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
Dominik [7]
3 years ago
15

Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.30. It expects to grow at a constant rate of 2

% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Do not round intermediate calculations. Round your answer to the nearest cent.
Business
1 answer:
blondinia [14]3 years ago
6 0

Answer:

Current price is equal to $16.575

Explanation:

It is given common dividend D_0=1.30

Growth rate = 2% = 0.02

Required rate of return = 10% = 0.1

Dividend paid in next year

D_1=D_0(1+g)=1.30\times 1.02=1.326

Current price is given by P_0=\frac{D_1}{R_e-g}

P_0=\frac{1.326}{0.1-0.02}=16.575

Therefore current price is equal to $16.575

You might be interested in
3. Which one of the following statements is correct concerning the NYSE? a.) The publicly traded shares of a NYSE-listed firm mu
Gwar [14]

Answer:

c.) The listing requirements for the NYSE are more stringent than those of NASDAQ.  

Explanation:

The correct statement is c. NASDAQ and NYSE both is American stock exchange where share are traded. NYSE is world’s largest stock exchange in terms of market capitalization of listed companies and NASDAQ is second largest stock exchange. The listing requirements for NYSE are stringent and tough. A firm should have atleast $40 million market value of public shares to be listed on NYSE.

7 0
3 years ago
Read 2 more answers
For your speech to be effective, you must carefully consider what your specific
Reil [10]

Answer:

A. Specific Purpose

Explanation:

This is 101 for anyone who wants to write an effective speech, knowing what you want to accomplish and what you want the audience to do by the end of your speech is the idea behind this.

8 0
3 years ago
Firm A currently dumps 157 tons of chemicals into the local river. Firm B currently dumps 183 tons of chemicals into the local r
Kruka [31]

Answer:

$20,670

Explanation:

                                               Firm A                   Firm B

Actual Dumping                         157                        183

Pollution Permits Allotted          <u> 11  </u>                        <u>  11  </u>

Reduction Required                   146                        172

Cost of Dumping 1 ton              $160                      $65

As the cost of dumping to Firm A is $160 which is higher than the marginal cost of dumping of Firm B which is $65, so it is better that Firm B take benefit from it by selling it at $65. So now total tons require dumping is 318 tons (146 + 172).

Total cost of reducing pollution = 318 tons * $65 = $20,670

3 0
3 years ago
When goods are produced at the lowest possible cost, an economy is said to have achieved:?
kondor19780726 [428]
When goods are produced at the lowest possible cost an economy is said to have achieved?
Answer: production efficiency
4 0
3 years ago
The fundamental purposes of communication are to provide information and instructions, to influence others, and to ________ acti
SSSSS [86.1K]
You don't communicate to convey activities, or to integrate activities. We can, therefore, eliminate answers "a," "b," and "e." 

So is our purpose to discuss or organize an activity? Either answer fits. We discuss activities to gather the opinions of others regarding said activities. But discussing is, itself, a form of communicating, it is not an outcome. The other points listed are outcomes "we provide... influence... [through communication]." Therefore, the answer must be "c. organize".
3 0
3 years ago
Other questions:
  • Ted owns a small florist shop. Since his business is booming, his realizes he will soon need one more delivery van. He decides h
    6·1 answer
  • It is advised to use the ___ rule, which allows enough space between your vehicle and other vehicles in traffic?
    13·1 answer
  • The American chocolate wafer and cream cookie most of us know (and love?) is made by Nabisco and sold under the name
    10·1 answer
  • By satisfying the customer service factor of ________, the distributor will ensure that deliveries of Hope Springs' bottled wate
    13·1 answer
  • Warranty costs in the amount of $500,000 were recorded on the 2018 Income statement. However, the warranty tax deduction is not
    10·1 answer
  • At an activity level of 8,400 units in a month, Braughton Corporation’s total variable maintenance and repair cost is $697,284 a
    13·1 answer
  • What is universal default?
    5·1 answer
  • Why is it important for business professionals to take an active role in developing and managing information systems? A. They kn
    8·1 answer
  • Quick assets (cash, short-term investments, and current receivables) divided by current liabilities is the: Multiple Choice Curr
    15·1 answer
  • because it produces and distributes a specific type of cultural product for public consumption to profit financially, a video ga
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!