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Westkost [7]
3 years ago
14

Auto Transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the

company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 15 percent?
Business
1 answer:
kupik [55]3 years ago
8 0

Answer:

$14.83

Explanation:

D1 = 1.90

D2 = 2.10

D3 (onwards)  = 2.30; meaning growth rate g = 0

Find the Present value of each year's dividend at 15% interest rate;

PV(D1) = 1.90/(1.15) = 1.6522

PV(D2) = 2.10/(1.15²) = 1.5879

PV(D3 onwards) = \frac{[\frac{2.30}{0.15-0} ]}{1.15^{2} } = 11.5942

Next, sum up of these present values of these dividends to find the value of the stock;

1.6522 + 1.5879 + 11.5942 = 14.8343

Therefore, the price of the stock is $14.83

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"Ethan knows that when he graduates from college and begins looking for a job, he will need to make his resume stand out from al
kakasveta [241]

Answer:

Communicating value

Explanation:

Communicating value involves showing others what makes one's product or skills different and better than others that are available.

What value means to stakeholders in a situation needs to be defined.

Focus is then given to how the skill or product can meet these unique needs.

Also one needs to understand the most effective platform to use in communicating value.

In this instance Ethan wants to make his resume stand out from all the other resumes that the company receives in order to be selected for an interview

He is communicating the value he can add to the company.

5 0
3 years ago
LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620
Gnom [1K]

Answer:

LeCompte Corp.

The profit margin that LeCompte Corp. would need in order to achieve the 15% ROE, holding everything else constant is:

A) 7.57%.

Explanation:

a) Data and Calculations:

Assets = $312,900

Common Equity = Assets = $312,900

Sales for the last year = $620,000

Net income after taxes = $24,655

Expected return on equity (ROE) = 15%

ROE (in amount) =  $312,900 * 15% = $46,935

Profit margin = Returns on Equity/ Sales * 100

= $46,935/$620,000 * 100

= 7.57%

b) The expected returns on equity in dollars is equal to the net income.  Therefore, we can use the ROE to calculate the profit margin.  The profit margin expresses the relationship between sales and profit.  It shows the profit made from each dollar sales.

4 0
2 years ago
Duerr Company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is:
anzhelika [568]

Answer:

The maturity value is "$79790".

Explanation:

The given values are:

Principal

= $79,000

Time

= 30/360

Rate

= 12%

The interest on the cash loan to Ryan and Co will be:

= 79000\times 12 \ percent\times \frac{30}{360}

= 790 ($)

Maturity value

= Principal\times (1+rate\times time)

= 79000\times (1+(12 \ percent\times \frac{30}{360} )

= 79000\times 1.0100

= 79790

5 0
3 years ago
Economic theory defines specialization as the production of one or just a few goods and services. Specialization refers to how a
Delvig [45]

Answer:

Both countries can benefit from trade through specialization.

Explanation:

Specialization refers to the situation when an individual, organization or country focuses on available resources and instead of producing a lot of products, they produce what they may need.  

A country achieves specialization by producing a greater quantity of the goods it can produce at lower opportunity cost.  

Through specialization, both countries involved in trade can produce well in a larger quantities than they need to consume. They trade the excess goods and are able to consume at a point beyond their production possibility curve.

3 0
3 years ago
Nicole works for RTFC Enterprises as a regional sales representative. RTFC is a prominent producer of board game supplies. Nicol
MaRussiya [10]

Answer:

internal entrepreneur

Explanation:

According to my research on different types of entrepreneurs, I can say that based on the information provided within the question Nicole is an internal entrepreneur. This term is defined as a person within a large corporation who is taking a direct approach for turning an idea into a profitable finished product, usually by being assertive and pushing through organizational obstacles.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
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