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beks73 [17]
3 years ago
6

Nu-Tek is expanding rapidly. As a result, the company expects to pay annual dividends of $.62, .80, and $1.05 per share over the

next three years, respectively. After that, the dividend is projected to increase by 4 percent annually. What is the current value of this stock if the required return is 16 percent? 1. $7.63 2. $9.67 3. $10.46 4. $6.58 5. $8.49
Business
1 answer:
MrRa [10]3 years ago
8 0

Answer:

1) $7.63

Explanation:

we must can determine the price of the stock by calculating the present value of the cash flows (dividends):

present value = $0.62/1.16 + $0.80/1.16² + $1.05/1.16³ + [($1.05 x 1.04)/ (16% - 4%)] = $0.53 + $0.59 + $0.67 + $9.10/1.16³ = $0.53 + $0.59 + $0.67 + $5.83 = $7.63

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One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today,
Dennis_Churaev [7]

Answer:

current price = $1191.79

Explanation:

given data

time t = 15 year

annual coupon bonds rate =  = 7.5 %

par value = $1000

interest rate = 5.5%

maturity time  = 14 year

to find out

current price of the bonds

solution

we get here first annual coupon rate = 7.5% of 1000

annual coupon rate  C = $75

so now we get current price of bond

current price of the bonds = \frac{C}{(1+r)} +\frac{C}{(1+r)^2} +\frac{C}{(1+r)^3} +\frac{C}{(1+r)^4} ..........\frac{C}{(1+r)^{13}} + \frac{C+par\ value}{(1+r)^{14}}      .................1

put here value

current price = \frac{75}{(1+r)} +\frac{75}{(1+r)^2} +\frac{75}{(1+r)^3} +\frac{75}{(1+r)^4} ..........\frac{75}{(1+r)^{13}} + \frac{75+1000}{(1+r)^{14}}  

current price = \frac{75}{(1+r)} \frac{1-(\frac{1}{1+r})^{14} }{r} (1+r) + \frac{1000}{(1+r)^{14}}

solve it we get

current price = $1191.79

4 0
3 years ago
jonathan is a photographer. he has been hired by a company to shoot an advertisement for their product. which role does Jonathan
Molodets [167]
Hey there,

Your question/statement reads: <span>Jonathan is a photographer. he has been hired by a company to shoot an advertisement for their product. which role does Jonathan play in the advertising process for the product.

Based on the small excerpt above, I believe the Jonathan would be played as the (boss) in a way. It said on how he advertised and he also hired people. So he would be the (boss/leader) of this. And also, he would be the owner of this product.

Hope this helps.
~Jurgen</span>
8 0
3 years ago
Read 2 more answers
In a small open economy, starting from a position of balanced trade, if the government increases the income tax, this produces a
aniked [119]

Answer:

Trade Surplus and positive net Capital flow

Explanation

5 0
3 years ago
The rule of law is important because it _______. In regard to governments, the rule of law _______.
blondinia [14]
Blank 1. Protect citizens from crime and justice
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7 0
3 years ago
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Accumulated Deprecia
ludmilkaskok [199]

Answer:

all the given figures are wrong but i explained the correct procedure.

Explanation:

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Therefore, The Net income for the period is $11900.

3 0
3 years ago
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