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marta [7]
4 years ago
5

The In-Tech Co. just paid a dividend of $1 per share. Analysts expect its dividend to grow at 25 percent per year for the next t

hree years and then 5 percent per year thereafter. If the required rate of return on the stock is 18 percent, what is the current value of the stock?
Business
1 answer:
djverab [1.8K]4 years ago
6 0

Answer:

Explanation:

D1 = $1(1+0.25) = 1.25

D2 = $1.25(1+0.25) = 1.5625

D3 = $1.5625(1+0.25) = 1.953

D4 = $1.953(1+0.25) = $2.05

Current value = P0 =

= 1.25/(1+0.18) + 1.5625/(1+0.18)^2 + 1.953/(1+0.18)^3 + 2.05/(0.18-0.05) * (1+0.18)^(-3) =

=$12.96

Current value of the stock is 12.96

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Various financial data for the past two years follow.
Katarina [22]

Answer:

Total Productivity:

* For last year: 1.70

* For this year: 1.48

Explanation:

We have the total productivity is equal to Sales/ Total resources spent.

So, the calculation for productivity as followed:

<u>* For last year:</u>

 + Sales = 200,010

 + Total resources spent = Labor + Raw materials + Energy + Capital + other = 30,010 + 35,100 + 5,100 + 45,500 + 2,100 = 117,810

=> Productivity = 200,010 / 117,810 = 1.70

<u>* For this year:</u>

 + Sales = 201,050

 + Total resources spent = Labor + Raw materials + Energy + Capital + other = 40,010 + 41,500 + 6,010 + 45,500 + 3,010 = 136,030

=> Productivity = 201,050/136,030 = 1.48.

7 0
4 years ago
A college professor's compensation package includes the total cost of a $350-per-month health insurance plan, the total cost of
lubasha [3.4K]
The answer would be 3,00
4 0
3 years ago
Suppose, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes
Anvisha [2.4K]

Answer:

1. Investigate the invoices that have been send out (sequencing, their details and amounts) and cross check the invoices that have been paid up. Then for invoices paid up verify that date descriptions and amounts have been entered correctly or as purported by the co-worker.

2. The Cash Account is Decreasing after the correction.

3. It is not professional to accepts such special treats from co-workers for helping them in the workplace.

Explanation:

All financial information must be treated with great caution as reckless acts my constitute to fraud and irregularities.

Exercise Professionalism by doing a bit of background check on error and the intent of the worker. Also allow internal controls to take course in terms of authorization privileges to alter transactions.

5 0
3 years ago
Alan, 46, and Donna, 33, are filing a joint return for 2019. Neither is blind, and neither can be claimed as a dependent. They d
maksim [4K]

Answer:

$24,400

Explanation:

Assuming that Alan and Donna are married and they decide to file their taxes together, the standard deduction for 2019 taxes was $24,400.

The standard deduction increases if you or your spouse is over 65 years old, or if any of you is blind. The standard deduction generally increases a little bit every year, e.g. during 2018 it was $24,000 and for 2020 it is $24,800.

8 0
3 years ago
Nathan goes to a store to purchase laundry detergents. When Nathan looks around to make a brand selection, he realizes that he l
lorasvet [3.4K]

Answer:

its either inert set or the inept set

Explanation:

Inert set: Those brands of which the consumer is aware, but towards which he or she is basically indifferent. Brands in this set are generally considered acceptable by the consumer when preferred brands are not available

Inept Set. brands that a buyer is aware of when considering a purchase, thinks poorly of, but uses in some way as a source of information. See: Inert Set Evoked Set.

these are the 2 definitions for both of them

7 0
4 years ago
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