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sineoko [7]
4 years ago
13

a mature manufacturing firm. The company just paid a dividend of $8.65, but management expects to reduce the payout by 5 percent

per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today?
Business
1 answer:
-BARSIC- [3]4 years ago
4 0

Answer:

$48.34%

Explanation:

Data provided in the question

Growth rate = 5%

Required return = 12%

Dividend = $8.65

Based on the above information,

The computation of the current price is shown below:-

Current Price = Dividend × (1 + Growth Rate) ÷ (Required Return - Growth Rate)

= $8.65 × (1 + (-5%)) ÷ (12% - (-5%))

= $48.34%

Therefore for computing the current price we simply applied the above formula.

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There are __ in every economy that are used to produce the goods and services that people want and need
d1i1m1o1n [39]
Answer:
limited resources
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Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, truck
Shalnov [3]

Answer:

a. volatility

Explanation:

From the question, we are informed that "Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. In case of Doing this it helps Toyota manage the volatility of industrial demand.

volatility of industrial demand do occur where there is uncertainty as far as demand is concerned in the consumer products , as a result of this most firms to catch up with compitition, growing their sales an lot more , so in this case Toyota still continues to manufacture its traditionally fueled cars, trucks, and SUVs even though there is Mirai for the U.S. market.

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3 years ago
if demand for overnight funds in the graph should increase by $50 billion at each and every point on the demand curve, but the f
krek1111 [17]

Answer:

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Explanation:

3 0
1 year ago
31. In the United States, men most commonly have a longer life expectancy than women.
Minchanka [31]
I believe it’s False, it might be wrong though
5 0
3 years ago
Read 2 more answers
Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,750,000, and a current st
astra-53 [7]

Answer:

a. $12.08 per share

Explanation:

For computing the next year stock we have to do the following calculations  

Current Earning per share  = Net Income ÷ Number of Common Shares Outstanding

= $9,750,000 ÷ 5,500,000 shares  

= $1.77

Current Price Earning ratio = Current stock price ÷  Current EPS

= $14.74 ÷ $1.77

= 8.33

Now Next year earning per share = $9,750,000 ×  1.25 ÷ 8,400,000 shares = $1.45

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= $12.08 per share

3 0
3 years ago
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