Hyper, Inc. is a growing firm that chooses to payout only 20% of its earnings as dividends (thus, it has a plowback ratio of .8). Hyper expects EPS next year of $5 and and a Return on Equity of 15%. This ROE is expected to be maintained indefinitely and is also appropriate to use for Hyper's required return on equity. Given this information, what is the current price of Hyper, Inc. stock

Answers

Answer 1

Answer:

a.$33.33

Explanation:

Options are "a.$33.33 , b. $30.13 , c. $16.67 , d. $26.66"

EPS1 = $5

D1 = 0.20($5) = $1

Sustainable Growth Rate = (0.80)(0.15) = 12%

As per Dividend Discount Model,

Stock Price = D1/(r - g)

Stock Price = 1/(0.15 - 0.12)

Stock Price = $33.33

Therefore, the current price of Hyper, Inc. stock $33.33


Related Questions

On February 28, Katherine wrote a check number 1021 to Hoopers Market for $189.43. Her beginning balance was $584.77. Calculate the new balance.

Answers

Answer:

Her new balance is $395.34

Explanation:

You take the starting balance of $584.77 and subtract it by the amount spent which was $189.43. Which gives you $395.34

As a meeting leader how should you aim to speak to the participants

Answers

Question: As a meeting leader, how should you aim to speak to the participants?

Answer: It's important you stay professional about things, so talk as formal as possible while still being comfortable enough for your peers to not be intimidated. Remember to be lively yet mature, loud but respectful, excited but diluted, etc.

Uplifting Note: Try making something tasty for your next meal, I made macaroons [not the little cookies, the coconut ones] for a snack!

Evidence that a source is authoritative includes
a.
An email address to ask further questions about information in the source
c.
No verbiage used which could identify bias about the information provided
b.
A date regarding when the source was written
d.
Logical structure of the information provided so that it is easily read and understood


Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

A is correct

Explanation:

its right

Answer:

a

Explanation:

edge2020

The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,050 units. The budgeted production units for July are:

Answers

Answer: 4,375 units

Explanation:

The budgeted production for July will be;

= July sales + Ending inventory - Beginning inventory

Ending inventory = 25% * August sales =25% * 4,900 = 1,225

Budgeted production = 4,200 + 1,225 - 1050 = 4,375 units

Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firm’s dividends are 30% of earnings. Investors have a required return on FSL shares of 12.4%. The company has a profit margin of 10%, total asset turnover of 0.9, and total debt ratio of 0.4.
a) Calculate the ROE of the company.
b) Calculate the price of FSL shares.
c) How much of that price is due to future growth opportunities?

Answers

Answer and Explanation:

The computation is shown below:

a) For ROE of the company

As we know that

Debt ratio = 1 - (1 ÷  Equity multiplier)

0.4 = 1 - (1 ÷ Equity multiplier)

(1 ÷ Equity multiplier) = 0.6

Equity multiplier = 1 ÷ 0.6

= 1.6667

Now ROE is  

ROE = Net Profit Margin × Total Asset Turnover × Equity multiplier

= 10% × 0.9 × 1.6667

= 15%

b) For the Price of FSL shares

Expected Dividend next year (D1) = Projected EPS × Dividend payout ratio

= $3.50 × 30%

= $1.05  

And, Required Return(ke) = 12.4%

Growth Rate(g) = ROE × (1 - Dividend payout ratio)

= 15% × (1 - 0.30)

= 10.5%

And finally the Price of STock:-

= D1 ÷ (ke - g)

= $1.05 ÷ (0.124 - 0.105)

= $55.26

C. For  Present Value of Growth Opportunity(PVGO)

As we know that

Present Value of Growth Opportunity(PVGO) = Stock Price - (EPS ÷ Ke)

= $55.26 - ($3.50 ÷ 12.4%)

= $27.03

Concord Corporation sells merchandise on account for $6300 to Windsor, Inc. with credit terms of 2/10, n/30. Windsor, Inc. returns $1500 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?



$6174


$4800


$4704


$6204

Answers

Answer:

$4704

Explanation:

The term 2/10, n/30 means that the buyer will get a 2% discount on the invoice amount if they make full payment with the first 10 days from the invoice date. If not, the full invoice amount is due in 30 days.

The buyer bought goods worth $6300 but made returns of $1500. the net purchases were

=$6300 - $ 1500

=$4,800

If the payment is made within  the discount period(10 days), the check amount will be less 2% discount.

i.e. the payment will be 98% of net purchases

=98/100 x $4800

=0.98 x $4800

=$4,704

g At the optimal quantity of a public good: A. marginal benefit exceeds marginal cost by the greatest amount. B. total benefit equals total cost. C. marginal benefit equals marginal cost. D. marginal benefit is zero.

