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nata0808 [166]
3 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]3 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

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A mutual fund has $2 million in cash and $6 million invested in securities. It currently has 1 million shares outstanding.
Mamont248 [21]

Answer:

a. NAV = 8 per share

b. 250.000 shares

c. 7.95

Explanation:

a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share

b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.

c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.

New NAV = $7,950,000 /1m = $7.95

5 0
3 years ago
The amounts for recording properties and services purchased by a business are determined using the:______.
Alex17521 [72]

The amounts for recording properties and services purchased by a business are determined using the cost concept.

<h3>Which principle determines the amount initially entered into the records for purchases?</h3>

A principle of accounting establishes the initial amount entered for purchases in the accounting records. According to the cost idea of accounting, all purchases of items (such as assets or items required for spending) should be recorded and kept in books at their original cost. Therefore, unless specifically indicated differently, it should be understood that an asset's value on a balance sheet represents its cost. Let's use the case of a company that pays cash or bank for a building worth $200,000. The worth of the building will be recorded in the accounting records using the cost concept of accounting, which equals $2,000,000. After four years, the building's worth increased to $1,000,000.

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5 0
2 years ago
The concept of creating safer and more efficient equipment is called __________.
kvasek [131]

Answer:

The correct answer is Ergonomics.

Explanation:

When a company talks about providing efficient and safe equipment for its employees, they refer to the discipline of ergonomics.

Ergonomics is the one in charge of investigating and collecting data and with the knowledge of different related subjects such as psychology or physiology to find the right designs for people so that they are safe and comfortable, which allows them a better development in the Work and allow them to be efficient.

It is necessary to take into account the differences found in the population from age to cognitive ability to successfully apply ergonomics.

<em>I hope this information can help you.</em>

7 0
3 years ago
Read 2 more answers
If a speech consists of a story or series of short stories, which pattern of organization is the speaker using
Liono4ka [1.6K]
The pattern that is being referred to above is called the NARRATIVE PATTERN. If a speech contains a story or a series of short stories in it, and only includes a vivid imagery, the setting, plot and characters, then this would fall in the narrative pattern. Narrative means to narrate or to tell something according to the other of when it happened.
6 0
3 years ago
All of the following are potential benefits of innovation EXCEPT: Group of answer choices improved quality (attributes) of exist
Sav [38]

The potential benefit of innovation is the improved quality (attributes) of existing products. The correct option is A.

<h3>What is innovation?</h3>

Innovation is introducing new things and ideas.

The advantages of innovation are:

  • High relative advantage
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  • observability        
  • Compatibility
  • Low complexity

Thus, the correct option is A, improved quality (attributes) of existing products.

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5 0
2 years ago
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