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Ackert Company's last dividend was $1.55




Question;1. Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price?$37.05$38.16$39.30$40.482. The Chadmark Corporation's budgeted monthly sales are $3,000. In the first month, 40% of its customers pay and take the 2% discount.The remaining 60% pay in the month following the sale and don't receive a discount.Chadmark's bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at $1,500.Other payments for wages, rent, and taxes are constant at $700 per month. Construct a single month's cash budget with the information given.What is the average cash gain or (loss) during a typical month for the Chadmark Corporation? Please show your calculation.


Paper#41010 | Written in 18-Jul-2015

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