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barxatty [35]
3 years ago
6

Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate

of 6.50% per year in the future. The company's beta is 1.70, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?
Business
1 answer:
alisha [4.7K]3 years ago
8 0

Answer:

$9.7408

Explanation:

For computing the current stock price, first we have to determine the cost of equity which is shown below:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.5% + 1.70 × (10.50% - 4.5%)

= 4.5% + 1.70 × 6%

= 4.5% + 10.2%

= 14.7%

Now the current stock price would be

Cost of equity = Next year dividend ÷ current stock price + growth rate

14.7% = $0.79875 ÷ current stock price + 6.5%

14.7% - 6.5% = $0.79875 ÷ current stock price

8.2% = $0.79875 ÷ current stock price

So, the current stock price would be

= $9.7408

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AveGali [126]

Answer: Mass communication, and Journalism are the professions that advertising supports.

Advertising helps all forms of businesses

Explanation: Advertisement involves sending out information about a product/services an organization provides to it's target market. Advertisement has several forms such as the use of radio broadcast, televised adverts, posters, billboards, social media adverts etc.

Advertising has created a career for individuals in the area of Mass communication and journalism.

8 0
3 years ago
In the context of electronic communication, _____ involves indirect form of disrespect.
Contact [7]

In the context of electronic communication, <u>passive incivility</u> involves indirect form of disrespect.

Passive incivility involves indirect forms of disrespect through the context of electronic communication which are not replying to emails, using emails for time-sensitive messages, not acknowledging receipt of emails.

Passive incivility has its own impact in an individuals life. As this incivility is indirect there is not much behavior noticed. Thus, here the factor of ignorance plays an important role. For instance, when a person sends a disrespectful email, and so here it is hard to understand tone via email and you can’t see the person's body language.

Hence, passive incivility involves indirect form of disrespect.

To learn more about incivility here:

brainly.com/question/13939392

#SPJ4

3 0
2 years ago
Direct Method Question (2026, Current Period): 2026 2025 A/R 49,000 23,000 Prepaid Insurance 15,000 3,000 Salaries Payable 13,00
hammer [34]

Answer:

$49,000

Explanation:

Missing<em>"Cash Event => Cash Paid for Salaries Second Number => _____ __?___, ______ ______ ______"</em>

<em />

Cash paid for salaries (using direct method)

Particulars                                                           Amount

Opening salaries payable                                  $5,000

Add: Salaries expense for the current year      $57,000

Less: Closing salaries payable                           <u>$13,000</u>

Cash paid for salaries during current year     <u>$49,000</u>

4 0
3 years ago
Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year. At the end of th
FromTheMoon [43]

Answer: 4%

Explanation:

From the question, we are informed that Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year and that at the end of the year, retiree benefits paid by the trustee were $28 million and cash invested in the pension fund was $32 million.

Based on the above scenario, the percentage rate of return on plan assets goes thus:

Opening balance of plan assets 1200

Add:- Actual return = 48

Add:- contributions = 32

Less :- retiree benefits = -28

Closing balance of plan assets = 1252

It should be noted that the actual return is the balancing figure which is calculated as:

= 1252 + 28 - 1200 - 32

= 48

The percentage rate of return on plan assets will now be:

= 48/1200

=0.04

= 4%

4 0
3 years ago
Gwen inherited 100 shares of supershoes stock when her mother died on october 21, 2015; the fair market value of the stock was $
Dafna1 [17]

Answer: Gwen should report a $3,000 long-term capital gain in her income tax return.

In this question the price paid by Gwen’s mother for the shares is irrelevant because of her death.

The stock’s fair market value ($20) when Gwen inherited the shares (21st October 2015) is Gwen stepped up value.

Gwen’s gain from selling the shares is:

Gain / (Loss) = (Selling Price per share - Stepped up value per share) * Number of shares

Gain = (50 - 20) *100

Gain = $3,000

Gwen inherited the shares on (21st October 2015) and held the shares until (3rd july 2017), so she held the shares for more than one year after inheriting it.  So, she will report a long-term capital gain on her income tax return.

5 0
3 years ago
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