1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dimaraw [331]
1 year ago
8

Nighthawk theaters has 15,000 shares of stock outstanding and projected annual free cash flows of $48,200, $57,900, $71,300, and

$72,500 for the next four years, respectively. after that, the cash flows are expected to increase at a constant annual rate of 1.6 percent. what is the current value per share of stock at a discount rate of 15.4 percent?
Business
1 answer:
oksian1 [2.3K]1 year ago
6 0

The current value per share of stock is $31.57.

<h3>What is the current value per share ?</h3>

The two-stage dividend model would be used to determine the current value per share of the stock. In the two-stage dividend growth model, the first stage is characterised by high growth rate. In the second stage, the high growth rate falls to a steady or normal growth rate

Total cash flows in the second stage of constant growth: (72,500 x 1.016) / (0.154 - 0.016) = 533,768.12

Now determine the present value of the cash flows:

($48,200 / 1.154) +  ($57,900 + 1/154²) + $71,300/ 1.154³ + ($72,500 / 1.154^4) + (533,768.12 / 1.154^4) = $473,495.26

Current value per share = $473,495.26  / 15,000 = $31.57

To learn more about how to determine the value of a stock, please check: brainly.com/question/15710204

#SPJ1

You might be interested in
If the U.S. dollar is strong, foreign imports are
DaniilM [7]
D. Less expensive…………….
5 0
3 years ago
Areas of poorly maintained housing in cities are known as A. apartments. B. high rises. C. slums. D. projects.
Romashka-Z-Leto [24]
<span>Areas of poorly maintained housing in cities are known as C. slums.
The term slum refers to the worst parts of a city where people are very poor and live in bad conditions. Apartments can be good or bad, so that option is incorrect; high rises are just tall buildings; projects refer to public housing where the building is owned by the government, so that is also incorrect. 
</span>
5 0
3 years ago
Read 2 more answers
Riley operates a plumbing business, and this year the three-year-old van he used in the business was destroyed in a traffic acci
Mnenie [13.5K]

Answer:

$4,600

Explanation:

Data provided in the question:

Purchasing cost of the van = $20,000

Adjusted basis = $5,800

Worth of the van at the time of accident = $6,000

Insurance reimbursement = $1,200

Now,

The amount of Riley's casualty loss deduction will be

= Adjusted basis - insurance reimbursement

or

Amount of Riley's casualty loss deduction = $5,800 - $1,200

or

Amount of Riley's casualty loss deduction = $4,600

3 0
3 years ago
In a period of falling interest rates, a bond dealer would engage in which of the following activities?I Raise prices in interde
vredina [299]

Answer:

C. I, II, III

Explanation:

In a period of falling interest rates, a bond dealer would engage in all of the following activities except for IV. Therefore, a dealer would raise his quoted price in Bloomberg. If the dealer has an appreciated bond that he wishes to sell, he can place ''Request for Bids'' for those bonds in Bloomberg. The dealer may buy bond the he has previously sold short to limit losses due to rising price. To protect existing short position against the rising price, the dealer will buy call options, not put options. Put options are used in protecting existing long position from falling price.

8 0
3 years ago
Choose one of the scenarios below and write a three-paragraph essay describing its effect on prices for food, housing, and oil.
Ray Of Light [21]
<span>The issue isn't black and white, a true answer is closer to the middle ground but to play devil's advocate I personally believe investors have a net positive effect on companies they keyword: invest in. Investments naturally leads to expansion and growth, that's always at least a main goal of anyone profitable company. It produces more jobs, but it can have the negative effect of curbing jobs in the name of cutting costs. A lasting problem is an overreliance in investment when companies don't have enough liquidity to continue running and is forced to sell assets valuable to the business in times of panics and reduced investment. Overall investors are in large part a reason for the success of modern corporations.</span>
4 0
3 years ago
Other questions:
  • All of the following are examples of a SMART goal EXCEPT:
    5·1 answer
  • The going concern assumption of GAAP implies that the firm: __________
    11·1 answer
  • if the federal reserve sells a treasury bond bank what will be the effect on the invest rate the bank charges its customer loan
    10·1 answer
  • The last dividend paid by Klein Company was $1.00. The stock’s dividend growth rate is expected to be a constant 5 percent for 2
    12·1 answer
  • HURRY PLZ LOTS OF POINTS!!!!!!
    7·2 answers
  • If the government requires a natural monopoly to price at marginal cost, Group of answer choices monopoly firms will earn zero e
    8·1 answer
  • Francine must purchase $1,500 of coffee for her coffee cart business. Kevin agrees to loan Francine $1,500, accepting as collate
    5·1 answer
  • Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of al
    5·1 answer
  • Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2018–202
    7·1 answer
  • Four brokers decided to collaborate and refuse to show any of the properties listed by a new broker in the area in an effort to
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!