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dimaraw [331]
8 months ago
12

eastern hotel corp. pays a constant $7.80 dividend on its stock. the company will maintain this dividend for the next 13 years a

nd will then cease paying dividends forever. if the required return on this stock is 11.2%, what is the current share price?
Business
1 answer:
Lesechka [4]8 months ago
6 0

The stock is now trading at $52.16 per share.

The current value of an annuity of n regular payments of P at r% with yearly payments is provided by:

PV = P × (1 -((1 + r) ^{-n}÷r))

Estes Park Corp. distributes a fixed rate of a dividend of P = $7.80 per share on its shares. The corporation will retain this dividend for the following n = 13 years before ceasing dividend payments permanently. If the necessary returns on this stock are not metis r = 11.2% = 0.112.

The actual share price is calculated as follows:

Current share price = $7.80 × (1 -((1 + 0.112) ^{-13}÷0.112))

$7.80 × ((1 - 0.251) ÷ 0.112)

$52.16

Therefore, the current share price is $52.16

Read more about the stock price at

brainly.com/question/15327515?referrer=searchResults

#SPJ4

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In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of ________ will have a production possibil
Nat2105 [25]

Answer:

The answer to this question is  (c) Labour, Labour intensive

In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of labour will have a production possibility frontier that is biased toward production of the labour intensive good

Explanation:

The Heckscher-Ohlin model is an economic theory that proposes that countries export what they can most efficiently and plentifully produce.  

The model emphasizes the export of goods requiring factors of production that a country has in abundance. It also emphasizes the import of goods that a nation cannot produce as efficiently. It takes the position that countries should ideally export materials and resources of which they have an excess, while proportionately importing those resources they need.

Therefore in regard to the question above,

In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of labour will have a production possibility frontier that is biased toward production of the labour intensive good  

Hence the answer is the third option, Labour, Labour intensive

5 0
3 years ago
Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually. The market rate on the
shutvik [7]

Answer:

e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.

Explanation:

Based on this information,Adonis Corporation is issuing a coupon paying bond.

  • The $286,827 that they receive is the market price/ market value of the bond.
  • The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
  • Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
  • The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
  • <em>Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.</em>
3 0
3 years ago
Which combination of changes would increase the glomerular filtration rate (gfr the most?
denis23 [38]
Increase<span> in systemic blood pressure, what mechanism </span>would increase GFR<span>? </span>
7 0
3 years ago
What is the average life expectancy for a paraplegic?
Korolek [52]

Paraplegic is set to manifest in an individual if the person has paralysis on both of his or her lower limbs and the cause of this is likely because of an injury or spinal disease. The life expectancy of a person who has this illness is not definite because early than 18 months, there is already death within individuals who has this disease. But base on researches, its life expectancy is 18 months.

3 0
3 years ago
Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax.
bekas [8.4K]

$3878.55

Explanation:

Step 1 :

It is given that Kristy has a biweekly gross earnings of $1950.

Since it is bi-weekly payments there are 26 payments in the year.

Gross earnings per year = 1950 * 26 = $50,700

Step 2 :

It is given that the social security tax is 6.2% up to $128,400. Kristy's earnings of 50,700$ does not exceed the threshold $128,400, hence 6.2% of her entire income is subject to social security withholding.

Social security withholding = 6.2% of 50,700 = 6.2*50700/100 = $3143.40

Step 3 :

It is given that Medicare tax is 1.45% with no wage limit

Medicare withholding = 1.45% of 50,700 = 1.45*50700/100 = $735.15

Total withholding = Social Security withholding + Medicare withholding 3143.40 + 735.15 = $3878.55

7 0
3 years ago
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