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MAXImum [283]
3 years ago
15

A stock is expected to pay $0.70 per share every year indefinitely. If the current price of the stock is $18.90, and the equity

cost of capital for the company that released the shares is 7.9%, what price would an investor be expected to pay per share five years into the future
Business
1 answer:
german3 years ago
5 0

Answer:

$32.72

Explanation:

In this question, we are asked to calculate the price an investor would be expected to pay per share in the next five years.

We proceed as follows to calculate this.

Dividend = $0.70

Share price = $18.90

Hence = Dividend / Share price

= 0.70 / 18.90

= 0.037037

Cost of Equity = 7.9%

Expected growth = 0.037037 + 0.079

= 0.116037

Add one to it = 1 + 0.116037

= 1.116037

Share price after 5 year = $18.90 * (1.116037)^5 = $32.7231

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The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increas
sashaice [31]

Answer:

The answer is 750

Explanation:

When government increases its spending, this increase in spending leads to increases in income for households which cumulatively increase the national income, this effect is known as multiplier effect.

Government has increased its spending by 250 while multiplier effect is 3.

Therefore, output will increase by 750(250 x 3)

3 0
3 years ago
In 2019, Meghann Carlson, a single taxpayer, has QBI of $129,100 and modified taxable income of $103,280 (this is also her taxab
victus00 [196]

Meghann carlson QBI deduction is = $548,623

Solution:

The qualifying business income exclusion (QBI) referred to as Section 199A requires operators to receive up to 20 percent of their eligible business earnings for a tax deduction. It was implemented in the context of the Tax Cuts and Jobs Act 2017.

Since gross deduction for QBI deduction is set at 20% of lower of QBI ($129,100 ) or Taxable income($103,280)

So the lower is taxable income ,

i.e $103,280 × 20% ( 103,280 × 20÷ 100)

  = 20,656 ( 206.56 )

= $548,623

3 0
4 years ago
perations management is part of a production system that can be described in the following manner: Organization: inputs→processe
Tomtit [17]

Answer:furniture manufacturer: wood→sanding→chair---C

Explanation:

Operations management is the part of a production system that  administers best business practices to create the highest net operating profit within an organization. It  involves the management of  converting raw materials and labor into finished goods and services by passing through  efficient processes  so as to  maximize profit of an organization.

In Operations management, efficient productivity , coordination and formulation of new improved process is important  because to maximize profit requires constant innovation to reevaluate current practices.  An operations management is involved in inputs, process and outputs as can be seen illustrated below.

furniture manufacturer: wood→sanding→chair

5 0
3 years ago
Review your pre and post scores from "Where Are You Now." Did your scores improve? What activities did you complete that facilit
DIA [1.3K]

Answer:

what do you mean did our scores improve, if so, idk yet

3 0
3 years ago
When the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually for a selling price of $
Gre4nikov [31]

Answer:

casate conmigo cikitita

Explanation:

marry me little girl

6 0
3 years ago
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