Answers

Answer: C. marginal benefit equals marginal cost.

Explanation:

As is the case in the private sector , the optimal quantity of a public good is the quantity where Marginal benefit (revenue in private) equals marginal cost.

This is the optimal quantity because any quantity made that is more than this will result in marginal cost being greater than marginal benefit. This is therefore the highest quantity that can be produced without costs exceeding benefits so it is optimal.

How does increased competition through FDI in the form of greenfield investments affect the host country

Answers

Answer: It drives down prices and increases the economic welfare of consumers.

Explanation:

Greenfield investment is a form of Foreign Direct Investment where the investors build a facility/ies in the host nation from scratch as opposed to buying or leasing one.

With increased competition from greenfield investments, consumers would be better off because there will be more quantity of the relevant good available in the market. This will lead to the prices falling and consumers being able to afford more of the good at higher qualities.

Being held accountable and obligated to fulfill a commitment is ___.

Assets
Liability
Partnership
Logistics

Answers

The answer is Liability

Being held accountable and obligated to fulfill a commitment is Liability. Thus, option B is correct.

What is the liability?


A liability is defined as the future sacrifices of economic advantages that an entity is obligated to make to other entities as a result of previous transactions or other past occurrences.

In accounting, liability refers to any type of financial obligation that a company must pay to another person or company at the conclusion of an accounting period.

Financial advantages such as money, products, or services are used to satisfy liabilities. It is a company's future obligation to pay money to other persons or businesses.

Therefore, option B is correct, that being held accountable and required to fulfill a contract is Liability.

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Partnership should be one of the 8 Ps, but it's not because it doesn't have enough of an effect on organizations.
O True
False

Answers

Answer:

I think true and thanks for point

If Bounder Dog Supplies, Inc. purchased inventory at $2,200 list price and the terms were 3/10, n/30, what would be the value associated with the inventory if payment was made within 10 days? $2,200. $2,134. $2,334. $2,268.

Answers

Answer:

the  value associated with the inventory is $2,134

Explanation:

The computation of the value associated with the inventory is shown below

= Purchase value of the inventory - discount allowed

= $2,200 - $2,200 × 3%

= $2,200 - $66

= $2,134

hence, the  value associated with the inventory is $2,134

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

The inflation rate over the past year was 3.7 percent. If an investment had a real return of 9.2 percent, what was the nominal return on the investment?

Answers

Answer:

The nominal return on the investment is 13.2404%

Explanation:

The computation of the nominal return on the investment is shown below:

As we know that

nominal return = (1 + real rate) × (1 + inflation rate) - 1

= [(1  +0.092) × (1 + 0.037)] - 1

= (1.037 × 1.092) - 1  

= 13.2404%

Hence, the nominal return on the investment is 13.2404%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

5-1 FUTURE VALUE If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years

Answers

Answer:

FV= $16,105.1

Explanation:

Giving the following information:

Present value (PV)= $10,000

Interest rate (i)= 10% = 0.10

Number of periods (n)= 5 years

To calculate the future value (FV), we need to use the following formula:

FV= PV*(1+i)^n

FV= 10,000*(1.1^5)

FV= $16,105.1

Describe business transaction that will do the following.

a. Increase an asset and increase liability
b. Decrease an asset end decrease liability
c. Decrease an asset and it-crease an expense
d. Increase an asset and increase owner's equity
e. Increase an asset end decrease an asset
f. It-crease an asset and increase revenue

Answers

Answer:

a. Increase an asset and increase liability  - BUYING INVENTORY ON ACCOUNT.

Buying inventory on account would have the effect of increasing inventory(asset) whilst increasing Payables (liability) as well.

b. Decrease an asset and decrease liability . - PAYING FOR INVENTORY PURCHASED ON ACCOUNT.

When the company pays the vendor it bought goods from on account, this would reduce cash (asset) whilst reducing payables (liabilities) as well.

c. Decrease an asset and increase an expense . - PAYING FOR ADVETISING.

Paying for advertising would decrease cash (asset) whilst increasing the Advertising expense.

d. Increase an asset and increase owner's equity . - SELLING SHARES.

Selling shares would increase the cash (assets) in the business as people will pay for the shares while at the same time increasing the equity in the business as well.

e. Increase an asset and decrease an asset . - RECEIVABLES PAYING FOR GOODS BOUGHT ON ACCOUNT.

When debtors (receivables) pay off the balance of the goods they purchased from the company on account this would increase the cash (asset) in the business while at the same time reducing the Accounts receivables (also asset) in the company.

f. Increase an asset and increase revenue. - SALE OF GOODS.

Selling goods would either increase the cash (asset) or the Accounts receivable (asset) in a company while also increasing the sales (revenue) of the company as well.

