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Brut [27]
3 years ago
10

Antiques ‘r' us is a mature manufacturing firm. the company just paid a dividend of $12.30, but management expects to reduce the

payout by 5 percent per year, indefinitely. if you require a return of 9 percent on this stock, what will you pay for a share today? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) current share price
Business
1 answer:
marishachu [46]3 years ago
5 0

The constant growth model can be used here even if the dividends are decreasing by a persistent percentage, just make sure to distinguish the negative development. So, the computation for the price of the stock today will be:

P= dividend (1 +reduce payout) / (Return–reduce payout)

P= $12.30(1 – 0.05) / [(0.09 – (–0.05)]

P= $11.69 / 0.14

P = $83.46 is the price you will pay for a share today.

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tensa zangetsu [6.8K]

Answer:

Economic efficiency

Explanation:

Economic efficiency is when the allocation of resources in an economy is fully optimal and benefits all economic agents. It is when nothing can be improved without putting another at a disadvantage.

It is when there's equilibrium in the economy.

I hope my answer helps you

4 0
3 years ago
An investor sold 100 shares of ran common stock short at $50 per share. the ran is now at $38. the investor is still bearish on
Anni [7]

If the investor is my client, i will advise him to enter a buy stop order at $40.

<h3>What is the buy stop order?</h3>

In the share market, these are protective tool that are mainly for short sellers.

Now, as the stock should begin to rise from its current price of $38, once it reaches or exceeds $40, a buy order at the market is entered.

Hence, the stock purchased is used to cover the short position and the investor's profit is the $50 sale price minus the cost of the purchase.

However, because the investor is short term person, the only protective order would be a buy and not a sell.

Therefore, i will advise him to enter a buy stop order at $40

Read more about buy stop order

<em>brainly.com/question/14206094</em>

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7 0
2 years ago
On september 1, abc company borrowed $50,000 on a 6%, 9 month note payable to xyz national bank. given no previous adjusting ent
Westkost [7]

To determine the answer to this, let us first determine the interest using the formula:

Interest = Principal amount * Interest rate * Number of months / 12

September to December would be 4 months, therefore:

Interest = $50,000 * 0.06 * 4/12

Interest = $1,000

Therefore the adjusting entry should be:

debit to Interest Expense of $1,000

8 0
3 years ago
Read 2 more answers
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yuradex [85]

it should be yes since it come out true

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olya-2409 [2.1K]

Answer:

the correct answer is "Mobile Banking".

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Mobile banking is more popularized through the launch of new applications in the iOS and Android platforms.

Mobile banking has made it easier for the customers to do banking related activities and it has made it easier for the banks to process more transactions without increasing their number of employees.

7 0
3 years ago
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