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
The industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical
Likurg_2 [28]
<span>the industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical review 

ANSWER: 
</span><span>are worth careful scrutiny by the managers of all companies because when a company's costs for one or more of the cost benchmarks are deemed "out-of-line," managers need to initiate corrective actions in the next decision round. </span>
5 0
3 years ago
How do you define success?
bearhunter [10]

Answer:

if ur happy then ig I could say ur successful

if made it to the top I could say ur successful

if u reached the destination if ur dream I would say ur successful

3 0
3 years ago
Read 2 more answers
A firm is reviewing an investment opportunity that requires an initial cash outlay of $336,875 and promises to return the follow
Fofino [41]

Answer:

The NPV of this investment is $64,581.75

Explanation:

Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:

NPV=-Investment+\frac{CF1}{(1+r)^{1} }+\frac{CF2}{(1+r)^{2}} +\frac{CF3}{(1+r)^{3}} +\frac{CF4}{(1+r)^{4}} +\frac{CF5}{(1+r)^{5}}

Where

NPV = Net Present Value

CF = The cash flow stated in the problem by year

r= discount rate (in our case, 0.08 or 8%)

Now, let´s solve this.

NPV=-336,875+\frac{100,000}{(1+0.08)^{1} }+\frac{82,000}{(1+0.08)^{2}} +\frac{76,000}{(1+0.08)^{3}} +\frac{111,000}{(1+0.08)^{4}} +\frac{142,000}{(1+0.08)^{5}}

NPV=-336,875+ 92,592.59 + 70,301.78 + 60,331.25 + 81,588.31+96,642.81

NPV=64,581.75

So, the net present value of this project is $64,581.75

Best of luck.

7 0
3 years ago
A company had $43 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:
iVinArrow [24]
Answer: The correct procedure is to “debit cash over and short for $43”.
6 0
3 years ago
A fast food restaurant chain has identified day commuters as its market segment. If the chain wants to persuade this segment to
salantis [7]

What would be the most likely place for it to advertise is: on buses and with signs on parking lots.

<h3>What is Advertisement?</h3>

Advertisement can be defined as the process of creating product awareness to attract customer so as make profit or to generate revenue.

Based on the given scenario the best place to advertise the food is on buses and with sign on parking lots since the restaurant chain has identified day commuters as it target customers doing this  will help to persuade this commuter to buy the fast food product.

Inconclusion what would be the most likely place for it to advertise is: on buses and with signs on parking lots.

Learn more about advertisement here:brainly.com/question/1658517

7 0
2 years ago
Other questions:
  • Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks
    10·1 answer
  • The Chattanooga Furniture store gets an average of 50 customers per shift. Marilyn Helms, the manager, wants to calculate whethe
    13·1 answer
  • Where to get ged certificate if you took test in 2008?
    15·2 answers
  • Recently there have been several mergers involving Big Four accounting firms. One such merger involved the firms of Arthur Young
    14·1 answer
  • Kiosks and carts are ideal locations for
    13·2 answers
  • Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a b
    10·1 answer
  • Rivian is considering an trucking assembly. The R1T assembly has an expected life of 5 years, will cost $95 million, and will pr
    9·1 answer
  • You have two employees who report directly to you. One is making $36,000/year and the second is making $24,000/year. You feel th
    11·1 answer
  • Trout Company is considering introducing a new line of pagers targeting the preteen population. Trout believes that if the pager
    14·2 answers
  • Suppose that when the price of gasoline is $3.50 per gallon, the total amount of gasoline purchased in the United States is 6 mi
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!