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AURORKA [14]
2 years ago
14

If you expect a stock be priced at $80 in one year and pay a dividend of $1.85, what is the most you would be willing to pay for

the stock today if you require a return of 13%?
Business
1 answer:
ElenaW [278]2 years ago
8 0

Willing to pay for the stock today is  $72.43.

Given values, Dividend = $1.85

                      Price = $80

                      return = 0.13

Formula, Current Price = (Dividend + Price ) / (1 + return )

                                     = (1.85 + 80) / (1+ 0.13)

                                     = $72.43

The number one purpose that buyers personal inventory is to earn a return on their funding. That go back commonly is available in  viable methods: The stock's price appreciates, this means that it is going up. you can then promote the stock for a profit if you'd like.

The very best way to shop for stocks is thru a web stockbroker. After beginning and funding your account, you may buy shares via the broker's internet site in a remember of minutes. Other options encompass the use of a full-provider stockbroker, or shopping for inventory directly from the company.

Learn more about stock here:-

brainly.com/question/25818989

#SPJ4

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The Reynolds Corporation buys from its suppliers on terms of 3/13, net 35. Reynolds has not been utilizing the discounts offered
grin007 [14]

Answer:

Explanation:

A)

cost of not taking a cash discount = (1+3/(100-3))^(360/(35-13)) -1

cost of not taking a cash discount = 66.5%

B)

Effective rate of interest if the company borrows from the bank = (17/(100-12))

Effective rate of interest if the company borrows from the bank = 19.3%

3 0
3 years ago
Porter Incorporated issued $210,000 of 6 percent, 10-year, callable bonds on January 1, Year 1. The bonds were issued at their f
pshichka [43]

Answer:

Jan. 1

Dr Cash $210,000

Cr Bonds Payable $210,000

Dec. 31

Dr Loss on Bond Redemption $4,200

Bonds Payable $210,000

Cr Cash $214,200

Explanation:

Porter Incorporated Journal entries

Jan. 1

Dr Cash $210,000

Cr Bonds Payable $210,000

Dec. 31

Dr Loss on Bond Redemption $4,200

Bonds Payable $210,000

Cr Cash $214,200

(102%×$210,000=$214,200)

7 0
4 years ago
In​ 1916, the ford motor company sold​ 500,000 model t fords at a price of​ $440. henry ford believed that he could increase sal
quester [9]
For the answer to the question above,
we must use this formula,
(New - Old)/ (Ave. of New and Old)

In this case,
501k -500k/(500,500(which is the ave. of the two.
Then it would be 1k/500,500

Then the answer would be .0020
Then
-1.439.5/439.5 because this is the average of the two.
so the answer would be .0023

Then finally divide the rate on change of quantity by the rate of change in price which is
0.002/-0.0023

Then the answer would be -.87

So the elasticity on the demand of model T is .87 ( remove the negative because elasticity is always positive.)

6 0
3 years ago
What is an option in stocks
omeli [17]

A contract known as an option grants the buyer the right, but not the duty, to purchase or sell an underlying asset (such as a stock or index) at a given price on or before a particular date (listed options are all for 100 shares of the particular underlying asset).

<h3>What is an option? Explain.</h3>

An option is a contract that grants the buyer the right, but not the responsibility, to buy the underlying asset (in the case of a call) or sell it (in the case of a put) at a certain price on or before a specific date.

Options are used by people for revenue, speculation, and risk hedging.

Because they draw their value from an underlying asset, options are classified as derivatives.

A stock option contract normally entails 100 shares of the underlying stock, but other underlying assets, such as bonds, currencies, or commodities, are also acceptable.

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brainly.com/question/14134823

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6 0
1 year ago
State, in brief, with reasoning, whether following statement is correct/incorrect: “One cannot be everything to everyone, but ca
Olenka [21]

Answer:

Yes the statement is correct.

Explanation:

The statement is given by Matt Cheuvrant. In business the statement is absolutely correct that you can not satisfy the need of all the customers. A business cannot offer a product at less than its cost if a customer cannot afford it. Also an organization cannot start manufacturing a product because one customer demands it. If the company decides to satisfy all his customers by offering a large variety of products it may result in establishing in-house competition resulting in declining profits from both the products. If the company tries to give everything to every one this enhances its risk of failure resulting nothing in its own hands.

Businesses should focus on a single product and try to create a niche market. The product should be unique and its features should be extensively different from the other competitive products available in the market. This creates heavy switching cost to customers which ensures the business that customers will retain loyal to it. You can everything for few customers. They will not want to leave you because of your product specific features that are not available in the market.

8 0
3 years ago
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