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
Sonja [21]
3 years ago
6

DT Motors paid its first annual dividend yesterday in the amount of $.15 a share. The company plans to double the dividend in ea

ch of the next 3 years. Starting in Year 4, the firm plans to pay $1.50 a share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 13.8 percent?
Business
1 answer:
devlian [24]3 years ago
5 0

Answer:

Price = $8.92

Explanation:

Dividend from yr1 to yr3 will be multiplied by 2 since it doubles per year;

D1 = $0.15*2 = $0.30

D2 = $0.30 *2 = $0.60

D3 = $0.60 *2 = $1.20

D4 (onwards) = $1.50

Next, find the present value (PV) of each dividend;

PV(D1) = 0.30/(1.138) = 0.2636

PV (D2) = 0.60/(1.138²)= 0.4633

PV(D3 ) = 1.20/ (1.138³) = 0.8142

PV(D4 onwards) = \frac{[\frac{1.50}{0.138} ]}{1.138^{3} } = 7.3754

To find the price of the stock today, sum up present values above;

= 0.2636 + 0.4633 + 0.8142 + 7.3754

Price = $8.92

You might be interested in
SmartKids, a textbook publisher, is considering investing in a software company that collects and stores data. What beta should
klemol [59]

Answer:

Thw correct answer is A. the beta for software companies that collect and store data.

Explanation:

The life cycle of software launching, in software engineering, is the set of progress states of the computer application creation project, in order to identify how much progress has been made and how much is left until the end. Each important version of a product generally goes through a stage in which the new features are added (alpha stage), then a stage where errors are actively eliminated (beta stage), and finally a stage where all the products have been removed. important errors (stable stage). The intermediate stages can also be recognized. The stages can be formally announced and regulated by product developers, but the terms are sometimes used informally to describe the status of a product. Normally many companies use common code names (for example, the Microsoft project for Cluster was called until its launch as Team Wolf) for versions before the launch of a product, even if the product and features are not secret.

4 0
3 years ago
What is the role of business in a global economy?
posledela

Answer:

In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. Without business, the economy would be very inefficient and/or very primitive.

Explanation:

5 0
2 years ago
________ feasibility refers to projecting whether the system will operate and be used once it is installed.
ivann1987 [24]
The answer is Technical
I hope that helped
7 0
3 years ago
Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each div
PIT_PIT [208]

Answer:

OPTIMUS COMPANY

Home Division Responsibility Report For the Year Ended December 31, 2020

The report is attached in form of a variance report with comments.  Where the variance is not indicated, it means that it was neither favorable nor unfavorable.

Explanation:

A responsibility report is usually presented by a division that is an investment center.  An investment center has responsibility for return on investments.

The investment center takes charge of the cost, revenue, profit, and investments of the division.  It is expected to produce returns on its investment that will be favorable to the shareholders of the company.  It is directly responsible for profitability of the division vis-a-vis the capital investments made in the center.  It is unlike other divisions like cost center, revenue center, and profit center, which narrowly report their performances in accordance with their responsibilities.

This is why it does not only report on the cost, but also the revenue, the profit and the returns on investment achieved during a period.  An investment center is, therefore, the largest division of an entity.

Download xlsx
3 0
2 years ago
If it costs $75,000 to put on an event and total revenue is $135,000, what is the profit as a percentage of revenue?
Nuetrik [128]

Answer:

44.44%

Explanation:

Profit is obtained by subtracting cost from revenue.

I,e.,

Profit = revenue - cost.

In this case,

Profit = $135,000 - $75,000

Profit = $60,000

As a percentage of revenue

= $60,000/ $135,000 x 100

= 0.44444 x 100

= 44.44 %

4 0
2 years ago
Other questions:
  • Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical
    15·1 answer
  • Which of the following is another term for a planned economy?
    12·1 answer
  • If the depreciable investment is $1,000,000 and the MACRS 5-Year class schedule is: Year-1: 20%; Year-2: 32%; Year-3: 19.2%; Yea
    5·1 answer
  • All of the following statements are TRUE about variable annuities EXCEPT: (A) Monies invested are professionally managed in acco
    15·1 answer
  • e. Which of the following statements is true? Deflation means that the price level is falling, whereas with inflation the inflat
    11·2 answers
  • When a securities firm acts as a(n) ____, it makes a market in specific securities by maintaining an inventory of those securiti
    5·1 answer
  • ugh I missed my BFF's birthday it was march 12 but she wasn't online, she said she would be gone three weeks and its been three
    15·2 answers
  • ​Inflation, nominal interest​ rates, and real rates. From 1991 to​ 2000, the U.S. economy had an annual inflation rate of around
    9·1 answer
  • Sorry about the previous qn I meant clauses of a memorandum of association​
    11·1 answer
  • a bookkeeping list of assets (money, property, ideas...), identified ownership, and transactions that record the transfer of own
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!