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Vedmedyk [2.9K]
3 years ago
9

A stock is expected to pay a dividend of $0.5 at the end of the year (D1=0.5), and it should continue to grow at a constant rate

of 7% a year. If its required return is 12%, what is the stock’s expected price 5 years from today?
Business
2 answers:
Alex_Xolod [135]3 years ago
7 0

Answer:

You can Derive the answer like this. Using simple dendritic growth model.

$0.5 / (12% - 7%) = $10

Now to get the expected price 5 years from today, do this: $10 x (1 + 7%)^5 = $14.03

What we did was we used the annual growth rate and calculates the growth over the next 5 years.

Explanation:

vlada-n [284]3 years ago
3 0

Answer:

The stock’s expected price 5 years from today is $14.03

Explanation:

Today's stock price: $0.5 / (12% - 7%) = $10

Because the stock should continue to grow at a constant rate of 7% a year, the stock’s expected price 5 years from today: $10 x (1 + 7%)^5 = $14.03

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Answer:

Option B What businesses a firm should be in and how the corporate office should manage its group of businesses

Explanation:

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Explanation:

<h2>Machine A</h2>

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= $2,315.97

Present Value of Costs;

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<h2>Machine B</h2>

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Present Value of costs

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5 0
3 years ago
Acme, Inc., which manufactures the fireworks that municipal governments buy to put on their annual fireworks shows on the Fourth
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Answer:

Reshoring.

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Reshoring is the process of returning the production and manufacturing of goods back to the company's original country. Reshoring is also known as onshoring, inshoring or backshoring.

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2 years ago
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Daniel [21]

Answer:

Weighted-average inventory costing method Ending Inventory = $ 9666.67= $ 9667

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January 31  Purchases          300             $ 60        $ 18,000

February 28   Purchases       150             $ 25          $3750

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Weighted-average inventory costing method=  Total Cost/ Total Units=

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Ending Units =  Purchases-Sales = 450-250= 200

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200 units at 448.33=  $ 9666.67= $ 9667

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Your family should call your local Better Business Bureau. Hope this helps.
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