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
kodGreya [7K]
3 years ago
15

Horseshoe Stables is losing significant market share and thus its managers have decided to decrease the firm's annual dividend.

The last annual dividend was $.86 a share but all future dividends will be decreased by 3.5 percent annually. What is a share of this stock worth today at a required return of 17.8 percent
Business
1 answer:
Naya [18.7K]3 years ago
4 0

Answer:

$3.90

Explanation:

using the discount model we can calculate the stock price:

stock price = [dividend x (1 - g)] / (RRR + g) ⇒ since the growth rate is negative, we need to change additions for subtractions and vice versa.

stock price = [$0.86 x (1 - 3.5%)] / (17.8% + 3.5%) = ($0.86 x 0.965) / 0.213 = $0.8299 / 0.213 = $3.90

You might be interested in
Exercise 8-8 Budgeted Income Statement [LO8-9] Gig Harbor Boating is the wholesale distributor of a small recreational catamaran
maks197457 [2]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Budgeted unit sales 700 Selling price per unit $ 2,070 Cost per unit $ 1,605 Variable selling and administrative expense (per unit) $ 60 Fixed selling and administrative expense (per year) $ 200,000 Interest expense for the year $ 23,000

Sales= 1,449,000 (+)

COGS= 1,123,500

Gross profit= 325,500

Selling and administrative= (60*700)+200,000= 242,000

Interest expense= 23,000

Net operating profit= 60,500

5 0
2 years ago
Entries to Write Off Accounts Receivable Creative Solutions Company, a computer consulting firm, has decided to write off the $1
Romashka [77]

Answer:

A. Debit Bad Debt Expense 13780

    Credit Accounts Receivable Wil Treadwell 13780

B. Debit Allowance for Doubtful Accounts 13780

    Credit Accounts Receivable Wil Treadwell 13780

Explanation:

7 0
3 years ago
Jennifer's company wants to increase online sales of a featured product by connecting with users who are actively researching si
PilotLPTM [1.2K]
<h3>Benefit from Google Search campaign </h3>

Explanation:

Google Search Campaigns is one of the most famous types of online advertising.

Google Search Campaigns enable Jennifer to show advertising in Google Search's search pages, which is a show ad in search results. It is helpful when you know that a search engine starts with 93 percent of online interactions. Jennifer can choose the keyword which activates search and show an ad when running a Google Search campaign.

Depending on how well Jennifer ad is optimized, and how much she bidding for the ad, she can impact how high the ad displays in the search network listings.

4 0
2 years ago
Your son, Jason, left his skateboard at the bottom of your basement stairs. While going downstairs, you stepped on the skateboar
Zepler [3.9K]

Answer:

$1,000

Explanation:

No fault insurance basically protects you and your family from small accidents by paying your medical bills regardless of who is at fault. This type of policies applies to car or house insurance.

In this case, the accident was caused by Jason but since who is responsible is not important in this type of policy, then it should cover up to its maximum limit.

7 0
3 years ago
The ________ is used in part used to inform prospective buyers about the benefits of the product. a. promotional mix b. promotio
Papessa [141]

Answer:

The correct answer is D that is Marketing Mix

Explanation:

Marketing Mix is the term which is stated as the set of tools, actions or the tactics, which a business, firm or company uses in order to promote the product in the market.

It is used in order to inform or provide the knowledge to the buyers or the prospective clients regarding the product uses, features as well as benefits.

7 0
3 years ago
Other questions:
  • For each of the following transactions for New Idea Corporation, give the accounting equation effects of the adjustments require
    13·1 answer
  • In the absence of market failures, when the government taxes market participants, the effect is to move the market: Group of ans
    11·1 answer
  • Business had been humming along just fine until the recession hit. Peterbilt adjusted by laying off employees until the recessio
    9·1 answer
  • Describe the conventional view of the relationship between the supply of a mineral resource and its market price. What are five
    10·1 answer
  • On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of l
    7·1 answer
  • Show Me How On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common s
    5·1 answer
  • The accounts receivable turnover is computed as __________ divided by __________.sales; accounts receivablesales; average accoun
    14·1 answer
  • Matching. A shopper is in the grocery store, trying to decide whether to buy apples of a particular variety. Identify the food p
    14·1 answer
  • 1. _____ ensures costs are covered and a profit is made but also affects customer's motivation to buy.
    12·2 answers
  • How to report illegal immigrants at work anonymously?.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!