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Zolol [24]
3 years ago
12

Dividends-R-Us, Corp. is paying a dividend of $3 a share today. It is expected that the company will continue its policy of incr

easing its dividend 8% a year every year. If you require a 14% rate of return to invest in this company, what is the maximum amount you would be willing to pay for a share of the company’s stock?
Business
1 answer:
leonid [27]3 years ago
5 0

Answer:

Amount for each stock to be paid at maximum = $54

Explanation:

Using Dividend growth model, we have,

P_0 = \frac{D_1}{K_e - g}

Where P_0 = Expected price of share today

D_1 = Dividend to be paid at this year end

= D_0 + g

K_e = Required return on investment

g = Growth rate

Therefore,

D_1 = = $3 + 8% = $3.24

P_0 = \frac{3.24}{0.14-0.08}

P_0 = $54

Therefore, current price for this share or sock to be paid = $54 per share.

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1. Alejandro and Roger are working on a group project for class that requires writing a paper and designing charts to explain th
Bezzdna [24]

Answer:

Alejandro´s opportunity cost is 2/3 of a chart.

Roger´s opportunity cost is 1/2 of a chart.

Explanation:

The cost of opportunity represent the benefits that you misses out on when choosing one alternative over another.  

In this case ,  we can say that Alejandro and Roger can produce 2 product.  And if they produce one ,  they loose the possibility of producing the other.

We can Illustrate this situation with a production possibility frontiers graph and  if we increase  the quantity produced of one good,  will  decrease the other, because the limited resources.  

Alejandro produce 3 three pages of the paper in the same time it takes him to create two charts. We use cross multiplication to get  how many charts Alejandro produce at the same time he produce a single page

1___x

3___2 so x= 1x2/3

So ,  in the time he produce a single page of the essay,  he could produce 2/3 of a chart. This is the cost opportunity.

Roger can write two pages of the paper in the same time he can produce a single chart. So,  in the time he produce a single page of the essay he could make half of a chart.  

Download xlsx
3 0
3 years ago
Match the example with the type of individual difference and advantage it shows.
inna [77]

Answer:

Sergey likes to play soccer in his free time = Hobbies

Scott's parents moved from the U. S. to Australia = Background

Bihn wants to make enough money to send his children to school = goal

Yolanda us outgoing and able to make friends quickly = Ability

Cheyenne is currently working as a junior dance teacher in a big studio, to learn what she would need to know when she opens her own someday = experience

Melanie cares about fitness and the outdoors so she often participates in active outdoor activities like biking and mountain climbing = Lifestyle

Amandos favourite subject in school is world history = interest

3 0
3 years ago
A supervisor finds the mean number of miles that the employees in a department live from work. He finds and . Which statement mu
MrMuchimi

Complete Question:

A supervisor finds the mean number of miles that the employees in a department live from work. He finds x=2.9 and s=3.6. Which statement must be true?

z376 is within 1 standard deviation of the mean.

z37 is between 1 and 2 standard deviations of the mean.

z37 is between 2 and 3 standard deviations of the mean.

z37 is more than 3 standard deviations of the mean.

Answer:

z37 is between 2 and 3 standard deviations of the mean.

Explanation:

Standard deviation is a way of measuring of how much the value sample varies or disperses. A low standard deviation means that the values are near the mean value of the set, whereas a high standard deviation implies that the values are distributed over a wider range.

In reasonably average data sets, the values reflect about 68 per cent of the sample within 1 standard deviation from the mean; about 95 per cent in 2 standard deviations; and about 99.7 per cent within 3 standardized deviations.

6 0
3 years ago
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In general, term loans can be created more quickly than bond issues because they (1) tend to be negotiated directly with the len
swat32

Answer:

The correct answer is letter "A": True.

Explanation:

Term loans are those where individuals or organizations request a certain amount of money from a financial institution with the promise the individual or institution will be in charge of a series of periodical payments (principal + interest) to cover the debt.

<em>Term loans are privately negotiated between borrowers and lenders, offering the advantage of speed because there is no need for filings with the Securities and Exchange Commission (SEC) or other regulatory entities to request them.</em>

4 0
3 years ago
What does an investment bank do?
kow [346]
<span>An investment bank is a financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities.</span>
7 0
4 years ago
Read 2 more answers
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