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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

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Who lowered interest rates on government bonds in order to create a fund to pay an annual sum to the survivors of the emigres wh
REY [17]

Answer:

Charles X

Explanation:

Charles X was a king of France between 1824 and 1830 and for the greater part of his life was known as the Count of Artois. During his reign as king, Charles X, whose full name is Charles Phillipe, lowered interest bonds to create funds to pay survivors of the emigres who forfeited their lands. He also restores primogeniture(the right of succession of the throne by first borns). He also enacted the law of death or imprisonment for sacrilege in his support of the Roman Catholic Church.

Cheers.

5 0
3 years ago
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the
dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units,    Selling Price is set at SP = $35

- @ Q = 500 units,    Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0
3 years ago
I had a account but now i cant get this app what do i do i cant even get a new account
Alborosie

Answer:

Yes you can of course you can

8 0
3 years ago
Read 2 more answers
Tone Loc and 89 of his biggest fans formed an S corporation, 2hit, Incorporated, as the original 90 shareholders. Tone then tran
Alja [10]

Answer:

92 shareholders

Explanation:

According to the S corporation shareholder limit rules, family members count only as 1 shareholder. The meaning of family member is very broad, including spouses, uncles, aunts, children, grandparents, grandchildren, first cousins, and even ex-spouses count as members of the same family.

So that means that Tone Loc, his grandfather, his four cousins, his five children and three of his grandchildren, will all together count as just one shareholder.

His two friends are not included in his family.

5 0
2 years ago
Bradley Snapp has deposited $5,000 in a guaranteed investment account with a promised rate of 6% compounded annually. He plans t
Sever21 [200]

Answer:

$6,312.38

Explanation:

Bradley snapp deposited $5,000 in an investment account

He was given a rate of 6% compounded annually

He plans to leave the money there for 4 years when he will make a down payment on a car

Therefore the down payment which he will be able to make can be calculated as follows

= $5000×(1+0.06)^4

= $5000×1.06^4

= $5000 × 1.26247696

= $6,312.38

Hence the down payment Bradley will be able to make is $6,312.38

8 0
3 years ago
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