1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreyandreev [35.5K]
4 years ago
10

A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5 percentand the risk premium for this stock is

4 percent. If the annual dividend is expected to remain at$1.80 per share, what is the value of the stock?A. $17.78B. $20.00C. $40.00D. None of the above
Business
1 answer:
lilavasa [31]4 years ago
3 0

Answer:

B. $20.00

Explanation:

To calculate the intrinsic value of a paying dividends stock we use the Gordon Growth Model. PV = D1 / (k +g). In this case, the dividend is not going to experience any growth (g) therefore g=0 And D1 =D0 Which equals 1.8. K is the expected rate of return which is calculated adding the risk premium and risk- free rate. K=5% + 4%=9%.

PV = 1.8 / 0.09

PV = 20.00

You might be interested in
During September, the capital expenditure budget indicates a $280,000 purchase ofequipment. The ending September cash balance fr
Mariulka [41]

Answer:

$260000

Explanation:

$280k  purchase equiment >> Outflow of cash

$40,000>> Operative Cash >> Inflow Cash

$260k >> cash loan in order to achieve balance

------------------------------

$20000 >> Cash balance

5 0
3 years ago
The amount of money you can charge to a credit card is called
uranmaximum [27]
It is called deposit.
8 0
3 years ago
Schwartz's model suggests that: Select one: A. We are always aware of our values and how they influence us B. Values are formed
Nastasia [14]

Answer:

The correct answer is letter "D": Values may conflict with each other.

Explanation:

American psychologists Shalom H. Schwartz in his "<em>Theory of Basic Human Values</em>" proposes there are ten (10) values driving individuals' behaviors: s<em>timulation, self-direction, universalism, benevolence, power, achievement, hedonism, tradition, conformity, </em>and <em>security</em>.

<em>According to Schwartz, some values like benevolence and power conflict with each other but some others such as conformity and security are compatible.</em>

3 0
3 years ago
In 2011 oil production in Libya was interrupted by political unrest. At the same time, the demand for oil by China continued to
vampirchik [111]

Answer:

Quantity of oil bought & sold would depend upon relative change i.e increase & decrease in demand & supply respectively.

  • ↑Dd = ↓Sy : Qty same
  • ↑Dd > ↓Sy : Qty ↑
  • ↑Dd < ↓Sy : Qty ↓

Explanation:

Libya is an exporter of Oil to China. It implies china's demand for oil is satisfied by Libya's imports.

Usual markets are at equilibrium when market demand = market supply, demand & supply curves intersect.

Political unrest in Libya decreasing oil production, would decrease supply (exported) of oil to China & sift supply curve leftwards. Simultaneously, increase in China demand for oil would shift the demand curve rightwards. These changes in demand, supply would create excess demand. Excess demand would cause competition among buyers & increase the new equilibrium price.

However, <u>Quantity </u>of oil bought & sold would depend upon relative change , shift in demand & supply. If increase in demand is equal to decrease in supply, the quantity would remain<u> same.</u> If increase in demand is more than  decrease in supply, quantity will <u>increase</u>. If increase in demand is less than decrease in supply, the quantity will <u>decrease.</u>

3 0
3 years ago
The Office of Management and Budget ______. Group of answer choices
Serga [27]

Answer Choices:

A. is staffed by accountants, economists,  tax lawyers

B. keeps Congress well informed on international  affairs

C. was created by Article III of the Constitution

D. consents to treaties and  trade agreements negotiated by the President

Answer:

A.

7 0
3 years ago
Read 2 more answers
Other questions:
  • A broker produces a buyer who is interested in buying a listed property. At closing, the seller is unable to provide marketable
    15·1 answer
  • Papa Roach Exterminators, Inc., has sales of $659,000, costs of $345,000, depreciation expense of $45,000, interest expense of $
    14·1 answer
  • Turnbull Department Store had net credit sales of $18,000,000 and cost of goods sold of $15,000,000 for the year. The average in
    14·2 answers
  • __________are increasingly popular becasue they can be both infromative and entertaining, and often the cost of airing of a 30-m
    8·1 answer
  • Complex numbers are often used when dealing with alternating current (AC) circuits. In the equation $V = IZ$, $V$ is voltage, $I
    11·1 answer
  • Bateman Corporation sold an office building that it used in its business for $800,200. Bateman bought the building 10 years ago
    14·1 answer
  • What type of account is recommended for unexpected expenses?
    10·1 answer
  • Last week pauline worked 35 hours and made $280 how much money did pauline make per hour
    8·2 answers
  • Question 1 of 15.<br> #1. Objective A: Left Turn<br> True False<br> Mark for follow up
    10·2 answers
  • Recognizing that grade point average may not completely reflect success in school is an example of a?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!