What is the current price of commission stock

Assignment Help Financial Accounting
Reference no: EM132861068

Question - The Happy Cat Company has recently discovered a new type of kitty litter which is extremely absorbent. It is expected that the firm will experience (beginning now) an usually high growth rate 20% during the period 3 year it has exclusive rights to the property where the kitty litter material can be found. However the beginning of the fourth year the firm's competition will have access to the material and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period the firm dividend payout ratio will be relatively low (20%) to converse funds for reinvestment. However the dividend payout ratio will increase to 50% in year 4 Last year's earnings were $2 per share (EPS) and the firm cost equity is 10% required. What is the current price of commission stock?

Reference no: EM132861068

Questions Cloud

What amount should company report as depreciation expense : During 2019, the company purchased equipment costing P50,000, and sold equipment with a carrying value of P9,000. What amount should the company report
How has regulatory change affected market for pharmaceutical : How has this regulatory change affected the market for pharmaceuticals? Why do you think so much more money is spent on marketing drugs
What are the compelling points within the debate : What issues come to mind? For you, what are the compelling points within the debate - How will you balance these perspectives as one person
What is the role of pharmaceutical marketing : Assessment of the impact of advertising legislation on market behavior for the pharmaceutical industry. What is the role of pharmaceutical marketing
What is the current price of commission stock : The Happy Cat Company has recently discovered a new type of kitty litter which is extremely absorbent. What is the current price of commission stock
Describe how transformational leadership skills : Describe how you, as a supervisor, would use the techniques with the supervisee and Describe how transformational leadership skills could be used
How airline company operate the flight : FAR part 135 It has to be about a small airliner.Basically we choose an airline and write about how they operate their flight based on part 135.
Disasters-mental health and special needs populations : What are some mental health effects for emergency responders during a disaster? How would you include mental health in a disaster response plan?
Explain what enterprise resource planning system is : 1. Explain what Enterprise Resource Planning System is. How can it be used for Blue Dog Inc. accounting and financial management?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Cost volume profit relationship

Omar coorporation manufactures faucets. the variable cost of production are $37 per faucet. fixed cost of production are $876000. omar then sells it for a price of $61 per unit. how much faucets does omar need to sell and make to brek even. how much ..

  What is the cost to Pharoah in US dollars

The bank quotes a forward rate of ¥120.00/$ to buy the required yen. What is the cost to Pharoah in U.S. dollars

  Which of the transactions would give rise

Which of the following transactions would give rise to a deferred income tax asset being recorded on the consolidated balance sheet?

  How to prepare the required entry that david morris should

how to Prepare the required entry that David Morris should make on December 31, 2014. On December 31, 2014, the Calvin T. Ng Bank enters into a debt restaurant

  What is the purpose of notes to financial statements

What is the purpose of notes to financial statements? If a firm does a good job presenting its financial statements, why are notes necessary?

  Prepare a schedule to show balance jenkins should report

For the year ended December 31, 2011, Bolivar reported net income of $312,000 and paid cash dividends of $96,000. Required: Prepare a schedule to show the balance Jenkins should report as its Investment in Bolivar Co. at December 31, 2011.

  Construct the profit and loss account

Provide a brief comment on each of these to help the bank manager review the accounts.

  Calculate the profitability index and irr

Examine of three approaches, Amanda would like Han to analyze the financial viability of the new plant and calculate the profitability index, NPV, and IRR.

  Describe the purpose of analytical procedures performed

Describe the purpose of analytical procedures performed in the planning stage of the audit. Project 2004 based on the incremental changes for each line item over the last three years.

  Included in the journal entry to record this transaction

Delta Corporation pays $500,000 to acquire 40% of the equity securities of Wiley Technologies on May 5, 2015. Which of the following will be included in the journal entry to record this transaction?

  Business in exchange for additional common stock

You have baking equipment, including an oven and mixer, which you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $5,000, and you transfer the equipment into the ..

  Identify the stakeholders in the case

Nicole Martins is the controller, Identify the stakeholders in the case. Explain the ethical issues the case involves. If you were Nicole, what would you do?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd