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
Evgen [1.6K]
3 years ago
9

Creme Bakery just paid an annual dividend of $2.20 a share and is expected to increase that amount by 2.2 percent per year. If y

ou are planning to buy 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 14 percent at the time of your purchase?
Business
1 answer:
alekssr [168]3 years ago
7 0

Answer:

$19.47

Explanation:

The computation of the price paid for share is shown below:

= Year second dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2.20 + $2.20 × 2.2%

= $2.20 + $0.0484

= $2.2484

In the year 2 , it is

= $2.2484 × 1.022

= $2.2978648

And, the required rate of return is 14%

Plus the growth rate is 2.2%

So, the price paid for the share is

= ( $2.2978648) ÷ (14% - 2.2%)

= $19.47

You might be interested in
In the long run the most important factor that shifts the aggregate supply curve is?
Eddi Din [679]

In the long run, the most important factor shifting the SRAS curve is productivity growth.

<h3>What do you mean by productivity growth?</h3>

Productivity—in economic terms—is how much output can be produced with a given quantity of labor. One measure of this is output per worker, or GDP per capita.

Since 1947, the U.S. corporate sector has been able to create nine times more goods and services with only a little increase in labor hours thanks to productivity gains. An economy may create and consume more goods and services for the same amount of effort when productivity is growing.

Productivity is a way of thinking and a condition of being. Being effective entails acting in every situation as we actively choose to and not as we feel pressured to by external factors. Being productive requires adopting a mindset of constant development.

Learn more about productivity growth here

brainly.com/question/11764536

#SPJ1

5 0
1 year ago
When practicing skills you should focus on _____________?
sesenic [268]
I believe the answer id D) all of the above.

the reason for this is because when you want to learn a skill you want to be able to actively know the skill and use it at will. you also need to be able to do it in an efficient manner and you also need to understand why you need this skill and why it is important for you to learn it.

i really hope this helped and have a nice day :)
 <span />
5 0
3 years ago
Read 2 more answers
Find the product of 28 and 97.
Inga [223]
The product of 28 and 97 is 2716
8 0
2 years ago
Read 2 more answers
In general, how would your best friend describe you as a risk taker?
earnstyle [38]

Answer:

answer is B.............

6 0
2 years ago
Which of the following is not considered when you are calculating cost of quality?
enyata [817]

Answer: The following is not considered when you are calculating cost of quality:<u><em>  The cost of gaining formal acceptance of project deliverable.</em></u>

Cost of Quality contains all the costs that are both internal and external to the system; whereas, the Cost of Quality include the conformance, considering any costs connected with both appraisal and interference.

Cost of Quality is calculated as :

Cost of Quality = Cost of Poor Quality  + Cost of Good Quality

4 0
3 years ago
Other questions:
  • Three entrepreneurs were looking to start a new brewpub near sacramento, california, called roseville brewing company (rbc). bre
    8·1 answer
  • Your company currently has par, coupon bonds with 10 years to maturity and a price of . If you want to issue new 10-year coupon
    13·1 answer
  • Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (doll
    5·1 answer
  • About this app<br> What is the benefit of this app
    6·2 answers
  • What happens when the government finances a job creation project through taxes and borrowing?
    9·1 answer
  • Which payment option could have interest charged to you?
    13·1 answer
  • Suppose the price of a ticket to a Lenny Kravitz concert is $41 and at that price, the quantity of tickets demanded is 17,000 pe
    11·2 answers
  • What can you say when you want to contact people for sponsorship
    10·2 answers
  • If a firm has debit of 40%, a tax rate of 35%, free cash flows of $31, a change in capital expenditures of $20, and a change in
    12·1 answer
  • When returning your unit to service following a call, the responsibility of ensuring that the unit is restocked and ready for an
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!