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
Nadya [2.5K]
4 years ago
13

Saine Corporation will pay a $3.06 per share dividend next year. The company pledges to increase its dividend by 6 percent per y

ear, indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the company’s stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
rodikova [14]4 years ago
7 0

Answer:

$51

Explanation:

Given that,

Dividend paid next year, D1 = $3.06 per share

Growth rate of dividend per year, G = 6 percent per year

require a return on investment, Ke = 12 percent

Stock Price = D1 ÷ (Ke - G)

                    = 3.06 ÷ (0.12 - 0.06)

                   = $51

Therefore, I'll pay $51 for the company’s stock today.

You might be interested in
You've decided to buy a house that is valued at $1 million. You have $150,000 to use as a down payment on the house, and you tak
Sergeeva-Olga [200]

Answer:

a. $6,237.

Explanation:

We use the PMT formula i.e shown in the attachment below:

Data provided in the question

Present value = $850,000

Future value = $0

Rate of interest = 8% ÷ 12 months = 0.66666%

NPER = 30 years × 12 months = 360 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the  monthly mortgage payment is $6,237

3 0
3 years ago
Please, help, I will award brainliest!
AysviL [449]

For lower income people:

The more the government puts towards health care would mean there would be a higher quality of life for low income areas allowing them to get access to needed healthcare for no cost to them.

For higher income people / corporate entities:

it would mean higher taxes on the 1% and 0.1% of the richer people and raising taxes on corporations such as higher taxes on dividends.

Summary:

For a SoL on one side to change another side would have to lose.

3 0
3 years ago
Provided service to srijana store and received cash Rs 5000.<br>​
Artist 52 [7]

Answer:

what we want to tell about ?or your question is not proper type it full and proper .

I can't understand what you want to ask ?

6 0
3 years ago
Due to impending labor strife over planned layoffs in its Silicon Valley headquarters, a social networking company has decided t
Ivanshal [37]

Answer:

putting a halt on the layoffs

Explanation:

This strategy should begin by putting a halt on the layoffs. This should be top priority since the layoffs themselves are the main cause for the criticism that the company is receiving and this criticism is the sole reason as to why its market position and staff productivity has fallen drastically. People think the company is failing and the staff is scared that they will eventually be fired. By stopping layoffs and waiting for a market recovery you give other better options a chance to arise and more efficient strategies to take effect.

6 0
3 years ago
For a levered firm, flotation costs should
KengaRu [80]

Answer:

The answer is option B. For a levered firm, flotation costs should <u>be spread over the life of a project, thereby reducing the cash flows for each year of the project.</u>

Explanation:

When a company’s securities are listed on a public exchange, there is a general saying that securities are floated on the exchange. That is how the name flotation costs came about.

Flotation is actually the costs  incurred by a company in issuing its securities to public.  it is also called issuance costs.

Examples of Flotation costs include charges paid to the investment bankers, lawyers, accountants, registration fees of the securities regulator and the exchange on which the issue is to be listed.

Flotation cost would vary based on several factors, such as company’s size, issue size, issue type (debt vs equity),

In summary, Flotation costs are the cost a company incurs to issue new stock making new equity cost more than existing ones.

Business analysts argue that flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.

It is based on this premise that i chose option B, which states that flotation costs be spread over the life of a project thereby reducing the cash flows for each year of the project at levered firms.

5 0
3 years ago
Other questions:
  • The following information pertains to the Flying Fig​ Corporation:Total Units for information given7 comma 000Fixed Cost per Uni
    14·1 answer
  • The stock price of company x doubled over the past year, the stock price of company z decreased by over 50%. if the market is ef
    9·1 answer
  • operation, 2,300 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the m
    12·2 answers
  • York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 sh
    10·1 answer
  • A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and layi
    13·1 answer
  • American president obama enacted a five-year freeze on federal salaries to help the government achieve its objectives of reducin
    15·1 answer
  • As a manager of the NHQ project, you are performing quantitative risk analysis. You have discovered that one project risk has a
    10·1 answer
  • Select the correct revenue recognition principle for each of the following. Clear All Recognize revenue over the passage of time
    8·1 answer
  • Ben started a business on 1 January 2015 using rented premises. At 31 December 2015 Ben owed $1400 for rent. The rent charge to
    15·1 answer
  • The great thing about IRAs is that you can withdraw money anytime you want, with no financial penalty. True False
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!