Answer:
The market price is $12.81 per share.
Explanation:
The price of the stock today can be calculated using the constant growth model of DDM as the dividends are expected to grow at a constant rate. The formula to calculate the price of the stock under constant growth model is,
P0 = D1 / r-g
Where,
- D1 is the Dividend for the next period or D0 * (1+g)
- r is the required rate of return
- g is the growth rate in dividends
P0 = 2.44 * (1+0.05) / (0.25 - 0.05)
P0 = $12.81
Answer:
<u>a. Zero dividend.</u>
<u>b. 3.5 new shares</u>;
<em>texes will be paid.</em>
<u>Explanation:</u>
a. March 20 is a date earlier than when the dividends are too be paid on April 18, and as such Wilfred Nadeau<em> will not</em> receive any dividend if he sells his stocks since he no longer has ownership of them.
b. 45 cents dividends per 300 stocks of Wilfred is $135 (reinvestment dividend plan).
With a discount of 3.4% at $39.8 (3.4%*39.8) current price per stock makes the total cost per stock after discount= $38.4.
Dividing the reinvestment dividend plan over the discounted price (135/38.4) = 3.5 new shares, According to the requirements of law the investor must still pay tax annually on his or her dividend income, whether it is received as cash or reinvested.
Explanation
I think your question missed of key information for question 2, so I just answer question at my best for helping you.
Debit Credit
11-Oct
Treasury 292400
Cash 292400
<em>Being own shares repurchased
</em>
1-Nov
Cash (1,450 × 49) 71,050
Treasury Stock (1,450 × 43) 62,350
Paid-in Capital from Sale of Treasury Stock 9,700
<em>To record the sale of treasury stock. </em>
November 25
Cash (5350 × 38) 203,300
Paid-in Capital from Sale of Treasury Stock 9,700
Retained Earnings 17,050
Treasury Stock (5350 × 43) 230,050
<em>To record the sale of the remaining treasury shares </em>
The investment option that the client should go with to pay the child's college expenses is a. treasury bills.
<h3 /><h3>Why should treasury bills be used?</h3>
Treasury bills have a short term lifespan of less than a year which means that they mature in a short period of time.
The investor can invest in treasury bills and be able to access them by the time the child starts in school the next year.
Options for the question are:
a. treasury bills
b. intermediate-term bonds maturing in 5 years
c. long-term bonds of blue chip companies maturing n 10-30 years
d. a mutual fund based on the S&P 500 index
Find out more on treasury bills at brainly.com/question/14604863
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Answer:
The Price of Cocaine would rise drastically
Explanation:
If U.S Drugs Enforcement Agency impose higher restrictions in an effort to control illegal import of cocaine into the United States, this would directly impact the market for illegal drugs in the following ways:
- Since more restrictions get imposed, the procurement cost of cocaine alongside the risk associated with it in the form of higher penalties and prosecution, both will rise.
- The supply of cocaine would shrink in the market.
- The above two outcomes would result into the procurers and peddlers demanding much greater price for the same quantity of cocaine so as to compensate for the higher risk assumed and higher procurement costs associated.
Thus, price of cocaine will rise drastically as an outcome of such a move.
