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luda_lava [24]
3 years ago
11

Pat starts a business called ValueCentral, the concept takes off, and the company has an IPO and goes public. The company is gro

wing very rapidly and trying to keep up with customer demand. What type of dividend is this company likely to pay its stockholders
Business
1 answer:
defon3 years ago
3 0

Answer:

Very small or no dividend

Explanation

Dividend is simply the distribution of profit made by company, firm e.t.c to its shareholders. Most startup company do pay little dividend due to the profit outcome but others do not. It is necessary to pay dividend to shareholders as it shows your devotion and commitment to look after and be in one mind with investors.

most companies that are just startups do not pay a dividend mostly during the early stage of growth. The revenue derived from startup is used to grow and develop the company and not to share with shareholders but sharing little is not bad a all.

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A company pays $35,000 per period to rent a small building that has 12,000 square feet of space. This cost is allocated to the c
Alexus [3.1K]

Answer: $7,000

Explanation:

As the question says, a total of $35,000 is paid for 12,000 square feet of space and that the rent is apportioned on the basis of space.

Department One occupies 2,400 square feet of that space.

Calculating the proportion it occupies is,

= 2,400/12,000

= 20%

Since it occupied 20% of the total space then it should be charged 20% of the rent bill.

= 20% * 35,000

= $7,000

Department One should be charged rent expense for the period of $7,000.

6 0
3 years ago
It announces that it plans to pay dividends of $1 per share exactly three years from now and $2 per share exactly four years fro
kkurt [141]

The Question is incomplete.

The complete question is as follows:

It announces that it plans to pay dividends of $1 per share exactly three years from now and $2 per share exactly four years from now. From year 5 onwards, dividends are expected to grow at a constant rate of 10% per year. The company pays no dividends in years one and two. The risk-free rate is 5%, the company's beta is 1.5 and the expected return on the market is 11%. Calculate the price of this stock today

Answer:

Price of stock =  $34.42

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.</em>

Required rate of return

Using the CAPM , the rate of return on equity can be determined as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 5%, Rm- 11%, β- 1.5

Ke = 5% + 1.5× (11-5)%

   = 14%

Present value of Dividends(PV)

Year                                                      PV

3                       $1.00, × (1.14^(-3) =   0.6749

4                        $2.00× 1.14^(-4) =  1.18416

<em>5 and beyond</em>

<em>This will be done in two (2) steps as follows:</em>

PV in year 4 = (2 × 1.10) /(0.14-0.1) = 55

PV in year 0 = 55× 1.14^(-4) = 32.56

Price of stock

=  0.6749  +  1.18416 + 32.56

=  $34.423

7 0
3 years ago
Which type of private security personnel provides the given service?
Vinil7 [7]

Answer:

Private security guards provide security for people and facilities. They typically deal with issues related to trespassing, burglary, theft, or threats to their clients.

Explanation:

8 0
3 years ago
Private enterprise is run mainly to?
saw5 [17]
Most private enterprise mainly run to gain profit
8 0
3 years ago
Which of the following is broadly defined as the development of new products, processes, organizations, management practices, an
omeli [17]

<span>In development of new products, the most defined aspect is the processes.  It takes a great deal of effort and time in product creation in laboratories. Testing the feasibility of new product in actual manufacturing environment. Trials are done to capture and document actual procedures, machine specifications, safety requirement, and actual working parameters to achieve the desired specification of the new product. </span>

3 0
3 years ago
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