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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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Generally accepted accounting principles (GAAP) requires the expenses incurred to generate revenues be matched in the same perio
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Answer:

The statement is: True.

Explanation:

The matching principle of the Generally Accepted Accounting Principles (<em>GAAP</em>) states that the expenses a company incurs during a period must match with the revenues those expenses were incurred during the same period. This principle is usually implemented with the accrual accounting method leaving in clear that expenses are incurred to generate profit.

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After the computers dns cache is cleared, where will it most likely look to resolve the domain name the next time you enter ceng
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After the computers dns cache is cleared, where it will most likely look to resolve the domain name the next time you enter cengage.com in your browse to The ISP's DNS server.

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3 0
2 years ago
Rodrigo wanted to buy his wife a pearl necklace for her birthday. Murphy's Jewelry had a necklace he liked for $139, but he boug
White raven [17]

Answer:

a framing bias.

Explanation:

given data

necklace he liked = $139

pearl necklace originally = $173.75

sale for = 20% off

reduced the price = $139

solution

  • Rodrigo is subject to readymade bias. This bias refers to how people’s decisions affect situations, words, or settings. Although both stores have the same price, Pearl’s own stores create a relative factor
  • It showed a high base price and a 20% discount, which made Rodrigo feel like he was making a deal, so he was more inclined to buy the necklace and not at the Murphy jewelry store.
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3 years ago
Describe a real or made up but realistic example of an emotional consumer motive that you or someone you know has experienced. W
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In general, business writing should be _____.
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In general, business writing should be _____.

a.

Easy to read quickly

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