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melamori03 [73]
3 years ago
8

The recent dividend payout by IBM was $3.00. IBM's dividends are expected to grow about 6.5% per year. If your required rate of

return is 17%. What is the expected stock price two years from now. Round the answer to the nearest integer
Business
1 answer:
9966 [12]3 years ago
3 0

Answer:

Answer for question :

The recent dividend payout by IBM was $3.00. IBM's dividends are expected to grow about 6.5% per year. If your required rate of return is 17%. What is the expected stock price two years from now. Round the answer to the nearest integer " is as explained below.

Explanation:

1. the expected stock price two years from now = 3 * 1.065^3/(0.17 - 0.065)  

the expected stock price two years from now = 34.51

2. FV = 0, N = 8, PMT = 288, rate = 4%

use PV funciton in Excel    

value at time 0 = 1939.03

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Answer:

The market value of equity should be used.

Explanation:

Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.

So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.

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A restaurant worker earns a set amount per hour from their employer. They also receive tips from customers. Their earnings most
icang [17]

The restaurant worker's earnings closely resemble that of an employee working on commission plus salary.

<h3>What is commission?</h3>

Commission is additional compensation that's earned based on job performance.

It is an extra payment that is accrued during the course of work and are paid in addition to a base salary.

Hence, the restaurant worker's earnings closely resemble that of an employee working on commission plus salary.

Therefore, option D is the correct answer.

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2 years ago
Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses
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$88.75

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Ted's company has recently reorganized. He has been reassigned into a new role for which he feels unprepared, and he is not sure
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Answer:

These are the options for the question:

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And this is the correct answer:

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Ted is afraid of failing at his new role, he is suffering from fear of failure. This is because Ted was accustomed to completing a set of tasks specific to his previous position in the company.

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In order to have competition in a market economy, there must be at least _____ or more sellers acting independently in a particu
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In order to have competition in a market economy, there must be at least 2 or more sellers acting independently in a particular market.

<h3>What is competition in a market economy?</h3>

competition in a market economy serves as one that  allows multiple individuals  as well as  businesses to use resources efficiently  as well as producing  the cheapest products  without compromising  quality.

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