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
ANTONII [103]
3 years ago
13

Stoneheart Group is expected to pay a dividend of $3.27 next year. The company's dividend growth rate is expected to be 3.4 perc

ent indefinitely and investors require a return of 12.2 percent on the company's stock. What is the stock price
Business
1 answer:
shepuryov [24]3 years ago
7 0

Answer:

The stock price is $37.16

Explanation:

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Formula to calculate the value of stock

Price = Dividend / ( Rate or return - growth rate )

Price = $3.27 / ( 12.2% - 3.4% )

Price = $3.27 / 12.2% - 3.4%

Price = $3.27 / 8.8%

Price = $37.16

You might be interested in
While planning a new product launch, Cassandra knew that the art department was ready to work on the promotional pieces right aw
k0ka [10]

Answer:

A. 1 week

Explanation:

This is true due to the fact that, Cassandra knew it would take about 1 week to establish the price point in the new product which she is planning to launch.

For the extra week it would have taken to get the paper could not hold again due to the fact that, it was already established that, it would take same day to get same paper rather than waiting for the paper to get to the strategy group in one week.

5 0
2 years ago
A ________ is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other document
RSB [31]

Answer: The correct answer is "B. Letter of credit".

Explanation: A letter of credit is an agreement of the person who issues the letter to pay a sum of money on receipt an invoice and other documents.

Is a payment mechanism used in international trade.

6 0
3 years ago
Read 2 more answers
JetBlue’s "Even More Space" initiative allowed passengers to buy seats with more legroom for a slightly higher price. The initia
8090 [49]

Answer: Upselling

Explanation:

Upselling is a customer development strategy whereby the customers are encouraged to buy an upgraded or higher end version of a particular product. Upselling therefore results in the customers spending more than what they initially planned for and this bring about increase in revenue to the company.

Therefore, the customer development strategy exemplified by JetBlue is Upselling.

7 0
3 years ago
What is the yield to maturity of a one-year, risk-free, zero-coupon bond with a $10,000 face value and a price of $9400 when rel
erma4kov [3.2K]

Answer:

.5%The yield to maturity on 1-year zero-coupon bonds is currently 8.5%; the YTM on 2-year zeros is 9.5%.

Explanation:

8 0
2 years ago
Explain the reasons why risk management might increase the value of a corporation?
vlada-n [284]

Explanation:

Risk management is to increase a firm ’s profitability;

(1) Raise all use of borrowing by them.

(2) Preserve their optimum budget for resources in accordance.

(3) Reduce potential distress-related expenses.

(4) Make use of their comparable liquidity advantages compared to the individual's liquidity capacity.

7 0
3 years ago
Other questions:
  • Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct compe
    5·1 answer
  • Woolford Inc. declared a cash dividend of $1.00 per share on its 2 million outstanding shares. The dividend was declared on Augu
    9·1 answer
  • A demand curve that is horizontal indicates that the commodity
    11·1 answer
  • If the Fed sells​ $2 million of bonds to the First National​ Bank, what happens to reserves and the monetary​ base?
    13·1 answer
  • According to the provisions of the _____, publically listed companies now must allow shareholders to vote on executive compensat
    11·1 answer
  • FAW Group is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launc
    5·1 answer
  • Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per ye
    9·1 answer
  • V
    12·2 answers
  • One reason demographic variables are the most popular bases for segmenting customer groups is because they ________. Group of an
    15·1 answer
  • An investor who goes short in a futures contract will _____ any increase in value of the underlying asset and will _____ any dec
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!