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
Vinvika [58]
3 years ago
5

What is the market value of a stock that paid a dividend of $3.80 last year if the dividend is increasing at 10% annually and th

e required rate of return on the stock is 20%
Business
1 answer:
Papessa [141]3 years ago
7 0

Answer:

The market value of the stock is $41.8

Explanation:

Div 1 = Div 0 (1+r)

=3.80 (1+0.10)

=3.80(1.10)

=4.18

Market value of the stock= Dividend 1 / (r-g)

= 4.18 / 0.2 - 0.1

= 4.18 / 0.1

= $41.8

The market value of the stock is $41.8

You might be interested in
A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sen
horrorfan [7]

Answer:

The correct answer is B) the bullwhip effect.

Explanation:

The bullwhip effect is a phenomenon observed in distribution channels. It refers to a trend of larger and larger changes in inventory in response to changes in customer demand, when one looks at companies at the back of the supply chain for a product. The concept first appeared in Jay Forrester Industrial Dynamics (1961) and is therefore also known as the Forrester effect Since the magnification of the oscillating demand uphill of a supply chain is reminiscent of the cracks of a whip, it was known as the effect bullwhip.

6 0
4 years ago
Refers to the core business process in which an organization researches, develops, and introduces novel, high-quality products q
Delvig [45]

I believe the answer is: new offering realization process

This process includes all efforts conducted by the orgnization in its effort to develop new products for the market. This process is made to ensure that company able to follow the market trend and does not lose its consumers base. It also help the company getting a head start over its competitors in the market

6 0
4 years ago
You want to take a dream vacation in 3.5 years. You plan to save up $5,000 in your vacation sinking fund. Assume an interest rat
Ket [755]
<h3>Answer:</h3>

<h3>Explanation:</h3>

The formula for calculating the Monthly payments P for the sinking fund is as follows:

P\;=\;\frac{A*i}{(1+i)^n-1}

where,

P = Monthly payments to be made

A = Total amount to be accumulated

i = Interest rate for given time period

n = Number of time period

Assuming interest is applied at the beginning of each period.

We are given two scenarios.

<h3><u>Scenario (i) - Deposit is made during the year:</u></h3>

In this scenario, as some of the year is already passed (assume 6 months), to complete the time period of 3.5 years the interest will compound 3 times (as the 0.5 year payments can be adjusted in the remaining part of the first year and no interest is applied on it). Hence, the interest will be applied 3 times.

\therefore P_{(i)}\;=\;\frac{5000*0.08}{(1+0.08)^3-1}\\\\P_{(i)}\;=\;\frac{400}{0.2597}\\\\P_{(i)}\;=\;1540.1676

<h3><u>Scenario (ii) - Deposit is made at the beginning of the year:</u></h3>

For this case, the interest will be applied 4 times to complete the time period of 3.5 years for payment.

\therefore P_{(ii)}\;=\;\frac{5000*0.08}{(1+0.08)^4-1}\\\\P_{(ii)}\;=\;\frac{400}{0.3605}\\\\P_{(ii)}\;=\;1109.6040

3 0
3 years ago
Many performers, like singers, actors, and athletes, get paid large amounts of money. Do you think they earn these amounts or sh
luda_lava [24]

Answer:

no they work for what they have and they work there way to where they are because not everyone can wakeup and be a D-1 football player or a singer those things take time, effort, determination to not give up, and etc. So with all this i think they get payed for what they earn becuase not all singers actors and althletes make the same amount of money!

Explanation:

8 0
3 years ago
Read 2 more answers
Jasper makes a $45,000, 90-day, 6.5% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest
Mice21 [21]

Answer:

The entry should be:

c. Debit Cash $45,731.25; credit Interest Revenue $731.25; credit Notes Receivable $45,000

Explanation:

Jasper makes a cash loan to Clayborn Co.. This is a Notes Receivable of Jasper.

The amount of the loan is $45,000

Tern of the loan is 90-day and interest rate is 6.5%

The interest amount Jasper receives on maturity date:

$45,000 x 6.5% x 90/360 = $731.25

The entry should be:

Debit Cash $45,731.25

Credit Interest Revenue $731.25

Credit Notes Receivable $45,000

5 0
3 years ago
Other questions:
  • CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service depart
    12·1 answer
  • Patrick has an old car and wants to keep his insurance costs down, but he wants coverage in case he damages the property of othe
    15·1 answer
  • The grocery store has bulk pecans on sale, which is great since you're planning on making 8 pecan pies for a wedding. How many p
    11·2 answers
  • Marketing communicators must be good at ________ messages that take into account how the target audience ________ them.
    9·2 answers
  • Able Electronics Company issues a $1,000,000, 8%, 20-year mortgage note on January 1. The terms provide for semi-annual installm
    11·1 answer
  • BC Enterprises' quality control report for August contains the following items. Gathering ,analysis, and reporting quality data
    10·1 answer
  • Discuss the different situations when the communication exists ​
    13·1 answer
  • H) Is necessary to trim fruit plants? if yes Why?<br>​
    12·1 answer
  • Your job includes ordering phone service for new employees. You are considering two phone plans. The first plan charges $23.35 p
    5·1 answer
  • Changes in the technological environment create increases in world wide in all sectors of the economy, creating exciting challen
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!