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Ivenika [448]
3 years ago
10

A stock has a current annual dividend of $6.00 per year, and it is expected to grow by 3% (0.03) a year. It is expected that two

years from now the stock will sell for $90.00 a share. If the interest rate is 5% (0.05), the dividend-discount model predicts the stock's current price should be
Business
1 answer:
yulyashka [42]3 years ago
6 0

Answer:

$93.20

Explanation:

Given the following from the question

Future value of stock = $90

PV Factor = Future Value ÷ (1+ interest rate %)

Hence, we have Present value of stock as => 90 ÷ (1.03) = $87.378640777

Present value of dividends = 6 ÷1.03 = $5.8252427184

Total of present value of stock and dividend =$87.378640777 + 5.8252427184 = $93.20

Hence, in this case, the correct answer is = $93.20

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A firm selling televisions knows from marketing research that when consumers in developing countries reach on average a yearly i
yulyashka [42]

Answer:

That low income can be enough because of either one of these two reasons (or the two at the sime time):

  • A high proportion of subsidized good for low-income earners in developing countries: a consumer making $1,000 per year on average could benefit from subsidized food, housing, healthcare, and even transportation, allowing this person to devote most of his income to other expenses.
  • Cheap credit available: this same person could not have enough money to pay for the television in cash, but could easily obtain a credit with low interest rates, and long-term payments.

5 0
2 years ago
Thomas purchased 200 shares of stock A for ​$23 a share and sold them more than a year later for $ 19 per share. Be purchased 60
Delicious77 [7]

Answer:

Capital gain tax = $1,540.

Explanation:

As per the data given in the question,

For stocks of A  

Profit = (selling price - purchasing price) × units

= ($19 - $23) × 200

= -$800

For stocks of B  

Profit = ($57-$41) × 600

= $9,600

Total profit = profit for stock A + profit for stock B  

= -$800 + $9,600

= $8,800

Therefore, capital gain for both year = $8,800

Tax rate = 35%

Capital gain tax = Capital gain × Tax rate

= $8,800 × 35%

=$3,080

As share holds for more than a year,

So, Capital gain tax = $3,080 ÷ 2 = $1,540.

5 0
2 years ago
Explain how depth affects oxygen content in ocean water.
stira [4]

Explanation:

Ocean warming-driven deoxygenation: Warmer ocean water holds less oxygen and is more buoyant than cooler water. This leads to reduced mixing of oxygenated water near the surface with deeper waters, which naturally contain less oxygen. Warmer water also raises oxygen demand from living organisms.

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5 0
2 years ago
Company send and receive messages daily via email, voice mail, text and traditional memos. A persuasive message occurs when a pe
Burka [1]

Explanation:

Persuasive message:

  1. Cordial, positive communication, with a focus on negotiation and openness to receiving proposals and feedbacks.
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Deliver bad news in business:

  1. Be transparent and communicate all the reasons that led the organization to face the bad news that is being communicated, maintaining a realistic but positive approach to maintain the sense of unity and overcoming of employees.
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8 0
3 years ago
You've told Dan, a new contact, that you're looking for a qualified sales representative. Now you want to find out if there's an
kenny6666 [7]
The answer is B give him your business card
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3 years ago
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