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
Softa [21]
3 years ago
13

Poulter Corporation will pay a dividend of $3.25 per share next year. The company pledges to increase its dividend by 5.1 percen

t per year, indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company’s stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
andriy [413]3 years ago
5 0

Answer:

Price of stock = $55.08

Explanation:

The price of a stock is the present value of the future dividends discounted at the required rate of return.

P = D/(r-g)

<em>P-price of stock today, D- Dividend in year's time, r- required rate of return,</em>

<em>g- growth rate in dividend</em>

Using the following parameters:

P =?, r- 11%, g- 5.1%

P = 3.25/(0.11-0.051)

P = 55.08474576

Price of stock = $55.08

You might be interested in
Calculating and Interpreting EPS Information Wells Fargo reports the following information in its 2015 Form 10-K. In millions 20
Delvig [45]
The answer is 20 because 30 is 20 but in a different hdhwgegdhdhbshehdhdb way
6 0
3 years ago
You are an accounting student at a university and also a talented guitar player. During summer vacation, you are hired full time
Travka [436]

Considering the scenario described above, at the store, I am an employee. This is because I'm hired full-time.

Also, because an office manager is supervising me, that shows I am an employee.

Also, given that I work within normal business hours at the store, that is a characteristic of an employee. Again, payment of wages is associated with employee relations.

On the other hand, I work as an independent contractor at the pub because I decide the music to play and get paid per gig.

Also, given that I don't work at normal hours and get paid at a lump sum, this is an independent contractor working feature.

Hence, in this case, it is concluded that I worked as an independent contractor at the pub and an employee at the store.

Learn more here: brainly.com/question/20834227

8 0
2 years ago
The executives of the company need you to present on a new skateboard project which will be manufactured either in-house or in a
Effectus [21]

Explanation:

In this case, we see that the product's life cycle is in the introduction phase.

This is the first phase, where the initial phase of the product's life occurs, it is the phase where a new product will be launched on the market, so in this phase the ideal is to have a market segmentation, which occurs in the identification of a group of people with similar product responses and preferences, in order to find the ideal target audience for the new product to be launched and direct the advertising strategy and product features to that potential audience.

5 0
3 years ago
Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be
solong [7]

Answer:

total payment will be $21,000.

Explanation:

The Payment at maturity will include, the Principle amount (amount borrowed) and the Interest that accrued over the period of the note payable.

<u>Total Payment Calculation :</u>

Principle amount            = $20,000

Interest ($20,000 × 5%) =    $1,000

Total Payment                =  $21,000

7 0
3 years ago
David saves money from his teaching job to buy a new boat when he retires in 20 years. The boat will cost $30,000. He has $12,00
LuckyWell [14K]

Answer:

True

Explanation:

The main advantage of a compound interest account is that the interest that you earn also earns interest, so the total amount of earned interest increases.

For example, a $10,000 account earning simple interest at a 4% rate will earn $4,000 in ten years. While the same amount in a compound interest account will earn $4,802.

7 0
3 years ago
Other questions:
  • Blue Jeans Co.., can produce 1,300 pairs of pants per hour, at maximum efficiency. There are three eight-hour shifts each day. D
    13·1 answer
  • What has been the pattern of union membership in recent years?
    7·2 answers
  • Brad expects interest rates to increase and purchases a put option on Treasury bond futures with an exercise price of 97-00. The
    11·1 answer
  • If the exchange rate between the dollar and the Swiss franc changes from 1.8 to 1.5 francs per dollar, the franc depreciates and
    5·1 answer
  • When a negotiable instrument is transferred, the transferor warrants all of the following EXCEPT:_______
    13·1 answer
  • In the former Soviet Union, the quantities of output and prices to be charged by key firms were determined by
    7·1 answer
  • On January 1, 2020, Piper Corp. purchased 40% of the voting common stock for of Betz, Inc. for $2,000,000 and appropriately acco
    15·1 answer
  • g Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home
    13·1 answer
  • Am 16 years old and I love little kids. I like to organize special events—like birthday parties for children. I have decided tha
    5·1 answer
  • Prior period adjustments to financial statements can result from: Multiple Choice Changes in estimates of salvage value. Materia
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!