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Lostsunrise [7]
3 years ago
15

Green Glass recently pays dividends. Future dividends are projected at $2.5, $3.5, and $4.5 over the next three years, respectiv

ely. Beginning four years from now, the annual dividend is expected to grow at 4% annually forever. What is one share of this stock worth to you today if you require a 12 percent rate of return on similar investments?
Business
1 answer:
Evgen [1.6K]3 years ago
4 0

Answer:

The price of one share of such a stock today is $49.86

Explanation:

The stock's price today under the Dividend discount model can be calculated by discounting the expected future dividends to the present value using an appropriate discount rate. When the dividend growth becomes constant, we calculate the terminal value and discount it back too. The appropriate discount rate is the required rate of return. The worth of one of such stock today is,

V0  =  2.5 / (1+0.12)  +  3.5 / (1+0.12)^2  +  4.5 / (1+0.12)^3  +  

[4.5 * (1+0.04) / (0.12 - 0.04)]  /  (1+0.12)^3

V0 = $49.86

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22. Which one of the following is correct regarding the utilization of a good without an alternative use?
photoshop1234 [79]

Answer:

it's 2 opportunity cost will increase

thank uh

8 0
1 year ago
Cogswell cola purchased a machine for $237,500. The firm paid another $5,750 for delivery and installation. In addition the firm
Novay_Z [31]

Based on the cost of purchasing the machine and the delivery and installation fees, the initial outlay is $243,250

<h3>How much is the initial outlay?</h3>

This can be found as:

= Cost of purchasing machine + Installation and delivery cost

Solving gives:

= 237,500 + 5,750

= $243,250

Find out more on fixed asset capitalization at brainly.com/question/25355478

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3 0
2 years ago
For each of the following cash activities, choose the appropriate letter to match the activity with the internal control princip
Helen [10]

Answer:

A. Restrict access

C. Establish responsibility

D. Document procedures

B. Independently verify

Explanation:

A. Restrict access, as the password is set to address the cash register, that is a security is being provided, and this is because, there is a restricted access, for the safety purpose.

C. Establish responsibility - As the treasurer is held liable of making and receiving any checks, and that he is the person who shall monitor such things, related to transactions in checks.

D. Document procedures - since a list is prepared for the checks received in mail, it is mere preparation of records and documentation of what checks are received and what not.

B. Independently verify - Bank Reconciliation Statement is prepared to verify the transactions and match the balance in books with that of the bank pass book.

6 0
3 years ago
Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sa
lesya [120]

Answer:

$192,500

Explanation:

budgeted net income statement

Net sales                   $750,000

<u>COGS                       ($300,000) </u>

Gross profit               $450,000

Selling expenses       ($83,000)

<u>Adm. expenses         ($92,000) </u>

EBIT                           $275,000

<u>Income taxes             ($82,500) </u>

Net income                $192,500

8 0
3 years ago
Factory Worker<br> A. Natural Resource<br> B. Human Resource <br> C. Capital Resource
sukhopar [10]

Answer:

B. Human Resource

Explanation:

The functions and responsibilities of a factory worker differ depending on the workplace. A factory Worker may operate machinery and tools, work on a  production line, clean and repair equipment, or work as required.

Factory Workers work in manufacturing or processing facilities, are good with their hands, and execute repetitive duties. Factory workers are hence are a human resource.

5 0
3 years ago
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