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
Ratling [72]
1 year ago
11

19. Suppose Wamba Itd paid a dividend last year amounting to sh 100,000. The dividend stream is expected to grow by 10% indefini

tely. If the discount rate is 20% what is the PV of the dividends?​
Business
1 answer:
Alinara [238K]1 year ago
8 0

The PV of the dividends is  107,843.1374.

Present value is the idea that states a sum of money these days is worth extra than that same quantity in the future. In other phrases, cash obtained in the future is not well worth as a great deal as an equal quantity obtained today.

The dividend cut price model DDM is a quantitative technique used for predicting the price of an enterprise's inventory primarily based on the idea that its gift-day fee is really worth the sum of all of its future dividend bills when discounted and returned to its present fee.

A dividend last year amounting to sh 100,000.

The dividend stream is expected to grow by 10%

The discount rate is 20%

The PV of the dividends is

​  Future Value = 10% 0f 100,000

                         = 10,000

Total future value = 100,000 + 10000

                            110000 =

       rate = 20%

Present Value= Future Value /  (1+interest rate%)

                      = 110000 / (1 + 0.2)

                      = 110000/1.02

                     = 107,843.1374

Learn more about dividends here:-brainly.com/question/25845157

#SPJ4

You might be interested in
You’ve just read the article about Macy’s and Nordstrom’s. Why do you think companies like Macy's have to move to an Omnichannel
uranmaximum [27]

The companies like Macy have to move to an Omnichannel strategy for selling their products because in Omnichannel strategy, products are sold through several distribution channels.

<h3>What is a distribution channels?</h3>

Distribution channel serves as the means by which companies make their products to be available to final consumer.

This channels encompass retailers as well as wholesaler, and in In omni channel, all the distribution channels are linked to each other.

Learn more about distribution channel at;

brainly.com/question/25630633

4 0
2 years ago
One reason some manufacturing companies have moved production from overseas locations back to the United States is an increasing
Liula [17]

Answer:

The key economic idea being exemplified is c) People are rational

Explanation:

The economists’ assumption is that firms and consumers utilize all available information to attain their goals and weigh all costs and benefits of each action taken. Moreover, firms and consumers only choose an action if the benefits exceeds the costs.  Therefore, the action of manufacturing firms to move their operations from overseas back to the US due to the increased preference for US manufactured goods exemplifies that consumers and firms rely on all available information when pursuing their goals.  

4 0
3 years ago
The human resources department is happy to announce a career development workshop. the workshop will be led by joseph pelletier.
katrin2010 [14]

Based on the question provided above, there are no choices provided and I have found a similar question that has its choices which are;

-          Use only complex sentences

-          Correct run-on sentences

-          Correct fragments

-          Use only simple sentences

-          Reduce sentence lengths

With the given choices, the correct answers are the following;

-          Correct run-on sentences – run on sentences should be corrected in order for the faulty sentences to be improved and revise as they contain two or more main clause or independent clause in which are being joined without any word to correct them and by this, it makes the readers confused.

-          Correct fragments – fragments should be corrected as these are sentences that are incomplete that makes the content of an information to lose its value as the information is incomplete.

-          Reduce sentence lengths – it is best to reduce sentence lengths so that the readers won’t find the reading material boring to read at and in the same time, make it more easy and attractive to read

8 0
3 years ago
Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Bos
aalyn [17]

Answer:

2016: $300 million; 40%; $60 million

2017: $450 million; 60%; $90 million

Explanation:

Total costs:

= Costs incurred in 2016 + Costs incurred in 2017

= $240 + $360

= $600

In 2016:

Percent of total excepted costs:

= Costs incurred in 2016 ÷ Total costs

= $240 ÷ $600

= 0.4 or 40%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.4 × $750 million

= $300 million

Income = Revenue recognized - Costs incurred in 2016

             = $300 million - $240 million

             = $60 million

In 2017:

Percent of total excepted costs:

= Costs incurred in 2017 ÷ Total costs

= $360 ÷ $600

= 0.6 or 60%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.6 × $750 million

= $450 million

Income = Revenue recognized - Costs incurred in 2017

             = $450 million - $360 million

             = $90 million

8 0
3 years ago
Small businesses that are just getting off the ground often have problems with the difference between cash coming into the busin
faust18 [17]

Answer:

d) <u>cash flow</u>

Explanation:

Small businesses are characterized by limited scale of operations and small quantum of revenues. Thus, small businesses in their initial stages have to deal with the common problem of shortage of funds owing to delay in receipts from debtors owing to relaxed credit terms.

The receipts are not received on time while the expenses accumulate which leads to a situation of cash crunch wherein it gets difficult to meet expenses and liabilities.

Thus, to avoid such situations businesses have to consider their credit policies and credit allowing limit so as to ensure enough cash to meet day to day working capital requirements.

This points towards being careful of cash inflows and outflows and efficient management of cash flows, keeping check on receipts and payments to ensure smooth operations.

4 0
3 years ago
Other questions:
  • The price-elasticity of demand coefficient, ed, is measured in terms of
    6·1 answer
  • Ronald's Fast Food just paid their annual dividend of $1.05 a shareThe stock has a bela of 1.6. The return on the US Treasury bi
    15·1 answer
  • What is the minimum number of different resume formats that an individual should have prepared?
    12·2 answers
  • Laurent saves money from his lawn service to buy a new $20,000 mower and trailer. He would like to buy the new equipment as soon
    7·1 answer
  • PLEASE HELP QUICK!!!!!
    9·2 answers
  • New technology is changing the way customers get their news, and Matador Media needs to find employees with entirely different s
    10·2 answers
  • The money supply decreases if:
    5·1 answer
  • Samira is a freshman basketball player who hopes to go to college on a basketball scholarship. She is offered the chance to play
    9·1 answer
  • MC Qu. 114 Lowden Company has an overhead application... Lowden Company has an overhead application rate of 155% and allocates o
    11·1 answer
  • One challenge faced by organizations is the need to focus on consumer needs while also ________ the interests of countless other
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!