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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

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A door hardware company’s marketing and supply chain teams have developed a good rapport between them. As information flows easi
Anton [14]

Answer:

2. A supply chain is broader than marketing channel

Explanation:

A supply chain involves the process from getting raw materials, to producing the finished goods, to delivering the goods to the final customer.

A marketing channel deals specifically with the distribution of finished goods and services to specific times of customer, through particular means.

As can be seen from the definitions, a supply chain is broader than a makerting channel, because it involves other actions besides the distribution to the final customer (more specifically the previous ones: getting the raw materials, and transforming those raw materials into finished goods).

6 0
3 years ago
You have been running a successful art and framing shop for three years. You have decided to allow others to use your business n
jeka94
<h3><u>Answer -</u></h3>

If one has been running a successful art and framing shop for three years and has decided to allow others to use his/her business name materials and methods in operating their own business for a fee. It may be called as a franchise agreement.

<h3><u>Explanation -</u></h3>

A franchise agreement allows the business owner to use the licensor's brand and method of doing business. The franchisor is the original or existing business owner who allows the other one to use his/her business name materials and methods in operating their own business.

A certain amount of fees is to be paid by the franchisee that may be called in the layman’s language as the licensee, who is supposed to pay the fee to the licensor (franchisor) are exchanged for the rights to use the franchisor's name is for a specific number of years.

3 0
3 years ago
You win the lottery and must decide how to take the payout. use an 8% discount rate. what is the present value of $10,000 a year
Rama09 [41]
For compounding interest, there is a formula relating the present worth (P) with the annuity (A). This is shown in the picture. The 'i' is the effective interest rate while n is the time. You should make sure that you are consistent with the units. If your time is in terms of years, your interest should be in terms of percent per year compounded yearly. Moreover, your annuity should be per yearly basis. In this case, it is already consistent so we don't need to convert. Substituting the values,

P = 10,000[(1.08^9-1)/(0.08*1.08^9)]
P = $62,468.88

8 0
3 years ago
Which of the following choices concerning the recognition of interest income for corporate bondare CORRECT?
kumpel [21]

Answer:

The correct answers are letters "A", "B", and "C".

Explanation:

Corporate bonds are securities that firm issues to be sold to investors to raise funds that will be using to keep the company up and running. Investors profit from the interest rate dealt in the bond agreement or sometimes they obtain physical assets of the organization as collateral. If in the <em>secondary market bonds</em> are issued at a premium, the premium can be amortized or applied to the bond base but if the bonds were issued at a discount, <em>discount bond rules</em> take into place. The <em>interest payment received</em> thanks to the bonds are recorded in the gross income.

7 0
3 years ago
Wally offers to repair and service a forklift for valu lumber outlet, but wally dies before valu accepts. most likely, wally's d
Furkat [3]
D.terminates the offer
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