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Natali [406]
2 years ago
13

zephyr inc. sells wind based systems for generating electricity. the company pays no dividends, but you estimate the stock will

be worth $50 per share
Business
1 answer:
Sever21 [200]2 years ago
4 0

The price should you be willing to pay for this stock is $24.86

<h3>Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type. What price should you be willing to pay for this stock?</h3>

A) $12.50.

B) $24.86.

C) $43.48.

D) $57.50.

Solution:

The price that will be paid for this stock can be calculated as follows:

50= x (15/100^5)

50= x (0.15+1^5)

50= x (1.15^5)

50= 2.0113x

Divide both sides by the coefficient of x

= 50/2.0113

= 24.86

Thus, the price that will be paid for the stock is $24.86

To learn more about the sum, refer

brainly.com/question/24244811

#SPJ4

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7 0
3 years ago
On April 1, 2018, Elucian Corporation invested in the bonds issued by the City of Westminster on January 1, 2018. These 10-year
timofeeve [1]

Answer:

D $302, 250

Explanation:

The computation of the total amount paid is shown below;

Total amount paid = Face value + accrued interest

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hence, the total amount paid is $302,250

Therefore the correct option is d.

We simply applied the above formula so that the correct value could come

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3 0
3 years ago
At a price of $10, the marginal revenue of a monopolist is $6. if the marginal cost of production is $8, what should the monopol
Eduardwww [97]

At a price of $10, the marginal revenue of a monopolist is $6. if the marginal cost of production is $8, the monopolist should keep the price at  same level  in order to maximize profits.

For increasing the profits the monopolist should increase the marginal revenue to $8 so that the mr =mc.

Every firm follows the rule of profit maximization. In this rule marginal cost is equal to the marginal revenue and the MR intersects the MC curve the profit will be the maximum at this level.

The marginal cost of production and marginal revenue are the economic measures which are used to determine the amount of output and the price per unit of a product that will maximize profits.

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6 0
2 years ago
During the 1920s, more people began to acquire shares of stock using
oksian1 [2.3K]

Answer:

Wait in line before trading

Explanation:

1920s stock brokerages. When a normal person wanted to buy or sell shares, they had to run to the next broker and sometimes wait in line before making their trade.

7 0
2 years ago
Read 2 more answers
ABC owns 80 percent of XYZ Corporation’s common stock. For the current financial year, ABC and XYZ reported sales of $500,000 an
agasfer [191]

Answer:

$284,000

Explanation:

                     ABC Corporation

       Consolidate Income Statement

For the year ended, 31 December, 20XX

Particulars               ABC                   XYZ                

Sales                     $500,000         320,000                        

Less: Expenses   <u>$(280,000)      $(240,000)</u>

Net Income          $220,000          $80,000                

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= $284,000

According to the proprietary theory approach, the wholly-owned company will get the same percentage it owns the proportionate of that subsidiary company or companies.

4 0
3 years ago
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