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
Kitty [74]
3 years ago
14

1. Stock Values. Integrated Potato Chips paid a $2 per share dividend yesterday. You expect the dividend to grow steadily at a r

ate of 4 percent per year.
a. What is the expected dividend in each of the next 3 years?
b. If the discount rate for the stock is 12 percent, at what price will the stock sell?
c. What is the expected stock price 3 years from now?
d. If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? Compare your answer to (b).
Business
1 answer:
Mila [183]3 years ago
6 0

Answer:

Explanation:

a ) Expected dividend per share  in the next three  years :

1 ) 2 x 1.04 = 2.08

2 ) 2 x 1.08 = 2.16

3 ) 2 x 1.12 = 2.24

b )

Price of share at present  = 2.08 / (.12-.04 )

= 26

c ) Expected stock price after 3 years

= 2 x 1.16 / .08

= 29

cash inflow i year 1   :      2.08

cash inflow in year 2  :     2.16  

cash inflow in year 3        2.24  + 29  = 31.24  

Present value of cash flow

=  1.85   ,  1.72 ,  22.23

Total = 25.8

It is almost the same with that of data in ( b )

You might be interested in
In the treatment of U.S. exports and imports, national income accountants _____. rev: 04_09_2018 Multiple Choice subtract export
pogonyaev

Answer:

The correct answer is: add exports but subtract imports in calculating GDP.

Explanation:

National income refers to the production of goods and services by the residents of a nation within the geographical boundaries of a nation in a given period.

In the calculation of national income, net exports are included. This net export is the difference between exports and imports. In other words, we can say that exports are added and imports are included.

6 0
2 years ago
For a perfectly competitive firm, which of the following is not true at profit maximization?a. Total revenue minus total cost is
topjm [15]

Answer: Option (d) is correct.

Explanation:

Correct option: Market price is greater than marginal cost.

In a perfectly competitive market, there are large number of buyers and sellers. So, price is determined by the market forces.

At a point of profit maximization, price is equal to the marginal cost and we have to maximize the difference of the total revenue and total cost. It was not seen in a perfectly competitive market that the price is above the marginal cost at a profit maximizing point.

Therefore, option (d) is not true.

5 0
3 years ago
Hello everyone! I'am new over here!<br>May I have some friends?<br>(Indian☺️)​
Ipatiy [6.2K]
This is an education app... thanks for the points tho lol
3 0
3 years ago
Bramble Company purchased a new van for floral deliveries on January 1, 2018. The van cost $66000 with an estimated life of 5 ye
fgiga [73]

Answer:

$42,240

Explanation:

The computation of the balance of the Accumulated Depreciation account at the end of 2019 is as follows;

But before that the depreciation rate is

= 1 ÷ 5 × 2

= 40%

For the first year, the depreciation expense is

= $66,000 × 40%

= $26,400

Now for the 2019, the depreciation expense is

= ($66,000  - $26,400) × 40%

= $15,840

Now the accumulated depreciation is

= $26,400 + $15,840

= $42,240

6 0
2 years ago
Which is NOT a benefit of studying public speaking?
Advocard [28]
Which is NOT a benefit of studying public speaking? 

And the answer is Proves our expertise.

It will help you.
4 0
3 years ago
Read 2 more answers
Other questions:
  • The ____ is an email address used to send messages for distribution to list subscribers.
    5·1 answer
  • 2. You have been asked to identify the various segment in the market and then a potential targeting strategy. Describe the segme
    12·1 answer
  • Watauga Office Supply paid state unemployment taxes of $168.00. What is the entry to journalize the payment of the unemployment
    10·1 answer
  • Cheyenne is a manager at her company. She listens to an employee, Enu, voice his opinion about a policy that he disagrees with.
    5·2 answers
  • Other things being​ equal, demand is less elastic A. the smaller the percentage of a total budget that a family spends on a good
    5·1 answer
  • Government can reallocate resources of an economy through taxes, ________ payments, and by providing direct services..
    14·1 answer
  • An ATM card is used on January 24 to withdraw cash. What is the balance after this transaction? $158.53 $246.53 $15.00 $40.00
    12·2 answers
  • In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their
    7·1 answer
  • Why do more than half of enterprise application projects exceed budgets, deliver less than expected benefits, or experience over
    6·1 answer
  • Scott wanted to start a lawn cutting service but needed to purchase a lawnmower. Sherif gave Scott $30 in exchange for company r
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!