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
nata0808 [166]
2 years ago
12

A stock currently sells for $25 per share and pays $0.24 per year in dividends. What is an investor's valuation of this stock if

she expects it to be selling for $30 in one year and requires a 15 percent return on equity investments?A) $30.24B) $26.30C) $26.09D) $27.74
Business
1 answer:
Kisachek [45]2 years ago
4 0

Answer:

B) $26.30

Explanation:

To determine an investor's valuation of the stock we must calculate the present value of next year's dividend and selling price:

present value = [dividend / (1 + rate)] + [selling price / (1 + rate)]

present value = [$0.24 / (1 + 15%)] + [$30 / (1 + 15%)] = $0.21 + $26.09 = $26.30

You might be interested in
if, after reflecting on the nature of leadership you decide that all leaders must treat their followers with respect, then you h
Virty [35]

Answer:

Behavioral

Explanation:

7 0
2 years ago
Peter owns 100 shares of a company. He receives a fixed rate of dividend from these shares. Which type of share has Peter purcha
xenn [34]

Answer:

B.  preference shares

Explanation:

Option A is wrong because equity shares provide a different rate of dividends to a shareholder. Equity shares are known as ordinary shares. Therefore, option C is wrong.

There are no priority shares in the components of stockholders' equity. Hence option D is wrong.

Investment security​ does not give any dividends. So option E is wrong.

Option B is correct because preference shares give a fixed rate of dividend.

4 0
3 years ago
Agency costs faced by MNCs may be larger than those faced by purely domestic firms because: a.monitoring of managers located in
mars1129 [50]

Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:

  • monitoring of managers located in foreign countries is more difficult AND foreign subsidiary managers raised in different cultures may not follow uniform goals.
  • monitoring of managers located in foreign countries is more difficult.
  • .MNCs are relatively large.
  • foreign subsidiary managers raised in different cultures may not follow uniform goals.

<h3>What are multinational corporations?</h3>

Multinational corporations can be regarded as one that have the license to operates in more than one country at a time.

Agency costs faced by MNCs may be larger than those faced by purely domestic firms due to how foreign subsidiary managers raised in different cultures may not follow  uniform goals.

Read more on human capita development here:

https://brainly.in/question/36071285

#SPJ12

8 0
2 years ago
In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and depreciation expense of $178,000.
Firdavs [7]

Answer:

3.5

Explanation:

Computation for the firm’s times interest earned ratio

Revenues$ 2.95 million

Cost of goods sold$ 2.45 million

Depreciation expense$ 178,000.00

Book values of Debt outstanding$ 1.15 million

Interest rate8.00

First step is to calculate for the EBIT

Using this formula

EBIT= Revenues -(Cost of goods sold +Depreciation expense$ 178,000.00)

EBIT=$2,950,000-($2,450,000+$178,000)

EBIT=$2,950,000- $2,628,000

EBIT=$322,000

Second step is to find the Interest

Using this formula

Interest =Debt outstanding with book value ×Interest rate

Let plug in the formula

Interest =$1,150,000×8%

Interest =$92,000

Now let find the firm’s times interest earned ratio

Using this formula

Firm’s times interest earned ratio=EBIT/INTEREST

Where,

EBIT=$322,000

INTEREST=$92,000

Let plug in the formula

Firm’s times interest earned ratio=$322,000/$92,000

Firm’s times interest earned ratio =3.5

Therefore the firm’s times interest earned ratio will be 3.5

7 0
3 years ago
The beliefs and values you were raised with are part of your ____________.
Anika [276]
I am guessing culture, because your culture is your tradition and religion which are your beliefs and values.
5 0
3 years ago
Read 2 more answers
Other questions:
  • Consider the production of paper in Strelsau. Suppose that the supply of paper is upward-sloping and the demand for paper is dow
    12·1 answer
  • Assume the following: Sales = $400M; Net Income = $60M; TA = $350M; and there is $0.50 in total debt per dollar of total equity.
    9·1 answer
  • Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress
    13·2 answers
  • As a renter, it is safe to assume that when you decide to move out of the rental property,a. you need not inform the owner in ad
    6·1 answer
  • Which of the following is a disadvantage of using credit
    15·2 answers
  • A company has decided that it no longer needs to extensively count and inspect the products it buys from a particular supplier.
    9·1 answer
  • The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _
    6·1 answer
  • When China reformed state-owned enterprises, it tried a new approach to choosing managers: it put managerial jobs up for auction
    9·1 answer
  • What does Bertrand Russell understand as freedom and liberty? How does his understanding compare to mills?
    11·1 answer
  • Williams Manufacturing uses scrap metal to produce various tools, such as drill bits, hammer heads, saw blades, and nails. The C
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!