You've collected the following information from your favorite financial website: 52-Week Price Stock DIV Div YId% PE Ratio Close Price Net Chg
Hi Lo
77.40 10.43 Palm Coal 0.36 2.6 6 13.90 -0.24
55.81 33.42 Lake Lead Grp 1.54 3.8 10 40.43 -0.01
131.00 69.85 SIR 2.35 2.6 10 89.04 3.07
50.24 13.95 DR Dime 0.80 5.2 6 15.43 -0.26
35.00 20.74 Candy Galore 0.32 1.5 28 ?? 0.18

According to your research, the growth rate in dividends for IBM for the next 5 years is expected to be 5 percent. Suppose IBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 3.5 percent indefinitely. Assume investors require a return of 10 percent on IBM stock.

Required:
a. According to the dividend growth model, what should the stock price be today? Do not round intermediate calculations. Round your answer to 2 decimal places
b. Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued?

Identify which of the twelve basic functions listed below fit the description given.

How do primary and secondary industries differ

White company has two departments, cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: department cutting finishing direct labor-hours 6,000 30,000 machine-hours 48,000 5,000 total fixed manufacturing overhead cost $ 264,000 $ 366,000 variable manufacturing overhead per machine-hour $ 2.00 " variable manufacturing overhead per direct labor-hour " $ 4.00 required: 1. compute the predetermined overhead rate for each department. 2. the job cost sheet for job 203, which was started and completed during the year, showed the following: department cutting finishing direct labor-hours 6 20 machine-hours 80 4 direct materials $ 500 $ 310 direct labor cost $ 108 $ 360 using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to job 203. 3. would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?