If the Chief Justice of the Supreme Court is part of the majority, he or she gets to write the ______

A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a ra

ArbitrLikvidat [17]

Answer:

Current price of stock =$128.06

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The model is given as

P = D× g/(r-g)

P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend

Cost of equity

The cost of equity can be calculated using the Capital Asset Model (CAPM).

Ke= Rf +β(Rm-Rf)

Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3

Ke=6.5% + 1.3× (1.5)= 8.45%

Stock price

PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668

PV of dividend in year 2 = 3.4× 1.17^2× 1.0845^(-2) = 3.9572

<em>PV of dividend in year 3</em>

This will be done in two(2) steps:

Step 1- PV in year 2 terms

3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651

Step 2- PV in year 0

141.6513913× 1.0845^(-2)= 120.4375

Current piece of stock = 3.668 + 3.957 + 120.4375 = 128.062

Current price of stock =$128.062

5 0

3 years ago

Question 6 of 20

Mashutka [201]

$Hello, ~Allow~me~to~Help~you!$

Answer:

OA.<u> Following the workplace dress code</u>

Explanation:

By Following the workplace regulations or rules they may have will most likely lead to success in the workplace.

Option B. is incorrect because It's important to work with other people or ask for help.

Option C. That is incorrect because it may seem like you are Anti-Social.

Option D. is incorrect because If you have a certain time to be at work and you show up whenever you want there may be consequences.

Hope this Helps you! <33

Have a fantastic day! :P

4 0

1 year ago

Use the drop-down menus to complete the statements. inflation is a measure of how prices . disinflation occurred . the inflation

Bingel [31]

Inflation, Disinflation, and Deflation are related economic terms, as inflation measures price increase, Disinflation is inflation at a slower rate, and the inflation rate in 2014 was 1.5%

<h3>What are Inflation, Disinflation, and Deflation?</h3>

Inflation is the goods and services price increase, Disinflation is the same as inflation but at a slower pace, and Deflation is a decrease in the price of goods and services.

Inflation is measured by an increase in prices
Disinflation occurs when inflation occurs at a slower pace in the short run. it occurred between the years 2008 and 2009.
The inflation rate in 2014 was about 1.5% in the United States.
In 2009 there was a decline in inflation.

Therefore, the above option aptly describes inflation, Disinflation, and Deflation.

Learn more about Inflation, Disinflation, and Deflation here:

brainly.com/question/1699650

8 0

2 years ago

If a gourmet cooking store encourages customers to sample fresh baked apple pie in order to encourage purchases of pie pans and

IceJOKER [234]

Answer:

Sensory retailing.

Explanation:

If a gourmet cooking store encourages customers to sample fresh baked apple pie in order to encourage purchases of pie pans and rolling pins they are engaging in sensory retailing.

In marketing, sensory retailing can be defined as a strategic process which involves the creation of an atmosphere that attracts potential customers and has a positive influence or effect on them.

Generally, sensory retailing involves the process of appealing to the customer's taste, smell, sight, tactile, and olfactory senses, thus, affecting their perception, judgment and behavior positively.

<em>Hence, when properly designed, harnessed and applied, it boost purchasing behaviors, increases sales revenues, improve customer loyalty, and enhances good vibes or mood among end consumers</em>.

5 0

3 years ago

Rochester Corp. holds a 15% equity investment in LaCrosse Inc. Reedsburg Investments holds 45% of LaCrosse’s stock. On October 1

IceJOKER [234]

Answer:

Rochester Corp

Increase

Reedsburg Investments

No effect

Explanation:

Rochester Corp will Increase and Reedsburg Investments will show No effect

Therefore Rochester Corp. should go ahead and use the fair-value method in order to account for its own investment in LaCrosse.

This means the dividend would increase the net income while the Payment of dividends would tend to Increase the investment account on Reedsburg’s balance sheet, but will have or shown no effect on its income statement.

4 0

3 years ago

If the Chief Justice of the Supreme Court is part of the majority, he or she gets to write the _______.