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Anon25 [30]
4 years ago
15

Antiques R Us is a mature manufacturing firm. The company just paid a $7 dividend, but management expects to reduce the payout b

y 5 percent per year indefinitely. Required : If you require an 11 percent return on this stock, what will you pay for a share today?
Business
1 answer:
denis23 [38]4 years ago
7 0

Answer:

$41.56

Explanation:

Since Antiques' dividends have a negative growth rate, we must adjust the perpetuity growth formula to recognize that negative growth:

stock price = [dividend (1 + growth rate)] / (required rate of return - growth rate)

  • dividend = $7
  • growth rate = -5%
  • required rate of return = 11%

stock price = [$7 (1 - 5%)] / (11% - -5%) = ($7 x 95%) / 16% = $6.65 / 16% = $41.56

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Wenjing purchases a bond for $2,000 with 12 remaining $40 quarterly coupon payments. The bond broker who sells her the bond reas
egoroff_w [7]

Answer:

Wenjing

The par value that would result in the return the bond broker promises is:

= $1,333.

Explanation:

a) Data and Calculations:

Bond amount paid = $2,000

Quarterly coupon payments = $40

Remaining coupon payments = 12

Bond maturity period = 3 years (12/4)

Promised returns per quarter = 3%

Par value of bond = Quarterly premium/Quarterly returns in percentage = $1,333 ($40/0.03)

Check: 3% of $1,333 = $40

This implies that the bond's annual interest rate = 12% (3% * 4)

8 0
3 years ago
Give an example of an economic activity from a traditional economy that is seen in today's market
tankabanditka [31]
Agriculture - This economic activity is ubiquitous in both traditional and modern markets. Since the Neolithic period, humans have domesticated different crops and animals for human consumption. However, in traditional economies, agriculture is less mechanized than in modern markets. Nevertheless, the basic production of crops and animals in traditional markets is fundamentally the same as mechanized production of the same in modern markets. 
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4 years ago
Which of the five competitive forces is influencing a passenger train line, when a new automobile manufacturer causes a reductio
FromTheMoon [43]

Hi thank you for using brainly.com

<span>The answer to this question is “availability of substitutes“. The reduction in the number of people riding trains is due to the fact that a new substitute, automobile, is available in the market.</span> <span>
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3 years ago
In order to lose weight, energy expenditure must exceed energy intake. negative energy balance occurs when the body is using mor
cupoosta [38]
Arthur will have to expend the energy that is stored in the 8-week period, and we may calculate this using the provided information.

Total fat stored = 12 lb
Total energy = 12 * 3500 = 42,000 kcal
Per week, he has to have a negative balance of:
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First, we write the daily input:
3,000 kcal

Output:
1,800 kcal (basal metabolic rate)

Negative balance:
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Burned:
b

Now, we may use the equation:

Input = deficit + output + burned

burned = 3,000 - 6,000 - 1800

Arthur must burn a total of 4,800 kcal daily if he wishes to lose that much weight in the given amount of time.
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4 years ago
What process is designed to help new employees become familiar with their jobs and organizations?.
emmasim [6.3K]

The employee orientation process is intended to aid new hires in becoming acquainted with their positions and organizations.

An entity, such as a business, institution, or association, that is made up of one or more people and has a specific function is known as an organization or organization (Commonwealth English; see spelling variations). The word is derived from the Greek word organon, which also refers to an instrument, an organ, and many tools. Comparatively speaking, consider the idea of social groups, which can encompass non-organizations.

The terms "organizations" and "institutions" can be used interchangeably, but according to Jack Knight, organizations are either a more condensed version of institutions or a group of institutions; the two are different in that organizations comprise internal institutions (that govern interactions between the members of the organizations).

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8 0
1 year ago
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