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Tasya [4]
2 years ago
11

White Wedding Corporation will pay a $2.65 per share dividend one year from today. The company pledges to increase its dividend

by 4.75 percent per year, indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company's stock today
Business
1 answer:
bezimeni [28]2 years ago
8 0

The amount I will pay for the company's stock today is $42.40.

<h3>How much would I pay for the company's stock?</h3>

The amount I would pay for the company's stock is dependent on the value of the stock. The value of the stock can be determined using the Gordon growth model.

According to the Gordon growth model, the value of a stock is a factor of its dividend, growth rate and the rate of return.

Value of a stock = next year dividend / (rate of return - growth rate)

$2.65 / (11 - 4.75%)

$2.65 / 6.25%

$2.65 / 0.0625 = $42.40

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

#SPJ1

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The operators have not violated the antitrust laws because they are only collaborating to lobby the government

Explanation:

The antitrust law in the U.S. can be described as a group of federal and state government laws enacted to regulate the activities of business firms in order to enhance competition to the advantage of consumers.

The antitrust law aims to collusive activities that suppress trade, any merger and acquisition that would reduce competition, and prevent the the abuse of monopoly power.

Since the activity of the operators of adult bookstores does not fall under what the antitrust law aims to prevent but it is just a collaboration to lobby the government, they have a good defense that they have not violated the antitrust laws.

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Aggregate supply (as) denotes, while holding the price of inputs fixed, the <u>price level of output</u> that firms choose to produce and <u>GDP.</u>

<h3>What is aggregate supply?</h3>

Aggregate supply is when goods and service produced or manufacture are made available to buyers  or can be defined as the amount of goods produce and supply to the market at particular period of time.

Aggregate supply can tend to increase in a situation were the price of goods and services decrease or when the price of product fall.

Therefore, Aggregate supply donate, while holding the price of inputs fixed, the price level of output that firms choose to produce and Gross domestic product (GDP).

Learn more about Aggregate supply here:brainly.com/question/11889136

brainly.com/question/25749867

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