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blagie [28]
3 years ago
9

Suppose a particular stock just paid a dividend of $2.50 and expects to grow the dividend by 4% per year, indefinitely. What is

the price of the stock if the required return by shareholders is 15%?
Business
1 answer:
klemol [59]3 years ago
4 0

Answer:

Using the dividend discount formula we can find what the price of a stock should be using its growth rate, required return and dividend amount.

The formula is D*(1+G)/R-G, where d= dividend, G= Growth rate and R = required return. In this case we know the dividend is 2.50, the growth rate is 4% and the required return is 15% so in order to find the value or price of the stock we will input these values in the formula.

2.5*(1+0.04)/0.15-0.04=23.63

According to the dividend discount method the price of the stock should be $23.63.

Explanation:

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The intended audience for the memo is <u><em>all company employees</em></u>. The tone of the memo should be <em><u>formal</u></em>. Finally, the purpose of the memo is <u><em>to make sure employees understand and follow the updated dress code</em></u>.

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Bob has a face-to-face interview tomorrow morning. he has done his research and knows a lot about the prospective employer. he w
Genrish500 [490]

Dressing to impress for interviews would typically involve wearing professional dress in order to look smart and presentable.

<h2>Bob has to follow some of the listed tips (not exhaustive) in addition to the due diligence he has done about his employer. </h2>

Some of the options he has would include:

  • A suit, jacket and tie
  • A semi-formal trousers and a shirt
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Dressing properly for interviews would put Bob in a better light as it shows he is serious about the job. It also shows he is interested in the position, and finally demonstrates an understanding of the company's corporate culture.

Learn more about #interviews and #dress codes here: brainly.com/question/15128068?referrer=searchResults

4 0
2 years ago
Pina Colada Corp. had 150 units in beginning inventory at a total cost of $16,500. The company purchased 300 units at a total co
ICE Princess25 [194]

Answer:

FIFO = $17,000

LIFO = $9,350

Average-cost = $14,450

Explanation:

Initial inventory: 150 units, at a total cost of $16,500 ($110 per unit).

Purchases: 300 units, at a total cost of $60,000 ($200 per unit).

Final inventory: 85 units.

Unit sold: 150+300-85=365 units

FIFO (first in, first out)

In this method, we considered that the units that were first in the inventory were sold first.

Initial inventory:  150 u. x $110 per unit = $16,500      $16,500

Variations:           300u. x $200 per unit = $60,000   $76,500

                          -150 u. x $110 per unit = -$16.500      $60,000

                          -215 u. x $200 per unit = -$43,000   $17,000

Final inventory      85 u. x $200 per unit = $17,000

LIFO (last in, first out)

In this method, we considered that the first units that leave the inventory are the last that have arrived.

Initial inventory:  150 u. x $110 per unit = $16,500       $16,500

Variations:           300u. x $200 per unit = $60,000    $76,500

                          -300 u. x $200 per unit = -$60,000   $16,500

                          -65 u. x $110 per unit = -$7,150           $  9,350

Final inventory      85 u. x $110 per unit = $9,350

Average cost

In this method, every unit that left the inventory is valuated with an average-cost per unit of the inventory.

Initial inventory:  150 u. x $110 per unit = $16,500       $16,500

Variations:           300u. x $200 per unit = $60,000    $76,500

                          -365 u. x <em>$170*</em> per unit = -$62,050   $14,450

Final inventory      85 u. x $170 per unit = $14,450

<em>*average cost = (150*110+300*200)/(150+300)=76500/450=$170</em>

5 0
3 years ago
Read 2 more answers
Which of the following is an example of how advanced technology has helped the modern economy ?
OlgaM077 [116]
Its between a an B  but i think its A
7 0
3 years ago
Suppose Raphael and Susan are playing a game in which both must simultaneously choose the action Left or Right. The payoff matri
erica [24]

Answer: Please refer to Explanation

Explanation:

The Dominant Strategy in a game is the strategy that a player will choose that will provide them with the highest payoff regardless of what the other player does.

In the above, the dominant strategy will be for RAPHAEL to choose LEFT.

By choosing left Raphael makes a payoff of 4 if Susan picks Left as well and a Payoff of 6 if Sudan picks Right. This is better than him picking Right and he will get a Payoff of 3 if Susan chooses Right as well.

The Nash Equilibrium is the strategy where both are making the best that they can given the strategy of the other player and deviating from it will give them less pay out.

The dominant strategy therefore is for RAPHAEL to choose LEFT and for SUSAN to choose RIGHT.

This is because Raphael will pick Left as it maximises their payoff and Susan will then pick a strategy that gives her the highest payoff based on Raphael's decision which is to go RIGHT.

7 0
3 years ago
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