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umka21 [38]
3 years ago
11

A stock just paid an annual dividend of $2.8. The dividend is expected to grow by 10% per year for the next 4 years. The growth

rate of dividends will then fall steadily by 1.75% per year, from 10% in year 4 to 3% in year 8 and stay at that level forever. The required rate of return is 12%. Attempt 2/10 for 10 pts. Part 1 What is the expected dividend in 8 years
Business
1 answer:
k0ka [10]3 years ago
7 0

Answer:

$39.53    

Explanation:

The first step is to find the dividends growth

D1        $2.80 * 1.10 = $3.08

D2      $3.08 * 1.10 = $3.388

D3      $3.388 * 1.10 = $3.727

D4      $3.727 * 1.10 = $4.1

D5      $4.1 * 1.0175 = $4.171

D6      $4.171 * 1.0175 = $4.244

D7      $4.244 * 1.0175 = $4.318

D8      $4.318 * 1.03 = $4.448

From the year 8 onward, the growth remains at 3% forever. So the value of the stock at the year end 8 would be:

Perpetuity at the year 8 = $4.448  * (1 + 3%) / (12%-3%)  = $50.9

Now, we will discount all the dividends to the year 8 and the stock value at 12% required rate of return to find the value of stock at year zero.

Value of Stock at Y0 = D1 / (1 + 12%)^1    + D1 / (1 + 12%)^2    + D1 / (1 + 12%)^3    + D1 / (1 + 12%)^4    + D1 / (1 + 12%)^5    + D1 / (1 + 12%)^6    + D1 / (1 + 12%)^7  

+ D1 / (1 + 12%)^8  + Stock Value / (1 + 12%)^8

= $39.53

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serg [7]

Answer:

It is a very critical factor for companies to comply with what the Occupational Risk Prevention law says. Companies are responsible for achieving a safe work environment, and all the sanctions will fall on them if they fail to comply with appropriate security measures, such as an economic, criminal or civil sanction, depending on each situation

Explanation:

The Law on Occupational Risk Prevention aims to guarantee safety and health in the workplace, by complying with certain labor measures. The worker can have a civil responsibility in case of not acting correctly, and will have to answer for it legally if it causes damage to third parties. However, it is finally the company that must respond even when workers cease to comply with their safety obligations.

A good prevention reduces the risk of endangering the integrity of workers. On the other hand, there are various sanctions against companies that do not comply with these measures, the most important is the economic damage, which should be avoided. In more serious cases, criminal or civil liability could also exist, but it would depend on the situation

4 0
3 years ago
At​ year-end, Simple has cash of $ 22 comma 000​, current accounts receivable of $ 80 comma 000​, merchandise inventory of $ 24
oee [108]

Answer:

45.62 days

Explanation:

For computing the average number of days receivables, first, we have to calculate the account receivable ratio. The formula is shown below:

Account receivable ratio = Net credit sales ÷ Average accounts receivable

where,

Average account receivable = (Beginning account receivable balance + ending account receivable balance) ÷ 2

Now put these values to the above formula

So, the answer would be equal to

= $480,000 ÷ ($40,000 + $80,000 ÷ 2)

= $480,000 ÷ $60,000

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Now, the average level of​ receivables equals to

= Total number of days in a year ÷ Account receivable ratio

= 365 days ÷ 8

= 45.62 days

5 0
3 years ago
In 2009, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 201
denis-greek [22]

Answer:

a.  Production decreased by 4 percent

Explanation:

In 2009, production: 60,000 units

Hours worked per day: 80x8= 640 hours

Productivity= 60,000/640 hours =93.75 units per day

In 2010: production: 76 500 units

Hours worked per day= 85x10= 850 hours

productivity= 76,500/850= 90  units per day

In 2010, production decreased by 3.75 per day. (93.75-90.00)

percentage decrease= (3.75/93.75) x 100=4

In 2010 production decreased by 4 percent

4 0
3 years ago
Allison spends a lot of time socializing with friends on facebook, downloading movies, and completing schoolwork. but her older
notsponge [240]
I would think it would be yes I think
8 0
3 years ago
White Company's wages payable account had a beginning balance of $3,757 and an ending balance of $2,070. During the year, wages
borishaifa [10]

Answer:

the amount paid during the year is $16,875

Explanation:

The computation of the amount paid during the year is shown below:

Opening Balance $3,757

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Less: Closing Balance -$2,070

Amount Paid $16,875

Hence, the amount paid during the year is $16,875

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0
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