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erica [24]
3 years ago
12

Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share divi

dend in Year 7 and increase that dividend by 2.2 percent per year thereafter. What is the current share price if the required return is 16 percent?
Business
1 answer:
Anika [276]3 years ago
5 0

Answer:

$5.95

Explanation:

Given that,

Dividend paid in Year 7 = $2 per share

Growth rate of dividend = 2.2%

Required return = 16 percent

Share price is the present value of all future dividends.

Present Value of future dividends at year 6:

= \frac{Dividend\ in\ year\ 7}{Required\ return - Growth\ rate}

= \frac{2}{0.160 - 0.022}

= \frac{2}{0.138}

= $14.49

Present value of dividends (Now):

= Present Value of future dividends at year 6 × (1 + Required return)^{-6}

= $14.49 × (1 + 0.16)^{-6}

= $5.95

Therefore, the current share price is $5.95 if the required return is 16 percent.

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Participative leadership is enhanced when:______
ANEK [815]

Answer:

employees partake in the decision making in an organization.

Explanation:

Participative leadership is enhanced when employees are involved in the decision making of an organization, hence creating a collaborative approach towards running and managing the organization.

In participative leadership approach, all the members within a team collaborate in terms of identifying essential goals and finding a means to achieving those goals. The importance of participative leadership is that it boost the morale of employees by giving them sense of belonging.

8 0
3 years ago
A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays intere
DanielleElmas [232]

Answer:

$54.17 per bond

Explanation:

the journal entry to record the issuance of the bond:

Dr Cash 1,100

    Cr Bonds payable 1,000

    Cr Premium on bonds payable 100

The bond premium amortization using straight line amortization:

$100 / 30 = $3.33 per coupon payment

journal entry to record coupon payment:

Dr Interest expense 41.67

Dr Premium on bonds payable 3.33

    Cr Cash 45

the yearly interest expense = $41.67 x 2 = $83.34 x (1 - tax rate) = $83.34 x 0.65 = $54.17

5 0
3 years ago
A property sold in april for $216,500. it sold again 9 months later for $245,750. what was its average monthly rate of appreciat
Usimov [2.4K]

The monthly rate of appreciation is 1.50%.

Appreciation may be used to refer to growth in any sort of asset, along with inventory, bond, currency, or actual property. For instance, the term capital appreciation refers to a growth in the fee of economic belongings which includes stocks, which could arise for motives such as advanced financial overall performance of the enterprise.

It is a phrase normally said to any other individual because they trust that they deserve reputation and reward. Pronouncing that you recognize a person in a manner to present your time, difficult work, or energy to the person you need to apprehend.

Being preferred is a way to experience that we are important to others; we make a difference in their lives. We are valued — or maybe loved. it's far validating and meaningful to pay attention that what we've completed something component appropriate or that who we are is appreciated. As humans, we long for connection.

Learn more about appreciation here brainly.com/question/1833440

#SPJ4

7 0
1 year ago
Definition of unemployment insurance fund
Veronika [31]
Salutations!
Definition of unemployment insurance fund.

Unemployment insurance fund is a short term holiday, or consolation where workers do not work due to personal issues, such as: illness, family cases etc.
Hope I helped :D
7 0
3 years ago
Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a
Mazyrski [523]

Answer:

$154,050

Explanation:

The computation of the net income for the firm is shown below:

Sales               $634,000

Less: costs      -$328,000

Less: depreciation -$73,000

EBIT                   -$233,000

Less: interest      -$38,000

EBT                      195,000

Less: tax(195,000 × 21%) -$40,950

Net income    $154,050

We simply deduct all expenses ,interest and taxes from the sales revenue so that the net income could come and the same is to be considered

5 0
3 years ago
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