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Lelechka [254]
3 years ago
15

I NEED HELP FAST I WILL GIVE BRANLIEST

Business
1 answer:
Sergio [31]3 years ago
4 0
Consumers, Producers and the product market
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The dividend for Should I, Inc., is currently $1.40 per share. It is expected to grow at 16 percent next year and then decline l
nexus9112 [7]

Answer:

The most you would pay per share is $18.90 price per share today.

Explanation:

Note: See the attached file for the calculation of present values for year 1 to 3 dividends.

From the attached excel file, we have:

Previous year dividend in year 1 = Dividend just paid = $1.40

Total of PV of dividends from year 1 to year 3 = $4.50720663265306

Year 3 dividend = $1.55542091836735

Therefore, we have:

Year 4 dividend = Year 3 dividend * (100% + Dividend growth rate in year 4) = $1.55542091836735 * (100% + 4%) = $1.61763775510204

Price at year 3 = Year 4 dividend / (Rate of return - Perpetual dividend growth rate) = $1.61763775510204 / (12% - 4%) = $20.2204719387755

PV of price at year 3 = Price at year 3 / (100% + Required return)^Number of years = $20.2204719387755 / (100% + 12%)^3 = $14.3925325274857

Price per share today = Total of PV of dividends from year 1 to year 3 + PV of price at year 3 = $4.50720663265306 + $14.3925325274857 = $18.90

Therefore, the most you would pay per share is $18.90 price per share today.

Download xlsx
5 0
3 years ago
Wyatt Oil has 8 million shares outstanding and is about to issue 10 million new shares in an IPO. The IPO price has been set at
dexar [7]

Answer: 141 million

Explanation:

8 0
3 years ago
The Shady Farm Milk Company can process milk at a fixed rate of 7,200 gallons/hour. The company’s clients request 91,000 gallons
kogti [31]

Answer:

62,200 gallons of milk are still at the queue to be processed by noon

Explanation:

Step 1: Determine quantity of milk processed by noon

Quantity of milk=processing rate per hour×number of hours

where;

processing rate=7,200 gallons/hour

number of hours=8 am-noon, 12-8=4 hours

replacing;

Quantity of milk=(7,200×4)=28,800 gallons

The quantity of milk processed by noon=28,800 gallons

Step 2: Determine total quantity of order

Total quantity=91,000

Step 3: Determine remaining quantity to be processed at noon

Remaining quantity=total quantity-quantity already processed by noon

where;

total quantity=91,000

quantity already processed by noon=28,800

replacing;

Remaining quantity=(91,000-28,800)=62,200 gallons

62,200 gallons of milk are still at the queue to be processed by noon

6 0
4 years ago
If you had $1,000 to invest into the following funds, which one would have the highest value (not including any fees) at the end
DochEvi [55]
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8 0
3 years ago
Green Leaf Inc., a small firm, is finding it difficult to offer its employees most of the benefits that large firms can. Therefo
vladimir2022 [97]

Answer:

Cost Containment

Explanation:

The reason is that the cost is the main factor when the the market players have equivalent capabilities and the firm then tries to manage the overall cost of the organization so that it can offer the product at the discount to the competitor's product. This lower cost gives the competitors advantage which the company utilizes in their best interest.

3 0
4 years ago
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