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VARVARA [1.3K]
3 years ago
15

The Stagnant Growth Corporation has paid a constant dividend of $2.50 per year for the past 3 years and is expected to continue

paying the same dividend per share for the foreseeable future. If the required rate of return on its common stock is 12%, the most an investor should pay per share is _____. (Round to two decimal places.)
Business
1 answer:
AleksAgata [21]3 years ago
6 0

Answer:

20.83%

Explanation:

Data provided

Dividend = $2.50

Required rate of return = 12%

The computation of the current price of the stock is shown below:-

The current price of stock = Dividend ÷ Required rate of return

= $2.50 ÷ 12%

= 20.83%

So, for computing the current price of the stock we simply divide the dividend by required rate

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If your economics class was graded on a curve and everyone agrees to study only half as much, everyone would get the same grade
erik [133]

Answer:

studying

Explanation:

The coming together by students not to study is an example of collusion in an oligopoly.

An Oligopoly is when there are few large firms operating in an industry.  Collusion is when people come together and decide on a particular course of action. It is usually non competitive

The dominant strategy here is to study.

Dominant strategy is the best option for a player regardless of what the other players are doing.

the students prefers to study more and get an A or to study the same amount as other students and get a C. Her least preferred option is an F. Since she does not know the actions of the other students, are best option is to study

7 0
3 years ago
An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to busine
torisob [31]

Answer:$ 50 million

Explanation:

We know GDP is calculated as the sum of consumption spending(C),Investment spending(I),Government spending(G) and net export(X).

Here

  • Consumption spending=100,000\times 100=\$10 million
  • investment spending=200,000\times 100=\$20 million
  • Government spending=100,000\times 100=\$10 million
  • $5 million worth tables are sold abroad
  • no tables are imported.

At the end of year

GDP=C+I+G+X-M

GDP=10+20+10+5-0=$45 million

and the remaining 50,000 table worth of $5 million in inventory goes to the investment made by private sector

thus value of GDP is $ 50 million.

4 0
3 years ago
Suppose businesses in general believe that the economy is likely to head into recession and so they reduce capital purchases. th
uranmaximum [27]
They would probably fire more workers to stay in business or/and raise prices.

Hope this helps!
4 0
3 years ago
How much do child life specialists make a month :)<br> just asking...<br> for a friend
expeople1 [14]
Uhh like any other job it varies but uhh on average I’d say about $50,000 a year. But it ranges from 15,000 to 120,000. And the average hourly pay is like $16-$25 and hour.

Hope this helps!
7 0
2 years ago
Does the reserve banks determine tax rates?
Anna [14]
The most straightforward way to calculate effective tax rate is to divide the income tax expenses by the income earned before taxes. For example, if a company earned $100,000 and paid $25,000 in taxes, the effective tax rate<span> is equal to 25,000 / 100,000 or 0.25.

I hope my answer has come to your help. God bless and have a nice day ahead!

</span>
4 0
3 years ago
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