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
Lostsunrise [7]
2 years ago
9

Assume that shareholder's required rate of return (r) is 9%. Dr. Pepper is expected to pay a dividend of $2.00 per share (D1) ne

xt year. Moreover, investors expect dividends to grow at a constant rate of 4% per year (g). According to the Dividend Discount Model, what should be the current price per share of Dr. Pepper?
Business
1 answer:
Juli2301 [7.4K]2 years ago
3 0

Answer:

P=$40

Explanation:

We will apply constant dividend growth model that is =P = D1 / ( k-g )

P is the price of share  ?

D1 is the current divided  $2

k is the rate of return       9%

G is the constant growth  4%

P=2/(9%-4%)

P=$40

You might be interested in
Which of these statements defines the term resources?
sineoko [7]
The correct answer to that question would be A. Materials that help you acheive goals.
8 0
2 years ago
Read 2 more answers
The following 3 questions are based on this information. Kings Department Store has 625 rubies, 800 diamonds, and 700 emeralds f
ExtremeBDS [4]

Answer:

129 bracelets and 59 necklaces.

Explanation:

Kings departments store wants to maximize profit by making a combination of its two products necklaces and bracelets. The King store should use a strategy so that it can generate maximum profit with its available rubies, diamonds and emeralds.  

$250a + $500b = Maximum Profit

For rubies : 2a + 5b = 625

For Diamonds : 3a + 7b = 800

For Emeralds: 4a + 3b = 700

Solving the equation we get maximum profit value of $61,750.The King departments stores should make 129 bracelets and 59 necklaces which will bring maximum profit to the store.

7 0
3 years ago
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realizatio
GrogVix [38]

Answer:

$12,000

Explanation:

The amount of a gain or loss on realization is the difference between the sum of capital balances of partners and cash balance after settling all liabilities.

Total capital balances = $30,000 + $20,000 = $50,000

Total loss = Cash balance - Total capital balances = $38,000 - $50,000 = $12,000 loss.

Therefore, the amount of loss on realization is $12,000.

6 0
3 years ago
Punitive damages: a. are a small amount of compensation given to the plaintiff. b. are like actual damages but do not seek to de
lukranit [14]

Answer:

The correct answer is letter "D": are damages in excess of the plaintiff's injuries, awarded to punish the defendant.

Explanation:

Punitive Damages are penalties passed to the defendant of court cases on top of compensations they must pay to plaintiffs because of the faults they committed. The punitive damage is not provided to the plaintiffs but is imposed to punish defendants when their faults are negligent and should not be repeated.  

Thus, <em>punish damages are imposed in an attempt to avoid other individuals to commit the same gross faults.</em>

6 0
3 years ago
Maria is flagged as a special customer at your firm because she is a satisfied customer, returns to your company to buy, puts he
KIM [24]

Answer:   Advocate

                     

Explanation: In simple words, advocate level is the topmost stage in the loyalty ladder. In this stage, the customer gets used to for the brand and along with repurchasing it he or she also works as a promotional toll for the brand.

In the given case, Maria has been repurchasing the products from the firm and is also praising the brand online. Hence we can conclude that she is on the advocate rung.

4 0
3 years ago
Other questions:
  • Which global enterprises employee used to work for the los angeles police department?
    9·1 answer
  • Which of the following is not considered cash for financial reporting purposes?
    12·2 answers
  • If output equals a*(5k + 2l), what is output if a equals 2,000, capital equals 10, and labor equals 100?
    7·1 answer
  • Robin is working with a little autistic boy, trying to increase the amount of eye contact he can provide. She says, "Look at me.
    13·1 answer
  • You may use your financial calculator or present value tables for this question. Firm A leased equipment with a list price $1,21
    10·1 answer
  • CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year for
    13·1 answer
  • Navy core values, though fundamental to Naval operations, are overlooked in a TCRM situation. A ) True B ) False
    8·1 answer
  • Robert only consumes X and Y, and his indifference curves have the usual convex shape. Consider the consumption bundles (3, 9),
    14·1 answer
  • At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agr
    13·1 answer
  • 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!