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
5. A raise in the price of a product causes _____. a decrease in supply an increase in demand an increase in competition a decre
grigory [225]

Answer:

d

Explanation:

a decrease in competition

6 0
3 years ago
Melinda's job consists of greeting visitors at the front desk of an architectural firm. Sometimes she finds herself with little
pickupchik [31]
This is a funny question!
a. texting her mother at home
7 0
3 years ago
Read 2 more answers
Which of the following is true about e-mail marketing messages? A. E-mail marketing messages cost more per thousand people reach
exis [7]

Answer:

B. E-mail marketing messages are effective in reaching the desired target market and result in low costs.

Explanation:

E-mail marketing is the act of sending customised mail advertising a product or service through the email address of targeted people.

Most times, corporate business or individual business owners form a mailing list from asking potential customers to input their email addresses for updates about the particular product or service.

This method of marketing is very effective because it is aimed at a target audience and is low cost. Each person that receives the advertising mail was at once point or another interested in that particular product or service. So, the mails don't get sent to people that have no interest in such product or service and because the audience is a target audience and in a mail listing, the cost is relatively cheap.

7 0
3 years ago
Occurs when members of the marketing channel collude to control the prices passed on to consumers.
kramer
Vertical price fixing takes place when members of a marketing channel control the prices implemented to the consumers. It is considered to be illegal by the U.S. Constitution which involves "fixing" the price of the goods in the market and most likely happens in the automotive industries. 
5 0
3 years ago
Andy and Marjorie have very little will power when it comes to spending. They want to put their savings in an instrument that ca
aliya0001 [1]

Answer:

Money market mutual fund

Explanation:

Money market mutual fund is a fund that usually invest in short term securities, for example treasury bills.

Members are paid dividends at predetermined intervals. They provide a stable savings option.

This will be a perfect way for Andy and Marjorie to save their money, and they will not have access to it via their ATM card.

3 0
3 years ago
Other questions:
  • Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $20,000 in Ma
    9·2 answers
  • What type of report must accompany claims when an unusual, new, seldom used, or category i unlisted code or category iii code is
    8·1 answer
  • If revenues are recognized only when a customer pays, what method of accounting is being used?Recognition basisAccrual-basisMatc
    6·1 answer
  • What order do the planets go in from least to greatest
    10·2 answers
  • SmartCorp sells 500 units, resulting in $75,000 of sales revenue, $32,000 of variable costs, and $20,000 of fixed costs. The num
    6·1 answer
  • Trip Advisor offers reviews by experts on airlines, hotels, and restaurants.
    5·1 answer
  • Thế nào là dãy số thời kỳ
    15·1 answer
  • Rhiannon, a long-time employee for a healthy pet food company, conducts research about what customers want for their pets. She
    9·1 answer
  • Within the 4e framework for social media, the ultimate goal of a firm is to ______ the customer. multiple choice question. excit
    8·1 answer
  • insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is a(n) ________blan
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!