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Evgen [1.6K]
2 years ago
14

Precision Engineering recently announced that its next annual dividend will be $1.20 per share with later dividends increasing b

y 2.5 percent annually. What is the current value of this stock to you if you require a 12 percent rate of return?
Business
1 answer:
Alexus [3.1K]2 years ago
3 0

Answer:

The current value of the  stock  is $12.63

Explanation:

price of a share

P_{t} = \frac{D_{t} }{R - g}  ... 1  

                                     where, P_{t} = price of a stock at t years

                                      D_{t} = dividend at year t

                                       R= rate of return from market

                                       g = growth rate of dividend

substituting into equation 1

P_{t} = $1.2 ÷ 12% - 2.5%

    = $1.2 ÷ 0.095

    = $12.6316

     = $12.63

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Answer:

Relevant Range

Explanation:

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This production range is called Relevant range because the expected fixed cost will not vary if the production is in the range 120000 to 150000.

Also, the for increase in production more than 150000 will lead to the extra cost or if the production is less than 120000 the company may need to reduce its fixed cost.

6 0
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Montague (age 15) is claimed as a dependent by his parents, Matt and Mary. In 2019, Montague received $5,090 of qualified divide
IRISSAK [1]

Answer:

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Explanation:

In order to calculate his taxable income for 2019 first we have to calculate the following:

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Taxable income for 2019=total income-Higher of the following two:a. $1,000 or b. $890+$350

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2 years ago
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False

Explanation:

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Leno4ka [110]

Answer:

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