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
Romashka-Z-Leto [24]
1 year ago
12

how much of a stock's $30 price is reflected in pvgo if it expects to earn $4 per share, has an expected dividend of $2.50, and

a required return of 20%?
Business
1 answer:
Kruka [31]1 year ago
7 0

The amount of the stock price that will be reflected in the PVGO is $10

The value of an organization's potential future growth is symbolized by the acronym PVGO, or "present value of growth opportunities." It represents the potential value for the organization by reinvesting its earnings back into the business.

Expected Dividend payment (D) = $2.50

Total Earnings (E) = $4

Rate of return (ROR) = 20%

Step 1. Using no growth rate (GR), computing the stock price (SP)

Since the growth rate is not specified, 0% is taken as the default value.

The stock price (SP) = E/ROR

= $4 / 20%

Stock price = $20.

Step 2. Computing the SP reflected in PVGO.

So, total SP with no GR

= $30 - $20

Stock price with no growth rate = $10

Hence, the $10 will be reflected in the PVGO

Learn more about PVGO:

brainly.com/question/28434542

#SPJ4

You might be interested in
You want to show the stock price of a company over the last 6 months. What type of chart would be best for this purpose?
velikii [3]
C. Line

Because the stock prices rise and fall and a line graph best depicts the fluctuation of said prices
7 0
3 years ago
HELP IM TIMED!!!!!!!!!
lutik1710 [3]

Answer:

F

Explanation:

7 0
3 years ago
Which countries were involved in the central powers alliance.
kirza4 [7]
Germany, Austria-Hungary, Ottoman Empire and Bulgaria.
7 0
3 years ago
Sandhill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer
Alla [95]

Answer:

$2,319,000

Explanation:

Amount

March1 $1,884,000

June 1 $1,284,000

Dec 31 $3,082,450

Capitalization period

March1

10/12×$1,884,000 =$1,570,000

June 1

7/12 $1,284,000=$749,000

Dec 31

0

Weighted Average Accumulated expenditure

March 1 $1,570,000

June1 $749,000

Dec 31 $0

Total $2,319,000

8 0
3 years ago
Who wants brainliest? <br><br> Name 3 ways it is okay to use copyrighted material and explain:
mart [117]

Answer:

1:  Criticism

2: Parody

3: News Reporting

4: Research, Scholarship

5: Teaching

Explanation:

Fair use allows limited use of copyrighted material without permission from the copyright holder for purposes such as criticism, parody, news reporting, research and scholarship, and teaching. There are four factors to consider when determining whether your use is a fair one.

5 0
3 years ago
Other questions:
  • When a manager decides to give a sales rep a bonus at the end of the fiscal year for a job well done, what type of reward is thi
    13·1 answer
  • A quota on imported avocadoes ______________ the price of avocadoes, _____________ consumers’ surplus for avocado buyers, ______
    5·1 answer
  • Security $ Invested Expected Return 1 $5,000 7% 2 $7,000 9% 3 $9,000 12% Give the data above: What is the weight of Security 1?
    15·1 answer
  • ​You're traveling in Japan and are thinking about buying a new kimono.​ You've decided​ you'd be willing to pay​ $175 for a new​
    9·2 answers
  • Define a quality cycle​
    15·1 answer
  • a manfucturing firm is considering two locations for a plant to producr a new product. Location A has a foxed cost of 80,000 and
    14·1 answer
  • Choose a real or made up company abd desvribe at least 3 variable costs the company has.
    15·2 answers
  • A new business is likely to need what bank service(s)? *
    7·1 answer
  • Why do overhead costs often shift from high-volume products to low-volume products when a company switches from a conventional c
    9·1 answer
  • The most successful job candidates seek to transform themselves from unknown into known quantities through?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!