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photoshop1234 [79]
3 years ago
15

Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.25% per

year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now
Business
1 answer:
kari74 [83]3 years ago
6 0

Answer:

$45.47

Explanation:

Data provided as per the given question below:-

Stock's Current Price = $35.25

Growth rate = 5.25%

Years = 5

The computation of stock's expected price is shown below:-

Stock's expected price = Stock's Current Price × (1 + growth rate)^5

= $35.25 × (1 + 5.25%)^5

= $35.25 × (1.0525)^5

= $35.25 × 1.29

= $45.47

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Answer:

The statement is: True.

Explanation:

Being a manager implies handling groups of people with diverse cultures, experiences, and personalities. To perform a proficient work, executives should have a well-defined method of working but be able to adapt it according to their subordinates and the situation the firm is facing. In some cases, their ego will have to be left behind to reach the company's goals.

5 0
3 years ago
A share of Citigroup stock represents:a.An IOU, or promise to pay, from Citigroup b.A right to require that Citigroup pays all p
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Answer:

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Depending on whether you are an investor or the corporation, a bond is more or less riskier than a stock.

If you are an investor, buying a bond is safer than buying stock since in a worse case scenario where the company goes bankrupt, bond holders are paid before than stockholders. Also bonds provide fixed periodic payments (coupons) and a final payment of the face of the bond at maturity date.

If you are the corporation, issuing bonds is riskier than issuing stock since you have the obligation of making fixed periodic payments to bondholders (coupons) and must pay the face value at maturity date. On the other hand corporations don't have any legal obligation to pay dividends.

6 0
3 years ago
An industry that has many companies offering the same basic product, but with some slight difference is
mario62 [17]

An industry that has many companies offering the same basic product, but with some slight difference is B. monopolistic competition.

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6 0
3 years ago
Under MSRB rules, a registered representative is prohibited from sharing in the gains and losses of a customer's account unless
skad [1K]

Answer:

D)

Explanation:

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3 years ago
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