1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andrezito [222]
4 years ago
11

Valorous Corporation will pay a dividend of $ 1.75 per share at this​ year's end and a dividend of $ 2.35 per share at the end o

f next year. It is expected that the price of​ Valorous' stock will be $ 40 per share after two years. If Valorous has an equity cost of capital of 8​%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock​ today?
Business
2 answers:
IgorLugansk [536]4 years ago
8 0

Answer:

The maximum price that a prudent investor would be willing to pay for a share of Valorous stock​ today is $37.92

Explanation:

In order to calculate the maximum price that a prudent investor would be willing to pay for a share of Valorous stock​ today we would have to use the following formula:

Current price=future dividends*present value of discount factor(8%, time period)

Therefore, current price= $40/1.08^2 + $2.35/1.08^2 + $1.75/1.08 =

current price=$34.29+$2,01+$1,62

current price=$37.92

The maximum price that a prudent investor would be willing to pay for a share of Valorous stock​ today is $37.92

Svetach [21]4 years ago
4 0
In your calculator press 8 percent times $1.75. $1.75 take away the answer then do 8% times $2.35. 2.35 take away the answer. 8 percent times 40 dollars. 40 dollars take away the answer. You plus the, or take away the 3 answers. That is your answer for the question.
You might be interested in
Your boss has asked you to implement a non-disruptive and incremental approach to ensure business process excellence. What kind
Vesnalui [34]

Answer:

I would propose a business process improvement (BPI) where management will analyze business procedures and try to determine which ones can be improved and how they should be improved. The advantage of using BPI is that it focuses on organizing work around business processes and not individual tasks which makes it non-disruptive, and it is also incremental in nature.

5 0
4 years ago
Which document must the borrower receive at least three days before the signing appointment?
sergiy2304 [10]

The document  the borrower must receive at least three days before the signing appointment is: Closing Disclosure.

Closing disclosure is a loan document that contains all the information about the what loan entails.

This closing disclosure tend to contain the following:

  • The loan terms
  • Transaction details
  • Closing information
  • Projected payments
  • Closing costs
  • Summary of loan transaction etc

Closing disclosure document must be received by the borrower at least three days before the borrower sign the appointment so as to give  the borrower time to go through the document or to review the documents and have good understanding of  the loan terms and condition before signed the appointment.

Inconclusion the document  the borrower must receive at least three days before the signing appointment is: Closing Disclosure.

Learn more about closing disclosure here:brainly.com/question/4375643

5 0
2 years ago
g If the economy experiences economic contraction, the government can combat this with an Group of answer choices increase in go
Charra [1.4K]

Answer:

increase in government purchases

Explanation:

If there is a contraction in the economy, the government should conduct expansionary policies to increase money supply.

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

5 0
3 years ago
A private accountant is an accountant whose services may be hired on a fee basis by individuals or business firms. Group of answ
koban [17]

Answer:

TRUE

Explanation:

A private accountant is an individual that provides a select and personalized set of accounting services on hire which may sometimes be exclusive to one client. Clients are usually individuals with high net worth or big corporations.

A private account may be an employee of the client or may operate as an independent accountant, with the later being the case most times.

8 0
3 years ago
Read 2 more answers
Prance, Inc., earns pretax book net income of $1,648,500 in 2018. Prance acquires a depreciable asset that year, and first-year
jeka57 [31]

Explanation:

The computation is shown below:

Given that

Earns pretax book net income = $1,648,500

Amount exceed = $164,850

U.S tax rate = 21%

Earns After tax rate of return on capital = 8%

So, the calculations are

Total Income Tax Expenses

= $1,648,500 × 21%

= $346,185

Current Income Tax expense = ($1,648,500 - $164,850) × 21%

= $311,566.50

And, the Deferred Income Tax Expense = $164,850 × 21%

= $34,618.50

8 0
3 years ago
Other questions:
  • Jamal has been tasked with putting together a new team for a new Starbucks project line. As Jamal thinks through the components
    14·1 answer
  • A part time landscaping made $8996.32 last year. If she claimed herself as an exemption for $3650 and had a $5700 standers deduc
    13·2 answers
  • Jan vermeer's woman holding a balance is a perfect example of ____________.
    13·1 answer
  • Altruon Inc., a manufacturing company, has production facilities in three different geographical locations. Production managers
    12·1 answer
  • The structure of IASB
    15·1 answer
  • Performance OverArmour Co. manufactures and sells clothing, shoes, and athletic equipment. Performance incurred substantial loss
    14·1 answer
  • How do social security taxes differ from other forms of taxation?
    14·1 answer
  • Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe
    14·1 answer
  • Marian is a working mother with two sons. On weekdays, Marian is hard pressed for time and squeezes just enough time to grab som
    7·1 answer
  • Company manufactures luggage sets. sells its luggage sets to department stores. expects to sell luggage sets for each in and lug
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!