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melomori [17]
3 years ago
9

Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of

$1.50 per share. After that, the dividend is expected to increase at a constant rate of 5%. If an investor requires a 12% return on the stock, what is the value of the stock?
Business
1 answer:
Bezzdna [24]3 years ago
4 0

Answer:

The  value of the stock is $28.57

Explanation:

Data provided in the question:

Dividend paid at the end of the year, D1 = $2.00 per share

Increase in dividend = $1.50 per share

Growth rate, g = 5% = 0.05

Required rate of return = 12% = 0.12

Now,

Price with constant Dividend Growth model = D1 ÷ ( r - g )

= $2 ÷ ( 0.12 - 0.05 )

= $28.57

Hence,

The  value of the stock is $28.57

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Larry Bar opened a frame shop and completed these transactions:1. Larry started the shop by investing $40,800 cash and equipment
natita [175]

Answer:

$44,100

Explanation:

Larry Bar

Investment in Cash - Receptionist's salary+Sales of custom frame = Cash account balance

Investment in Cash $40,800

Paid $2,000 Receptionist's salary $2,000

Sales of custom frame $5,300

Hence:

$40,800-$2,000+$5,300

=$44,100

Cash account balance will be $44,100

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3 years ago
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Afina-wow [57]

Answer:

B) channel funds directly from lenders to borrowers.

Explanation:

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Financial markets are the only type of institution that allows the exchange of money from lenders to borrowers without third parties being involved.

6 0
3 years ago
_____ are any aspects of a good or service that a customer must believe in but cannot personally evaluate even after purchase an
34kurt

Answer:

Credence Attributes

Explanation:

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Because the quality of these products or service are unobservant through search or experience some providers tend to charge consumers at a premium for their provision.

3 0
3 years ago
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Answer: B the measure of consequential damages is $100. Because Adam would have a profit of $100 is Ben had not refused to supply the coal.

8 0
3 years ago
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romanna [79]

Answer:

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It becomes that Bill did not name his wife as his beneficiary, hence Mike inherits the entire 342 acres of land after Bill's death.

4 0
3 years ago
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