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
Soloha48 [4]
3 years ago
10

Grandiose Growth has a dividend growth rate of 20%. The discount rate is 15%. The end-of-year dividend will be $3 per share. Wha

t is the present value of the dividend to be paid in year 1? Year 2? Year 3?
Business
1 answer:
11111nata11111 [884]3 years ago
5 0

Answer:

The present value of dividend to be paid at the end of year 1, year 2, and year 3 are $2.60, $2.95, and $2.84 respectively.

Explanation:

The end of the year dividend is $3 per share.

The dividend growth rate is 20%.

The discount rate is 15%.

PV of dividend to be paid at the end of year 1

= \frac{end\ of\ the\ year\ dividend}{(1+discount\ rate)^n}

= \frac{3}{(1 + .15)^1}

= \frac{3}{1.15}

=$2.60

PV of dividend to be paid at the end of year 2

=\frac{end\ of\ the\ year\ dividend}{(1 + discount\ rate)^n}

=\frac{3\times (1+.20)}{(1+.15)^2}

=\frac{3.60}{1.322}

=$2.72

PV of dividend to be paid at the end of year 3

=\frac{end\ of\ the\ year\ dividend}{(1 + discount\ rate)^n}

=\frac{3\times (1+.20)^2}{(1+.15)^3}

=\frac{4.32}{1.52}

=$2.84

You might be interested in
He gross domestic product (gdp) of the united states is defined as the
Mashcka [7]
The worlds most largest national economy in nominal terms. Is the second largest in purchasing power parity (ppp).
representing 22 percent of nominal global gpd and 17 percent of gross world product (gwd)
5 0
3 years ago
A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 15 loans per da
anyanavicka [17]

Answer:

a) 46.7, 80 b) 20, 60   c) yes

Explanation:

a) % utilization= utilization/design capacity × 100

                       = 7/15 × 100

                       = 46.7%

   % efficiency= efficiency/design capacity × 100

                              = 12/15 × 100

                                  =80%

b) Utilization= 2/10 × 100 = 20%

 Efficiency= 6/10 × 100= 60%

c) A system with higher efficiency ratios will always have higher utilization as these systems will have lesses number of failures

6 0
3 years ago
Which of the following in not an example for safeguarding inventory? Group of answer choices Matching receiving documents, purch
Tomtit [17]

Answer:

returning inventory that is defective or broken

Explanation:

Inventory reffered to as set of finished goods/ products as well as other goods that are used in production. It is regarded as current asset on the balance sheet of a company. Inventory safeguarding is very essential in a company to keep them safe, there are some ways in which this can be done.

With the aid of technology such as security cameras which can record any form of theft, door alarms and others can protect inventory from both external/internal threats. Some of thers common examples for safeguarding inventory are;

✓storing inventory in restricted areas

✓physical devices such as two-way mirrors, cameras, and alarms

✓matching receiving documents, purhcase orders, and vendor's invoice

3 0
2 years ago
Suppose that the organic-produce industry is composed of a large number of small firms. In recent
masha68 [24]

Answer:

The correct answer is option d.

Explanation:

An industry is comprised of a large number of small firms.  

Because of losses, many firms have left the industry.  

This will cause the industry supply to decline.  

The industry supply curve will move to the left.  

The new supply curve will intersect the demand curve at a higher point.

This leftward shift in the supply curve will cause the equilibrium price to increase and equilibrium quantity to decline.

3 0
3 years ago
An engineering firm wrote a new policies and procedures manual that helped everyone know exactly what to do and how to do it. Wh
defon

Answer:

The correct answer is: the cost of it.

Explanation:

To begin with, knowing that planning, organizating, controling and directing are the basis of an structured company in order to achieve efficiently those there is a cost that has to be done, therefore that the major drawback of becoming more structured in the company is the cost of doing it, due to the fact that creating documents and teaching every one how to use it and more, the costs of the company will increase as well as the company will become more structured.

3 0
3 years ago
Read 2 more answers
Other questions:
  • The _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency pers
    5·2 answers
  • Significant noncash investing and financing activities are disclosed because they
    10·1 answer
  • As an MNC (multinational corporation) seeks to balance and honor the ethical standards of both the home and host countries, conf
    13·1 answer
  • Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand
    9·1 answer
  • Why did african americans prefer sharecropping to wage labor?
    9·1 answer
  • Check out my channel it called It'z Jennie AMV! Thanks! If you like the video make sure to Subscribe and click the bell so that
    12·2 answers
  • 1) In the TOPCASH model, Analytics considerations include:
    8·1 answer
  • Katrine doesn't understand all of the various aspects of automobile insurance and relies on her local independent State Farm Ins
    9·1 answer
  • According to Percy Barnevik, how should a global manager respond when told "You canât do that in Brazil because of current gover
    15·1 answer
  • Select all the correct answers.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!