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OleMash [197]
3 years ago
10

Reddick Enterprises' stock currently sells for $35.50 per share. The dividend is projected to increase at a constant rate of 5.5

0% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today? $37.86 $38.83 $39.83 $40.85 $41.69
Business
1 answer:
Shalnov [3]3 years ago
4 0

Answer:

E. $41.69

Explanation:

We know,

Value of stock (P_{0}) = \frac{D_{1}}{k_{s} - g} [In case of constant growth model]

D_{1} = Next year or expected dividend

k_{s} = required rate of return

g = growth rate = 5.50%

However, as there is no information regarding expected dividend, we will use the alternative formula to calculate the stock's expected price 3 years from today.

P_{3} = P_{0} × (1 + g)^{3}

Here, current stock price, P_{0} = $35.50

Therefore, P_{3} = $35.50 × (1 + 0.0550)^{3}

P_{3} = $35.50 × 1.1742

Stock's expected price 3 years from now = $41.69 (rounded to two decimal places)

Therefore, option E is the answer.

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Two neighbors, Molly and Sandy, are separated by a white picket fence. Each neighbor has a garden that grows tomatoes and pepper
zhannawk [14.2K]

Answer:

The answer is "the third choice".

Explanation:

In this question, the picket fence use for separating the two neighbors, Molly and Sandy, which is growing neighbor has both a tomato or pepper garden. although Molly was a more powerful grower with peppers, she would sell them to Sandy in return with tomatoes, almost as Molly and Sandy profit through trade.

5 0
3 years ago
The owner of a collection of old anvils lent it to the local museum and hired professional movers to transport the anvils to the
Kaylis [27]

Answer:

Neither nominal damages nor punitive damages.

Explanation:

Nominal damage is defined as money from a defendant that is awarded to a plaintiff for a legal wrong. The amount awarded does not meet up to the financial loss incurred.

Punitive damage is the type that is awarded to punish the defendant for an injury or wrong done to a plaintiff. This is also called exemplary damages.

In the given scenario the owner will not be able to recover either punitive or nominal damages from the movers.

This is because movers used a rope and pulley apparatus to lift the anvils on the outside of the building to a second-story window. This was aimed at not harming anyone within the building.

Also when it fell the anvil was not even dented.

So there was no basis for the negligence charge as there was no injury inflicted.

8 0
3 years ago
A dishwasher uses 700 watts each time it is run. the cycle takes one hour. it is run 150 times per year. how much energy does it
sashaice [31]
<span>To first solve this problem, we have to set up ratios based on the data given. First, we know that the dishwasher use rate is 700 watts/run. Next, we know 1 hr/run. Finally, we know there are 150 runs/year. To calculate how much energy per year, we arrange the ratios to give a final answer of watts/year. Doing this we get the following: 150 runs/year * 700 watts/run = 105,000 watts/year which is also equal to 105 kw/year. The ration of 1 hour per run does not make a difference in this question and is not needed for the final answer.</span>
3 0
3 years ago
During the current year, Martin purchases undeveloped land as an investment. Martin intends to rent the land as pastureland and
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Answer:

D) $4,200

Explanation:

Martin's expenses on land = taxes of $2,800 + mortgage interest of $900 a+ liability insurance of $500 = $4,200

6 0
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Sales revenue less cost of goods sold is called
Kruka [31]

This is net profit, which is the revenue earned after costs are deducted.

6 0
4 years ago
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