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
butalik [34]
3 years ago
8

Could I Industries just paid a dividend of $1.62 per share. The dividends are expected to grow at a rate of 20 percent for the n

ext four years and then level off to a growth rate of 4 percent indefinitely. If the required return is 12 percent, what is the value of the stock today
Business
1 answer:
nata0808 [166]3 years ago
4 0

Answer:

Explanation:

Using the dividend growth model = Do(1+g)/Ke-g

Do=1.62$

G=4%

Ke=12%

Do(1+g)/Ke-g  =  2.0736(1+4%)/12%-4%

                      =   1.6848

/8%

                      =   53.916

                 Year Year Year Year Year  

                    0             1             2           3            4  

                          20%  20%  20% 20%  

Dividend             1        1.2      1.44  1.728 2.0736  

Ifninty dividend                                               55.91*  

Total Cashflows 1    1.2     1.44         1.728 55.98  

Pres.Val @12%    1     1.07142 1.14795  1.22995   35.583

     

Value of stock 40.030    

You might be interested in
4. Why would someone choose to remain a nonemployer?
xxMikexx [17]
Cause they dont want to work and rather get a goverment check for playing around
3 0
3 years ago
In a recent year hart corporation had net income of $125,000, interest expense of $30,000, and tax expense of $40,000. what was
makkiz [27]

Net income = $125,000

Interest expense = $30,000

Tax expense = $40,000

Interest times hart corporation earned for the year = ?

First add all the expenses and then divided by interest expense to get interest times.

= ($125,000 + $30,000 + $40,000) / $30,000

= $195,000 / $30,000

<span>= 6.5 </span>

4 0
3 years ago
Gerard, a Nevada real estate licensee, has been advertising his services online to California citizens. He sells resort property
lora16 [44]

Answer:

No, Gerald should not be advertising properties to California citizens since that is considered soliciting. In order for Gerald to legally be able to solicit California citizens, he should hold a California real estate license. A Nevada license is not valid in California (nor any other state).

7 0
3 years ago
A researcher developing scanners to search for hidden weapons at airports has concluded that a new scanner isis significantly be
Masteriza [31]

There is not enough information in this question to answer it. You cannot determine significance with just the alpha value. You need the actual test statistic (p-value) to determine this.

If the p-value is less than the alpha value, you reject the null hypothesis (the there is no difference).

3 1
3 years ago
Lusk Corporation produces and sells 15,800 units of Product X each month.
earnstyle [38]

Answer:

a. decrease by $58,800 per month

Explanation:

The computation is shown below;

<u> Particulars                                 Amount </u>

Contribution from product X   $94,800 ($28 - $22) × 15,800 units

Less: Fixed cost                        -$108,000

Net loss avoided                        -$13,200

Non-avoidable fixed cost            $72,000

The Total cost in case the product fall $58,800

Hence, the correct option is a.

5 0
3 years ago
Other questions:
  • Moroni Industries has the following inventory information. July1Beginning Inventory40 units at $120 5Purchases240 units at $112
    12·1 answer
  • When there is excess demand for a product in a market, a. price must be above the equilibrium price. b. producers will reduce ou
    15·1 answer
  • Choose the organization listed below that takes a proactive role in developing recommendations and prototype technologies relate
    14·1 answer
  • You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a
    7·1 answer
  • Taylor, the human resource manager at a large manufacturing firm, wants to fill an entry-level management position with an inter
    10·1 answer
  • Scott Walker Company reported the following data for the past​ year: Net sales ​$460,000 Purchases ​$230,000 Beginning Inventory
    5·2 answers
  • __ strategy customizes the product offering to local demands and increases the value of that product in the local market. A tran
    15·1 answer
  • Easy career question for you
    7·1 answer
  • Which one of the following alternatives reprsents a source of stress in the work place?
    6·1 answer
  • Neeraj carves wooden squirrels, which he sells to benefit the local nature center. he charges $30 for each squirrel. squirrels a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!