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hammer [34]
3 years ago
6

motors gen corp just paid a dividend of 5.00 per share If dividends have been declining by 7% per year and you require a rate of

return of 12% . what is the value of stock
Business
1 answer:
yulyashka [42]3 years ago
3 0

if it is cold,then the lake is froce

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A company has a share price of $24.50 and 118 million shares outstanding. Its book equity is $688 million, its book debt-equity
Mrac [35]

Answer:

Enterprise value = $ 3,033

Explanation:

The enterprise value is full value of business. It includes total equity and debt. However cash and cash equivalent are not included in it. Detail calculations are given below.

Enterprise Value = Market value of equity/common stock + Total debt- Cash

MV of equity = 24.5 * 118 = $ 2,891

Total Debt    = 688/2*3   = $ 1,032

Cash                                 = ($ 890)

Enterprise value             = $ 3,033  

8 0
3 years ago
"Stephanie would like to purchase a bond that has a par value of $1,000, pays $100 at the end of each year in coupon payments, a
Rzqust [24]

Answer:

The price of the bonds = $951.963

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate  </em>

Value of Bond = PV of interest + PV of RV  

The PV of interest payment

A ×(1- (1+r)^(-n))/r

A- interest payment, r- interest rate, n- number of years

Interest payment  = 100

PV = 100× (1- 1.12^(-3))/0.12= 240.183

PV of redemption value  

PV = RV× (1+r)^(-n)

RV- Redemption value - 1,000, r- interest rate, number of years, number of years- 3

PV = 1000× 1.12^(-3) = 711.7802

The value of bond = 240.18 + 711.78= 951.963

The price of the bonds = $951.963

3 0
4 years ago
Explain why entertainers and athletes can charge so much for their events.
Usimov [2.4K]
Because they are most likely a professional and have knowledge of the specific activity from either college or doing it Him/Herself what they're doing when it comes to the aspect in which they are teaching training etc.Therefore they charge extra from prior knowledge of the activity.
3 0
4 years ago
Why is a high-quality bond typically considered a lower-risk investment than a stock?
dem82 [27]
There is risk in owning a stock and many unknown variables.  
In the case of bonds, you are guaranteed by the bond issuer that your principal and the agreed-upon interest will be paid at a defined time. 

Hope this helps
5 0
3 years ago
With respect to the key dimensions of service quality, promptly crediting returned merchandise and rapidly replacing defective p
emmainna [20.7K]

Answer:

responsiveness

Explanation:

With respect to the key dimensions of service quality, promptly crediting returned merchandise and rapidly replacing defective products is an example of<u> responsiveness</u>

7 0
3 years ago
Read 2 more answers
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