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]
4 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]4 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
What majors should i do to be a social worker?
atroni [7]
"1) Enroll in a college that offers the Bachelor of Social Work degree (BSW) that you can complete as an undergraduate (i.e, usually within four years). Not all colleges have a BSW major. However, most will offer a related field like sociology or psychology." - Google
Technically, A bachelor Degree of Social Work and a degree related to Sociology or psychology.
Hope this helped :)
4 0
3 years ago
A delivery that occurs within 3 hours from the onset of labor is called?
Arturiano [62]

The delivery that occurs when the mother deliver within the three hours from the onset of the labor is called the precipitous delivery. This is the delivery that can be defined as a way of having to undergo labor or delivery in an amount of time that is shorter.

8 0
4 years ago
What is the purpose of a warranty?
Murljashka [212]
C. Hope this helps!
4 0
2 years ago
Suppose that a fully-employed economy produces only two goods, hamburgers and flat-panel TVs.
xz_007 [3.2K]

Answer:

B) produce more TVs and fewer hamburgers.

Explanation:

Since the economy is producing too may hamburgers, more than the optimal quantity, they should lower the production of hamburgers and increase the production of something else, in this case the only thing else in flat-panel TVs.

When a company or an economy produces more than the optimal quantity of any product, it will start losing money since the marginal cost of producing that product will exceed the marginal revenue generated by selling that product.

4 0
4 years ago
In the ______ leadership model, a leader makes desirable rewards available in the workplace and clarifies how followers can obta
Vadim26 [7]
The correct answer in the space provided is the path goal leadership model. This allows employees in the workplace to motivate their work or to do their assigned task with the used of the leader's given rewards. This enables the employees to do the task quicker and help provide support and in obtaining the desired goal.
5 0
3 years ago
Other questions:
  • The Tennis Times (TTT) is a publisher of magazines. Its accounting policy for subscriptions follows:RevenuesRevenues from our ma
    14·1 answer
  • Kim is the risk manager for a large organization. she is evaluating whether the organization should purchase a fire suppression
    11·1 answer
  • In business, failure usually means what?
    8·1 answer
  • What can you do to ensure guest and<br> team member safety?
    10·2 answers
  • What is the effect of KFC in the economy of the world?​
    13·1 answer
  • Consider a bank that has the following balance sheet: Liabiiiies Reserves $200 Deposits $960 Loans $800 Equity $40 Suppose some
    8·1 answer
  • Bike St. Pete currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: Direct
    13·1 answer
  • For the year ended December BL 2017, Lopez Company has implemented an employee bonus program based on Lopez’snet income, which e
    5·1 answer
  • In January 2007, TJX disclosed that hackers had breached its credit card systems. The company reported that the attackers might
    9·1 answer
  • A birthday party at the skating rink costs $ 60 to reserve a party area and $ 2. 50 per guest for skating and skate rental. How
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!