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Rudiy27
3 years ago
13

ConsGrough, Inc. has increased its annual common dividend by 3% in each of the years that the company has existed. If you believ

e that the company can continue to do so indefinitely, then what price would you be will to pay for ConsGrough if the required rate of return is 6% and the dividend that it paid yesterday was $5?
Business
1 answer:
Salsk061 [2.6K]3 years ago
8 0

Answer: $171.67 would be the price of the security

Explanation: This problem relates to dividend growth model, which can be shown as follows :-

=\frac{D_{1}}{P_{0}}+\:G

where'

d1 = expected dividend

p = price

g = growth rate

therefore,

=\frac{\$5\left ( 1+3\% \right )}{P_{0}}+\:3\%

solving this we get

p_0=\$171.67

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Markets provide the efficient amount of a good or service when <span>externalities and public goods are absent.
Externalities in this case refers to an unpredictable occurence such as natural disasters, and public goods refers to the goods that given from the government for lower or higher than the market price</span>
4 0
3 years ago
Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a
vagabundo [1.1K]

Answer

Price of bond = 17.96825

Explanation:

Bond price = ∑(C / (1+YTM)^{n} )+  P /(1+i)^{n}

where

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            C = Coupon payments

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put values in above equation

  price = (5.66%/2) × 2000 × (0.31746) + ( 2000 ÷ 4.595×10^{18})

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3 0
3 years ago
To encourage compliance with its labor standards, the ILO relies on all of the following except:A) PublicityB) DiplomacyC) Techn
anygoal [31]

Answer: Option (D)

Explanation:

<em>ILO</em> is abbreviated as <em>International Labour Organization</em> is known as the UN body whose decree is to provide advancement in the social justice and thus also promote the respectable and appropriate work thereby setting and developing the international labour specifications. It is considered as the first specialised body of the United Nations.

ILO does not uses Lawsuits in order to encourage compliance with the labour standards.

8 0
3 years ago
Activity-based costing accumulates overhead in one cost pool, then:_____.a. assigns the overhead to products and services by mea
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Answer:

c. allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.

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Like if we allocate the setup cost so we have to allocated with the number of machine setups.

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5 0
3 years ago
A fillorkill order will be A. will be cancelled at the end of the trading day if not executed by that time. B. executed immediat
katen-ka-za [31]

Answer:

D) will be cancelled if not immediately executed at the stated price or better.

Explanation:

A Fill-Or-Kill order can be regarded as

an order that is been made in order

to buy/sell a stock and it must be executed in entirety and immediately. If not executed immediately the order might be cancelled since partial Execution is not part of the process of Fill-Or-Kill order. It should be noted that A fillorkill order will be cancelled if not immediately executed at the stated price or better.

4 0
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