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Mrac [35]
3 years ago
11

bon chance inc has an odd dividend policy the company has just paid a dividend of $8.50 per share and has announced that it will

increase the dividend by $6.50 per share for each of the next four years and the never pay another dividend if you require a return of 16 percent on the company's stock how much will you pay for a share today
Business
1 answer:
zysi [14]3 years ago
7 0

Answer:

      \large\boxed{\large\boxed{\$65.90}}

Explanation:

The value that you would be willing to <em>pay for a share today</em> should be the present value of all the <em>dividends </em>you will receive.

The present value of the <em>dividends</em> is equal to the sum of each <em>dividend </em>discounted at the required <em>return</em> rate.

The dividends will be:

  • First year: <em>$8.50 + $6.50</em> = $15.00
  • Second year: $15.00 + <em>$6.50</em> =$21.50
  • Third year: $21.50 + <em>$6.50</em> = $28.00
  • Fourth year: $28.00 + <em>$6.50</em> = $34.50

You must discount each divident at the rate of <em>16%</em>: r = 0.16

Hence, the equation is:

              \frac{\$15.00}{(1+0.16)}+\frac{\$21.50}{(1+0.16)^2}+\frac{\$28.00}{(1+0.16)^3}+\frac{\$34.50}{(1+0.16)^4}

Compute and you obtain $65.90

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Answer:

Buydown, is the right answer.

Explanation:

This is a buydown mortgage arrangement because in the buydown financing technique the buyer tries to take lower interest rates in the initial year of the loan period. Moreover, some mortgage lenders provide buydown discounts or points as part of their promotion. Secondly, the builder pays the initial payment to the mortgage institution that results in the lower buyer’s payment.

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What do you expect the level of implied demand uncertainty to be for jasmine rice produced by Thailand at a supermarket? Explain
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Answer:

Implied demand uncertainly resulting uncertainty for the supply chain given the portion of the demand, the supply chain must handle & attributes the customer desires.

Explanation:

Implied demand uncertainly resulting uncertainty for the supply chain given the portion of the demand, the supply chain must handle & attributes the customer desires.

  1. It is related to customer needs & product attributes.
  2. The level of implied demand uncertainly of jasmine rice is low, because the demand& supply of jasmine rice is predictable
  3. The jasmine rice has low contribute margin, accurate demand forecasts, low stock out rates and virtually no markdown.
  4. These characteristics match well with Fisher’s chart of characteristics for product with highly certain demand.
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CPM, or Cost per thousand impressions, is a metric that represents the cost generated per thousand impressions of the ad. Obviously they are not literal impressions, but the number of times that certain advertising was displayed to the public on the internet.

By choosing CPM as a form of payment, the advertiser agrees to pay the publisher of the ad a pre-determined amount for every thousand impressions. This means that the publisher receives compensation for each ad shown, having more predictability of profit.

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