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
For each long-distance call anywhere in the continental United States, a new phone service will charge users $0.30 per minute fo
Vaselesa [24]

Answer:

The average length of his calls will stay the same. It's the cost that would change, not the length

Explanation:

4 0
3 years ago
CVS pharmacy collects data from bar-coded products. These data can be evaluated and combined to monitor which CVS products are i
Pani-rosa [81]

Answer:

InfoScan.

Explanation:

A UPC is an acronym for universal product code. UPC is typically used for the identification of a specific product and its manufacturer (vendor) through a unique code that is printed on the product.

Basically, a universal product code (UPC) comprises of two (2) main parts;

A machine-readable barcode that contains sets of vertical black lines.

A unique twelve (12) digit number placed beneath or adjacent to the machine-readable barcode.

The first six-digits of the UPC represents the manufacturer and is printed on all of its products while the next five-digits is the product's unique reference number (item number) and the last digit is typically known as a check digit, used for the verification of the authenticity of a UPC.

Generally, the universal product code are usually scanned with a barcode scanner and this makes it easier to identify a product, as well as its price.

In this scenario, CVS pharmacy collects data from bar-coded products, which can be evaluated and combined to monitor its products that are in demand by customers. Also, this method is used to track pricing data to make sure that its pricing remains competitive among rivals. Thus, thiis is an example of InfoScan used for systemically scanning price information on products.

3 0
3 years ago
According to the video, in which areas are Accountants and Auditors involved? Check all that apply.
Igoryamba

Answer:

1, 4, 5, 6

Explanation:

Just did the assignment.

8 0
3 years ago
Read 2 more answers
When you're attending a college fair, the best way to make use of your time is to
almond37 [142]
See which college interests you the most
7 0
4 years ago
Read 2 more answers
Elvis values the first gravy sandwich at $5, the second at $4.50, and the third at $4. If he buys three sandwiches for $4 each,
12345 [234]

Answer:

Consumer Surplus = $1.50

Explanation:

Consumer surplus is the difference between what a consumer is willing to pay for a given amount of goods or services and what he ends up paying.

Therefore,

Consumer surplus = Amount consumer is willing to pay less amount paid

Given that

Elvis is willing to pay 5 + 4 + 4.50 = 13.50 for three

Price of 3 sandwich = 3 × 4 = 12

Consumer surplus = 13.50 - 12

= $1.50

6 0
3 years ago
Other questions:
  • Tim babysits for three hours on the weekend. His current babysitting job pays him $7 an hour. He has a new babysitting job offer
    6·2 answers
  • What are the two major energy sources obtained from the ocean floor?
    10·1 answer
  • Amy Washington is continuing to review business practices.​ Currently, she is reviewing the​ company's property,​ plant, and equ
    15·1 answer
  • Massachusetts Manufacturing has redesigned its promotional strategy. The company now utilizes a system that combines all the ele
    7·1 answer
  • Oregon, there are several Italian restaurants, each offering slightly different items prepared in slightly different ways. It is
    5·1 answer
  • The Freed Company produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the splitoff poin
    13·1 answer
  • Fern Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $33,000 per ye
    12·1 answer
  • Marcy's, Inc., operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2016 third-quarter
    9·1 answer
  • Match each Investment or savings option with the income source(s) It provides to investors.
    13·1 answer
  • Safety and self-actualization are examples of
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!