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
Nata [24]
3 years ago
10

You buy a stock for which you expect to receive an annual dividend of $2.10 for the fifteen years that you plan on holding it. a

fter 15 years, you expect to sell the stock for $32.25. what is the present value of a share for this company if you want a 10% return
Business
1 answer:
kap26 [50]3 years ago
6 0
<span>You are given an annual dividend of $2.10 for the fifteen years that you plan on holding it. Also, after 15 years, you are given to sell the stock for $32.25. You are asked to find the present value of a share for this company if you want a 10% return. You have to mind that the future stock for 15 years is $32.25. You are not only going to mind the present value of the annuity at $2.10 but also the $32.25.

With the interest of r = 10% and number of years of n = 15, we get
PVIFA = 7.6061.

For annuity we have,
$2.10 * 7.60608 = $15.973

For $32.35 with r = 10% and n = 15
PVIF = 0.239392

Thus for the present value of selling price,
$32.25 * 0.239392 = $7.720

Thus the present value of the share
P = $15.973 + $7.720
P = $23.693
</span>
You might be interested in
Pension plan assets were $200 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, re
Nata [24]

Answer:

Pension plan assets at the year end will be $214

Explanation:

Wee have given pension plan assets = $200 million

Return on plan assets = 5%

So return will be equal to = $200×0.05 = $10 million

Cash contribution is given $12 million

Retiree benefits is $8 million

We have to find the amount of pension plan assets at the year end

Pension plan assets is equal to = Plan assets at beginning of the year + actual return - retiree benefits = $200 + $10 +$12 - $8 = $214

So pension plan assets at the year end will be $214

7 0
3 years ago
Nick is working for an advertising firm making $60,000 per year but considers starting his own advertising company. Nick has det
adoni [48]

Answer:

$66,000

$304,000

Explanation:

The computation is shown below:

Total implicit cost is

= Job left cost + forgone the return on investment

= $60,000 + $100,000 × 6%

= $60,000 + $6,000

= $66,000

And, the total cost is

= explicit cost + implicit cost

= $50,000 + $180,000 + $8,000 + $66,000

= $304,000

We simply applied the above formulas so that the correct values could come

4 0
2 years ago
Producer surplus in a perfectly competitive industry is the same thing as revenue. the difference between profit at the profit-m
Damm [24]

Answer:

the difference between revenue and variable cost

Explanation:

As we know that

Producer surplus is = Total Revenue - Total Variable Cost

So here we can see that the producer surplus would be the difference between the revenue & the variable cost in the industry i.e. perfectly competitive

Hence, the second last option is correct

And, the other options are wrong

6 0
2 years ago
why might the cost of a mortgage loan be greater than the cost of using unsecured corporate debt to finance corporate real estat
Zolol [24]

For real estate income property, mortgage loans are often made on a non-recourse basis. This means that the risk of default must be included in the mortgage interest rate.

<h3>What is a mortgage loan?</h3>

A mortgage is a form of loan used to purchase or maintain a home, land, or another type of real estate. The borrower agrees to repay the lender over time, often through a series of monthly payments divided into principal and interest. The property is subsequently put up as collateral for the loan.

Borrowers must apply for a mortgage through their preferred lender and meet specific criteria, such as credit score requirements and down payments. Mortgage applications are rigorously scrutinized before they reach the closing stage. Mortgage types vary according to the borrower's needs, such as conventional and fixed-rate loans.

To learn more about a mortgage loan, click

brainly.com/question/15082835

#SPJ4

8 0
1 year ago
In each diary kept by the owner/engineer's or contractor's personnel, entries should be made: A. to document every working day,
Sav [38]

According to the construction management principle, in each diary kept by the owner/engineer's or contractor's personnel, entries should be made "<u>to document every working day, whether any work is performed or not, or even if you did not go to the project site that day."</u>

<h3>Purpose of Site Diary in Construction Management</h3>

A Site Diary in Construction management is a record book written to document the daily activity of the construction site.

A well-written site dairy is expected to show all the delivered or missing services and materials during the construction projects.

Hence, in this case, it is concluded that the correct answer is option A.

Learn more about Site Diary here: brainly.com/question/1171958

4 0
2 years ago
Other questions:
  • Organizational culture refers to: a. the complex set of ideologies, symbols, and core values that are shared throughout the firm
    9·1 answer
  • Louise Fulkerson is president of the Student Marketing Association at Baylor University. Louise and the otherofficers want to co
    11·1 answer
  • Chelsea, Inc. uses the job costing method and uses direct labor hours as the allocation base. In 2016, the total estimated and a
    10·1 answer
  • Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,
    10·1 answer
  • You have been assigned as the project manager for a new project that involves deployment of a new software application to all th
    11·1 answer
  • Diamond Productions reports a net change in cash of $50,000 on its statement of cash flows. What is the net cash provided by ope
    7·1 answer
  • At the beginning of 2017, Wertz Construction Company changed from the completed-contract method to recognizing revenue over time
    6·1 answer
  • Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive press
    13·1 answer
  • How do i give brainliest if you answer correctly will give u brainliest
    9·2 answers
  • Granval thinks a partnership will reduce his personal financial responsibility. this is true only if?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!