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stellarik [79]
3 years ago
6

Holtzman Clothiers's stock currently sells for $18 a share. It just paid a dividend of $3.5 a share (i.e., D0 = $3.5). The divid

end is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? Round your answer to two decimal places.
Business
1 answer:
ArbitrLikvidat [17]3 years ago
3 0

Answer:

Stock Price After 1 year = $19.08

Explanation:

The question is to determine the stock Price for one year for Holtzman Clothier

First we decide what the formula is  as follows

Stock Price after 1 year = The Current Price of Stock x ( 1 + Growth Rate)

The Current Stock Price = $18 a share

The Grwoth Rate = 6% a year

Based, on these given figures, we plug them into the formula as follows

Stock Price After 1 year = $18 x (1 + 6%)

Stock Price After 1 year = $18 x (1.06)

Stock Price After 1 year = $19.08

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A. Diversifying your portfolio to minimize risk while maximizing rate

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Explanation:

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The evolutionary development of the species H. sapiens a. is determined solely by environmental factors b. is a Mendelian trait
IRISSAK [1]

Answer:

The correct answer is letter "C": is the result of both genetic and environmental factors.

Explanation:

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4 years ago
Someone may choose to own a car instead of leasing because
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4 years ago
Read 2 more answers
Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE
Wewaii [24]

Answer:

13.56%

Explanation:

For the computation of return in equity first we need to follow some steps which are shown below:-

D/A = Debt ÷ Total assets

Debt = $200,000 × 65%

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Interest expense = $130,000 × 8%

= $10,400

Total assets = Total liabilities + Total equity

Total equity = $200,000 - $130,000

= $70,000

Net income = (EBIT - Interest expense) × (1 - Tax rate)

= ($25,000 - $10,400) × (1 - 0.35)

= $9,490

ROE = Net income ÷ Equity

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= 13.56%

7 0
3 years ago
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kicyunya [14]

Answer:

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