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
kramer
3 years ago
14

A firm just paid an annual dividend of $1.00 today. The dividend is expected to growth at a rate of 14% for the next three years

, and then 6% thereafter. The required rate of return on this stock is 9%. What is the value of this stock? Round to the nearest cent. Do not include the dollar sign in your answer. (i.e. If your answer were $1.23, then type 1.23 without a $ sign)
Business
1 answer:
pychu [463]3 years ago
3 0

Answer:

Value of stock is $49.33

Explanation:

Dividend valuation method is used to calculate the the value of stock based on the dividend paid, its growth rate and rate of return.

Calculate dividend after 3 years first

Current Dividend = D0 = $1

Dividend after 3 year = D3 = D0 ( 1 + g )^n = $1 ( 1 + 0.14 )^3 = $1.48

Rate of return = r = 9%

Growth = g = 6%

DVM Formula for stock value

Price  = Dividend / Rate of return - Growth rate

Price of stock = D3 / ( r - g ) = $1.48 / ( 9% - 6% ) = $1.48 / 3% = $49.33

You might be interested in
Depending on the number of customer footfalls in each section, Glenn, the floor manager of an apparel store, shuffles the number
kolbaska11 [484]

Answer:

In the context of managerial roles, Glenn illustrates the role of;

B) The resource allocator role

Explanation:

Managerial roles are specific traits that are required to complete a managerial effectively. Managers have to adopt some of these roles depending on the task at hand. The managerial task can involve; strategizing, planning, organizing, controlling and leading. In every role, there is also the aspect of decision making. Mangers have to make decisions at one point or the other. Decision making is the act of choosing from set of alternatives which involves the identification of a problem and the formulation of alternative solutions. The manager then needs to make a decision by taking the best solution among the alternatives. There are various managerial roles that managers use, however we will consider the resource allocator role as shown below;

Resource allocator role

This roles comprises the decision on designation of company resources like financial, human and organizational resources. In the case of Glenn he utilizes the resource allocator role to designate the number of human resources needed on each floor. For example he determines the number of employees on the floor among the men's, women's, and kids' sections of the store.

7 0
4 years ago
If an economy experiences increasing opportunity costs with respect to two goods, then the production possibilities curve betwee
umka2103 [35]

Production possibilities curve between the two goods will be a straight, downward-sloping line if the opportunity cost rise.

<h3>What is production possibilities curve?</h3>

The production possibilities curve serves as graph that display the relationship between the resources and the output that can be produced.

Therefore, when the opportunity cost that exists between two goods, there will be. downward slope as regards the production possibilities curve.

Learn more about production possibilities curve at;

brainly.com/question/2601596

#SPJ1

8 0
2 years ago
Suppose you want to have $400,000 for g retirement in 25 years. Your account earns 8% interest. How much would you need to depos
MA_775_DIABLO [31]

Answer:

$418

Explanation:

FV = $400,000. This is the amount you want to have in your retirement account 25 years from now

i/r = 8%/year = 0.67%/month. The interest that the account pays

n = 25 years = 25 x 12 = 300 months

PV = 0

PMT (The amount of monthly deposit required to achieve the target above. This is the missing value we need to calculate)

By using financial calculator, we obtain:

PMT = $418

3 0
3 years ago
An employee of yours often offers excellent analysis and is able to quote facts and figures from memory during meetings; and the
Genrish500 [490]

Answer:

Realized strength

Explanation:

CAPP MODEL

This is simply called "Centre of Applied Positive Psychology".

Capp strength

This is are known to be more of fluid than personality traits and can occur over one's lifetime through different situations we experience.

The four quadrants of CAPP's Realise2 strengths model includes

1. Realized strengths

2. Unrealized strengths

3. Learned behaviours

4. Weaknesses.

Strengthss

This is simply known as an important or more so than weaknesses, a number of divisions are used by positive psychologist to help identify and measure your strengths. It is simply known as an attribute or quality of an individual that gives or accounts for successful performance.

The approach to strengths fully realized is simply to identify strengths and weaknesses to improve performance.

4 0
3 years ago
Estes Park, Inc., has declared a dividend of $6.20 per share. Suppose capital gains are not taxed, but dividends are taxed at 30
pickupchik [31]

Answer:

the ex-dividend price is $108.66

Explanation:

The computation of the ex-dividend price is shown below:

The Aftertax dividend is

= Dividend × (1 - tax rate)

= $6.20 (1 - 0.30)

= $4.34

Now the exdividend price is

= Selling price of a share - after tax dividend

= $113 - $4.34

= $108.66

hence, the ex-dividend price is $108.66

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

And, the same is to be considered  

5 0
3 years ago
Other questions:
  • Motor vehicle crashes are what for 15-20 year olds
    13·1 answer
  • Back Bay Company is a price−taker and uses target pricing. Refer to the following​ information:Production volume602,000units per
    12·1 answer
  • Many businesses today rely on ________ software for services like supply chain management.
    8·1 answer
  • In a typical graph for a purely competitive firm, the intersection of the total cost and total revenue curves would be: select o
    15·1 answer
  • Several company users are frequently forgetting passwords for their mobile devices and applications. Which of the following shou
    6·1 answer
  • Machine A costs $9,500 and has an annual operating cost of $5,500. Machine B costs $8,000 and has an annual operating cost of $5
    5·1 answer
  • Jim is beginning his research on franchise businesses in order to find one that meets his needs. A quick, easy way to get genera
    12·2 answers
  • An unmarried person, a divorced person, or a person legally separated from his or her spouse must choose which filing status whe
    7·2 answers
  • Name the three major credit bureaus. How do they score your credit rating? Will all three major credit bureaus always produce th
    9·1 answer
  • What negative consequences can emerge when vision, mission, or values contradict strategy? Name a time where you believe strateg
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!