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elena-s [515]
3 years ago
7

A financial analyst expects KacieCo. to pay a dividend of $3 per share one year from today, a dividend of $3.50 per share in yea

rs two, and estimates the value of the stock at the end of year two to be $28. If your required return on KacieCo stock is 15 %, what is the most you would be willing to pay for the stock today if you plan to sell the stock in two years
Business
1 answer:
Helga [31]3 years ago
6 0

Answer:

If your required return on KacieCo stock is 15 %, the most you would be willing to pay for the stock today if you plan to sell the stock in two years is $26.43

Explanation:

Accoring to the given data we have the following:

D1= $3

D2=$3.50

P2=$28

Ks=15%

Therefore, in order to calculate the most P0 you would be willing to pay for the stock today if you plan to sell the stock in two years, you would have to use the following formula:

P0 = PV of D1 + Pv of D2 + PV of P2

P0 = D1/(1+ks)^1 + D2/(1+Ks)^2 + P2/(1+Ks)^2

P0 = 3/(1+15%) + 3.5/(1+15%)^2 + 28/(1+15%)^2 = $26.43

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hram777 [196]

Answer:

D. To help pick a college or university

Explanation:

Career assessments help a student know which field of work is best. Knowing the best field of work can help work choosing a school that specializes in that area.

3 0
3 years ago
The transactions of Spade Company appear below.
s2008m [1.1K]

Answer:

Entries are given

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

                                            DEBIT           CREDIT

A. Kacy Spade, owner, invested cash in the company

Common stock                   14250

Cash                                                           14250

B. The company purchased office supplies

Office supplies                      413

Cash                                                              413

C.The company purchased office equipment on credit

Office equipment                 7880

Payables                                                      7880

D.The company received $1,681 in cash

Cash                                       1681

Fees earned                                                 1681

E. The company paid $7,880 cash to settle the payable

Payables                                7880

Cash                                                              7880

F. The company billed a customer $3,021 as fees

Receivable                              3021

fees earned                                                   3021

G. The company paid $520 cash for the monthly rent.

Rental expense                        520

Cash                                                               520

H. The company collected $1,269 cash as partial payment

Cash                                         1269

Receivables                                                    1269

I. The company paid a $1,000 cash dividend to the owner

Retained earnings                  1000

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5 0
3 years ago
An operator wants to determine the standard deviation for a machine she operates. To do this, she wants to create a p-chart. Ove
kondaur [170]

Answer:

The answer is letter A.

Explanation:

Less than or equal to 0.1

Because:

Average proportion (P-bar)= 0.024

Observations (n)= 75

sd =√(P-bar)(1-(P-bar)/n

sd =√(0.024)(1-0.024)/75

sd= √(0.024)(0.976)/75

sd= √(0.023424)/75

sd= 0.01767

sd ≤ 0.1

8 0
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The Rule of 72 is: a. A tool to determine the number of years until retirement for an employee b. Used to estimate how fast pric
Veseljchak [2.6K]

Answer:

b. Used to estimate how fast prices will double using a given annual inflation rate

Explanation:

Rule of 72 is a fast statistical method to determine how long an investment will double given annual interest rate.

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Alternatively it can be used to calculated annual rate of return required to double investment.

Alternatively it can be used to calculate annual rate of return required to double an investment.

For example if $1,000 is to be doubled in 5 years.

Years to double= 72/ Interest

Interest= 72/5= 14.4%

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While winning is not guaranteed, if you shop there a lot, you may be able to get entered several times, increasing your chances of winning, compared to those who may not shop there a lot or even those who do not choose to take the survey.

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