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
The decision to purchase a good or service or a customer benefit package is based on an assessment by the customer of the percei
quester [9]

Answer: True

Explanation:

The decision to purchase a good or service or a customer benefit package is totally based on the price of that package or a good and on the benefits that a consumer will received after the purchase. A rational consumer will compare the price of a good with the perceived benefits. If the perceived benefits worth greater or equal to price then a consumer may purchase that product otherwise not. Therefore, a consumer's decision is largely depend upon the ratio of price and benefits.

8 0
3 years ago
Patio Creations is a manufacturer of outdoor furniture. Typically, customers purchase the company's products as the summer seaso
dmitriy555 [2]

The supply chain strategy that would work best for Patio Creations is the push strategy. This is further explained below

<h3>What is a push strategy?</h3>

A push marketing strategy, also known as a push promotional approach, is sim[ply defined as mone in which a company strives to take push its items to customers.

In conclusion, the push strategy helps the company strives to push its items to customers.

Read more about Business

brainly.com/question/10295065

#SPJ1

7 0
2 years ago
Which of the following statements are true regarding owners' equity and ownership rights held in noncorporate entities?
Degger [83]

Answer: A. Owners' equity for proprietorships and partnerships is usually referred to as capital.

B. No distinction is made between invested capital and retained earnings for a proprietorship or a partnership.

C. Neither proprietorships or partnerships issue stock.

Explanation:

The statements that are true regarding owners' equity and ownership rights held in noncorporate entities include:

• No distinction is made between invested capital and retained earnings for a proprietorship or a partnership.

• Neither proprietorships or partnerships issue stock.

• Owners' equity for proprietorships and partnerships is usually referred to as capital.

We should note that sole proprietorships and partnership typically don't have stockholders and shouldn't issue stock as they aren't separated from their founders.

Also, the owners' equity for proprietorships and partnerships is usually referred to as capital. We should note that for a sole proprietorship or a partnership, the equity is the owners capital account which can be seen on the balance sheet.

Based on the above explanation, all the options given above are correct.

5 0
3 years ago
Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Tyler wants to campaign for a
svp [43]

Available options are:

a. ​constitutional under the First Amendment.

b. ​an unconstitutional restriction of speech.

c. ​necessary to protect national interests.

d. ​justified by the need to protect individual rights

Answer:

Option A. ​Constitutional under the First Amendment.

Explanation:

The First Amendment gives several rights to the people of United which includes the freedom of religion, speech, press and filing of the petition in the courts. The court will look into the case whether or not the speech which the Tyler wants to broadcast endangers the security of United States or that the action threatens the rights of the peope (Tyler's supporters broadcast message at mid night within the city).

3 0
3 years ago
Suzanna was recently promoted to manager and is ready to start her first project with her new team. In order to develop trust an
ki77a [65]

After being recently promoted as a project manager for a new project with a new team, Suzanna must develop trust and establish the work rules by the way of interacting personally with her new team members.

<h3>Who is a project manager?</h3>

A person who is engaged or involved in planning, allocating and finishing a project for an organization, which is a part of the organizational goals, such a person is known as a project manager.

Hence, the significance of a project manager is aforementioned.

Learn more about a project manager here:

brainly.com/question/15610382

#SPJ1

5 0
2 years ago
Other questions:
  • Lee Holmes deposited $15,000 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee de
    9·2 answers
  • Fordon Corporation purchased a piece of equipment for $50,000. It estimated a 8-year life and $2,000 salvage value. At the end o
    8·1 answer
  • Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,
    11·1 answer
  • Bobby is a skilled mechanic who is also good at mowing lawns. He can mow his lawn faster and cheaper than the local lawn care se
    7·1 answer
  • The competitive firm's supply curve is equal to A. the portion of its marginal cost curve that lies on and above AFC. B. its mar
    14·1 answer
  • The laser printer in your home office needs to be replaced. You have been using it to print the normal number of pages that resu
    8·1 answer
  • Shidan Apartments purchased an apartment building to rent to university students on November 18, 2017. The following costs were
    8·1 answer
  • Cozelle, Inc., purchased inventory costing $125,000 and sold 80% of the goods for $200,000. All purchases and sales were on acco
    6·1 answer
  • Social elements common to this work. Note that common contexts are listed toward the top, and less common contexts are listed to
    7·2 answers
  • Are the statements true, false, or uncertain arguments? An export tax always reduces the exporter's net revenues. It is highly e
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!