Suppose the Chief Financial Officer (CFO) of a company is interested in raising funds for a major investment by issuing bonds of varying maturity to investors. One of the longer-term bonds being issued can be purchased for $75,000.00 per bond and pays $7,125.00 annually to the investor. What is the anual interest rate on this bond

Answers

Answer:

9.5%

Explanation:

Interest rate on the bond = Annual payment on thr bonds / Cost of the bonds * 100

Interest rate on the bond = 7.125 / 75,000 * 100

Interest rate on the bond = 0.095 * 100

Interest rate on the bond = 9.5%

Thus, the annual interest rate on the bond is 9.5%

Kate owns a refreshment-stand business at the community ball park. She goes to a warehouse like Sam's and purchases snacks and canned soda that she will sell at her stand. Kate is considered a

Answers

Answer:

retailer

Explanation:

From the question, we are informed about Kate who owns a refreshment-stand business at the community ball park. She goes to a warehouse like Sam's and purchases snacks and canned soda that she will sell at her stand. In this case Kate is considered a retailer. A retailer is someone or business that buy goods from the wholesaler or manufacturers and sell to the consumer in small quantities. Their role is important because they are found in promoting sustainability of consumption and production.

Where to write the account name? *
a)At the bottom of T account
b)At the top of T account
c)In the debit side
d)In the credit side

Answers

Answer:

b)At the top of T account

Explanation:

The account name is always written at the top of a T account. The account name is also the account title.

A T account has a standard format. The title or the name is what differentiates them.

Scott is saving for a down payment to buy a house. The account earns 7.7% interest compounded semi-annually, and he wants to have $10,000 in 5 years. What must his principal be

Answers

Answer:

$6,853.86 ≈ $6,854

Explanation:

we need to determine the present value of Scott's account:

present value = future value / (1 + i)ⁿ

future value = $10,000i = 3.85%n = 5 x 2 = 10 periods

present value = $10,000 / (1 + 0.0385)¹⁰ = $10,000 / 1.459 = $6,853.86

the present value formula allows us to calculate how much a future cash flow is in today's dollars

Answer:

6853.86

Explanation:

During 2020, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during 2020 for Benson?

Answers

Answer:Total manufacturing cost = $1,876,000

Cost of goods sold =$1,668,000

Explanation:

The  Total manufacturing costs is defined as  how much a company uses in production of  its inventory at a particular time. It takes three costs into consideration and they are Direct materials, Direct labor and Manufacturing overhead.

it is calculated using the formulae.

Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead

Direct raw materials =Beginning raw materials +materials purchased -Ending raw materials

=84000+1,450,000-68000=$1,466,000

Total manufacturing cost =$1,466,000+ $250,000 +$160,000

= $1,876,000

The total manufacturing costs incurred during 2020 for Benson is $1,876,000

Cost of goods sold =  Beginning Inventory of Finished goodd + Cost of Goods – Ending Inventory Of finished goods.

 $100,000 +  $1,660,000 - 92,000

$1,668,000

Note :

The beginning inventory =the value of inventory at  end of the previous year.

Urban Bloom, Inc.'s books show an ending cash balance of $18,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $4600, deposits in transit of $3600, NSF check of $260, and interest earned on the bank account of $170, the company's up-to-date ending cash balance equals:

Answers

Answer:

$17,910

Explanation:

With regards to the above, we would calculate the company's up to date ending cash balance as;

Up to date ending cash balance = Ending cash balance per books + Interest received from bank - NSF check

Up to date ending cash balance = $18,000 + $170 - $260

Up to date ending cash balance = $17,910

*Please note that outstanding checks and deposits in transit are used mainly to reconcile bank statements and not cash or book balance.

Do you know the answer?

Answers

Answer:

yes I do know the answer

Moving truck makes the displacement of (180m) toward east in period of(9.0s). What is the average velocity of the truck?someone please help!!

Answers

Answer:

20m/s due east

Explanation:

Given parameters:

Displacement  = 180m due east

Time taken = 9s

Unknown:

Average velocity of the truck  = ?

Solution:

The average velocity is the displacement divided by the time taken;

   Average velocity  = [tex]\frac{displacement}{time}[/tex]  

Insert the parameters and solve;

 Average velocity = [tex]\frac{180}{9}[/tex]   = 20m/s due east

[tex]\mathrm {Hey, there!}[/tex]

Let's solve your problem:

20 m/s due east is your answer.

For this question, we will use the displacement method.

The displacement method states:

You divide the larger number by the smaller number.

