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
nadya68 [22]
3 years ago
12

Keidis Industries will pay a dividend of $3.55, $4.65, and $5.85 per share for each of the next three years, respectively. In fo

ur years, you believe that the company will be acquired for $53.00 per share. The return on similar stocks is 9.9 percent. What is the current stock price?
Multiple Choice

$61.72

$53.63

$51.10

$47.45

$47.82
Business
1 answer:
german3 years ago
8 0

Answer:

price = $47.82

Explanation:

Find the present value of each dividend at the required rate of return and sum them up to get the current price;

PV = FV /(1+r)^n

PV(D1) = 3.55/ (1.099^1) = 3.2302

PV(D2) = 4.65/ (1.099^2) = 3.8500

PV(D3) = 5.85 / (1.099^3) = 4.4072

PV(Price at t=4) = 53 / (1.099^4) = 36.3316

Price = 3.2302+2.9392+4.4072+36.3316

= 47.81897

Therefore, price = $47.82

You might be interested in
Sweden has real GDP per capita of $50,000, while Chile has real GDP per capita of $25,000. If real GDP per capita in Sweden grow
Katyanochek1 [597]

Answer:

option (B) 35 years

Explanation:

Given:

Real per capita GDP of Sweden = $50,000

Real per capita GDP of Chile = $25,000

Growth rate of Sweden = 2%

Growth rate of Chile = 4%

As per the Rule of 70, the economy's GDP doubles in \frac{\textup{70}}{\textup{Growth rate}}

Therefore,

The GDP of Sweden will double in = \frac{\textup{70}}{\textup{2}} = 35 years

and,

Chile will double in \frac{\textup{70}}{\textup{4}} = 17.5 years

Therefore,

in 35 years the GDP of Sweden will be $100,000

and,

In 35 years the GDP of Chile will also be ($50,000 in 17.5 years and $100,000 in next 17.5 years) = $100,000

Therefore,

The real GDP per capita in the two nations to converge in 35 years

Hence,

The correct answer is option (B) 35 years

8 0
2 years ago
Matlock Company uses a periodic inventory system. Its beginning inventory consists of 50 units that cost $ 34 each. On June 3, t
Luden [163]

Answer:

Matlock Company

Journal Entries:

June 3: Debit Inventory $5,100

Credit Cash $5,100

To record the purchase of inventory.

June 15: Debit Cash $6,250

Credit Sales revenue $6,250

To record the sale of goods.

June 15: Debit Cost of goods sold $4,250

Credit Inventory $4,250

To record the cost of goods sold.

Explanation:

a) Data and Analysis:

June 3: Inventory $5,100 Cash $5,100

June 15: Cash $6,250 Sales revenue $6,250

June 15: Cost of goods sold $4,250 Inventory $4,250

8 0
3 years ago
You plan to retire in 28 years. You would like to maintain your current level of consumption which is $52,672 per year. You will
igor_vitrenko [27]

Answer:

The amount to invest each year for 13 years is $5,617.37.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = current level of consumption = $52,672

P = amount to invest each year = ?

r = annual nominal interest rate = 5.03%, or 0.0503

n = number of years = 13

Substituting the values into equation (1) and solve for n, we have:

$52,672 = P * ((1 - (1 / (1 + 0.0503))^13) / 0.0503)

$52,672 = P * 9.37662983027493

P = $52,672 / 9.37662983027493

P = $5,617.37

Therefore, the amount to invest each year for 13 years is $5,617.37.

7 0
3 years ago
True or false rocks are not created destroyed but they are recycled
kvv77 [185]
True. Rocks are not created or destroyed they are recycled.
8 0
3 years ago
Read 2 more answers
Are costs that are incurred for every unit of volume. Total variable costs change in direct proportion to changes in volume.
lara [203]

Answer:

Variable cost increases for each new unit of volume produced. Hence as new products are produced the variable cost increases.

Explanation:

Unlike the fixed cost which is constant, e.g land; the variable cost changes and are not constant for each new unit of volume. Examples of variable cost includes, sales commission cost. We also have the mixed cost, which is a combination of fixed cost and variable cost.

3 0
3 years ago
Other questions:
  • T-bills are offered in what monetary increment? $1 $10 $100 $1000
    10·1 answer
  • On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,0
    10·1 answer
  • In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of
    15·1 answer
  • The signing of the project portfolio statement signals the transition from the high-level project initiating stage into the more
    12·1 answer
  • The Fed's Federal Open Market Committee
    8·1 answer
  • Success in today's dynamic business environment depends heavily on maximizing the use of Internet-based technologies and Web-ena
    14·1 answer
  • Max and Eli both graduated from the police academy. Max chose to work in a large city with high crime rates, while Eli chose a j
    6·2 answers
  • If the margin of safety is $200,000, fixed expenses are $50,000 and sales revenue is $500,000, what are variable costs?
    7·1 answer
  • Can someone pls help me ASAP due today and I will mark brainlist
    10·1 answer
  • Lemony lemonade has​ 3,200 gallons of lemonade in wip​ inventory, with​ 76% of materials already added. The lemonade is​ 50% thr
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!