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
Ahat [919]
4 years ago
6

Avril Synchronistics will pay a dividend of $ 1.40 per share this year. It is expected that this dividend will grow by 7​% each

year in the future. What will be the current value of a single share of​ Avril's stock if the​ firm's equity cost of capital is 15​%?
Business
1 answer:
professor190 [17]4 years ago
4 0

Answer:

$18.73 per stock

Explanation:

we need to calculate the company's terminal value and we can use the dividend growth model:

P₀ = Div₁ / (Re - g)

  • Div₁ = $1.40 x (1 + 7%) = $1.498
  • Re = 15%
  • g = 7%

P₀ = $1.498 / (15% - 7%) = $1.498 / 8% = $18.725 ≈ $18.73 per stock

You might be interested in
Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its
Delicious77 [7]
I think this is false
3 0
3 years ago
Kenya sells her 20% partnership interest having a $28,000 basis to Ebony for $50,000 cash At the time of the sale, the partnersh
Anettt [7]

Answer:

Cash received from ebony is 50k

payment to be met is 28000

net income is

$50000-$28000=$22000

is the net income to be recognised

4 0
4 years ago
In order to eliminate piles, you must _________.
sweet [91]
B. Keep surfaces clear

??
I hope its the right answer....If its not I'm sorry, but I hope it helps!
5 0
4 years ago
__________ refers to the location of the sport product, the point of origin for distributing the product, the geographic locatio
barxatty [35]

Answer:

Place refers to the location of the sport product, the point of origin for distributing the product, the geographic location of the target markets, and other channels that are important to consider regarding how target audiences may access the product.

Explanation:

Place is simply a portion of space designated or available for or being used by someone.

6 0
3 years ago
Zara's staff members regularly collect data from customers at its stores. This data is used to: a. decide the designs and styles
umka2103 [35]

The details are important for settling on the models and patterns (designs and styles) for Zara's goods for the Upcoming few seasons.

Option-a

<u>Explanation: </u>

The collection of data is described as the approach of objective analytical observations utilizing standard established techniques compilation, calculation and evaluation. On the basis of data obtained, a scientist will test his hypothesis. In many other situations, the collection of data is the key phase for science, regardless of the area.

Based on the information required, the method of data analysis is unique for various subject areas of study. The main aim of the collection of data is to ensure that accurate information is gathered for statistical methods so that information-driven analytical decisions can be taken.

4 0
3 years ago
Other questions:
  • The income tax rate in a state is a flat 10 percent. Based on that rate, who has the higher tax burden?
    10·1 answer
  • Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check a
    7·1 answer
  • The exit-voice-loyalty-neglect (EVLN) model Multiple Choice outlines the four consequences of emotional intelligence. is a templ
    12·1 answer
  • If the manager of the open market desk hears that a snowstorm is about to strike New York City, making it difficult to present c
    5·1 answer
  • A company had beginning inventory of 12 units at a cost of $15 each on March 1. On March 2, it purchased 12 units at $24 each. O
    15·1 answer
  • What is commercial cooking?<br>​
    11·2 answers
  • Ummmmmmmmmmmmmmmmmmmmmmmmmmm
    11·1 answer
  • The value of a levered firm will be greater than the value of an identical unlevered firm because the levered firm's taxes will
    10·1 answer
  • this section should include how using the spreadsheet data assisted you in 1) identifying supplier’s record for on-time deliveri
    9·1 answer
  • In most companies, portfolio management is typically done at the sbu or ___________ level of the firm.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!