--- [tex]\mathrm {Equation}[/tex] - [tex]\mathrm {180m / 9.0 = 20.0}[/tex]

Tidy Limited purchased a new van on January 1, 2018. The van cost $36,000. It has an estimated life of six years and the estimated residual value is $3,600. Tidy uses the double-declining-balance method to compute depreciation. What is the adjusted balance in the Accumulated Depreciation account at the end of 2019

Answers

Answer:

$18,002.88

Explanation:

Depreciation Expense = 2 × SLDP × BVSLDP

Where,

SLDP = 100 ÷ Number of useful life

Therefore,

SLDP =  100 ÷ 6

         = 16.67 %

2018

Depreciation Expense = 2 × 16.67 % × ($36,000 - $3,600)

                                      = $10,802.16

2019

Depreciation Expense = 2 × 16.67 % × ($36,000 - $3,600 - $10,802.16)

                                      = $7,200.72

Accumulated Depreciation at the end of 2019 :

Accumulated Depreciation = $10,802.16 +  $7,200.72

                                             = $18,002.88

A bank will often hold government securities as an asset. If a bank were to sell $100,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in their vault, by how much would the money supply change as a result

Answers

Answer:

e. It would decrease by S100,000.

Explanation:

Options are "a. It would increase by $100,000 multiplied by the reciprocal of the required reserve ratio. b. It would decrease by $100,000 multiplied by the reciprocal of the required reserve ratio. c. There would be no change to the money supply. d. It would increase by $100,000. e. It would decrease by $100,000."

An individual paid cash in exchange of bond to bank and bank has that cash in its vault. Now, the bank sells securities worth $100,000 to that individual. In this case, the cash at bank will decrease by the amount of securities, that is $100,000 and the money supply also reduce by the same amount of $100,000.

Historically, the ________ risk an investor is willing to accept, the ________ the potential return for the investment.

Answers

Answer:

The correct option is (A)  more, greater

Explanation:

According to the risk return trade off, the risk is increased with the return that means if the returns are increased the risk is also increased and vice versa

So as per the given scenario, if there is more risk that investor wants to accept so the return should be more for the investment. This represents the direct relationship between the risk and return of the investment

hence, the correct option is (A)  more, greater

Why is it important to study ethics in school?
O A. Business values have improved since ethics was introduced into
the curriculum.
O B. Knowledge of ethical practices can stop you from making bad
decisions due to ignorance.
O C. It will make people more ethical.
D. It is required for entry into graduate business schools.

Answers

Answer:

b.

Explanation:

Knowledge of ethical practices can stop you from making bad decisions due to ignorance it is important to study ethics in school. Thus, option (b) is correct.

What is school?

The term school refers to the educational institutes that are involved with students and teachers. The teacher is a guide for the student. The teacher's job is to teach the student as related to the study, courses, and future guidance. The student is able to effectively communicate, build punctuality, decorum, ethics, and value.

According to the school are the based on the study ethics are the ethical practices can stop you from making bad decisions due to ignorance.  The person can earn money as they need to education. The education is level wise and based on capacity of the revised knowledge of the student. The education is included a basic necessity of the people.

As a result, the knowledge of ethical practices can stop you from making bad decisions due to ignorance it is important to study ethics in school. Therefore, option (b) is correct.

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John House has taken a $250,000 mortgage on his house at an interest rate of 6 percent per year. If the mortgage calls for 20 equal, annual payments, what is the amount of each payment?

Answers

Answer:

$21,796.14

Explanation:

Use the Time Value of Money techniques to calculate the amount of each installment (PMT)

PV = $250,000

i =  6 %

n = 20

P/yr = 1

FV = $0

PMT = ?

Using a Financial calculator to input the values as above, each annual instalment/payment will be $21,796.14.

A company purchased a delivery van for $18,200 with a salvage value of $2,200 on September 1, Year 1. It has an estimated useful life of 5 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1

Answers

Answer:

$1,066.67

Explanation:

Using straight line method, depreciation expense is constant throughout the life of an asset.

Depreciation is calculated as seen below;

Depreciation = Cost of asset - Residual value

= $18,200 - $2,200

= $16,000

Depreciation rate = 1/5 × 100

= 20 percent

Depreciation per year = 20/100 × 16,000

= $3,200

During the year 1, the van operated for four months (Sept, Oct, Nov and Dec)

Depreciation for the four months = 4/12 × 3,200

= $1,066

What is a hallmark of essembly lines in Henry fords time?

Answers

Answer:

On December 1, 1913, Henry Ford installs the first moving assembly line for the mass production of an entire automobile. His innovation reduced the time it took to build a car from more than 12 hours to one hour and 33 minutes.

Explanation:

Why are craftsman likely to produce fewer goods than modern manufacturers produce?
They do less intensive labor than manufacturing.
They are not organized into uniorhs
They are considered unskilled laborers.
They do more intensive labor than manufacturing
NEXT QUESTION
ASK FOR HELP

Answers

Answer:

They do more intensive labor than manufacturing.

Explanation:

Answer:

I see you copy and pasting from ignitia

Explanation:

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