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
Vadim26 [7]
3 years ago
13

Three Corners Markets paid an annual dividend of $1.42 a share last month. Today, the company announced that future dividends wi

ll be increasing by 1.3 percent annually. If you require a return of 14.6 percent, how much are you willing to pay to purchase one share of this stock today?
A) $10.68
B) $10.82
C) $9.68
D) $11.23
E) $11.57
Business
1 answer:
miv72 [106K]3 years ago
8 0

Answer:

$10.82

Explanation:

The computation of one share of stock is shown below:-

Expected dividend = Annual dividend × (1 + Growth rate)

= $1.42 × (1 + 1.3%)

= $1.42 × 1.013

= $1.44

Stock value = Expected dividend ÷ (Required return - Growth rate)

= $1.44 ÷ (14.6% - 1.3%)

= $1.44 ÷ 13.30%

=  $10.82

Therefore for computing the stock value we simply applied the above formula.

You might be interested in
Which terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?
AysviL [449]

Answer: Agency problem

Explanation:

Agency problem  is the issue rises when the agents fails to display appropriate interest of principles.This interest conflict usually occurs between the organisation's stakeholder and management.

In this situation,manger is the person who usually acts as the agent for providing best interest to the stakeholder to increase their wealth and benefit.But if failure in this case occurs , then conflict is experienced between both the parties.

4 0
2 years ago
Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run
Finger [1]

Answer:

Their business should be classified as a  Partnership.

Explanation:

The three major types of businesses are Sole Proprietorship, Partnership & Corporation. Sole Proprietorship has only one member and corporations have shared ownership and big in size. Partnerships are businesses in which a small number of people decide to pool in and start a business and are personally liable for any business debts. In this case the coffee shop opened by Franklin, John, Henry, and Harry would be classified as a Partnership.

Partnerships have a limited life and it will dissolve if any of Franklin, John, Henry, and Harry decide to leave the partnership unless stated otherwise in the charter of the partnership.

7 0
3 years ago
True or false an important measure of a countrys ecnomic health is its standard of living
blondinia [14]

I believe its true but you should probably get a 2nd opinion

4 0
3 years ago
What is an entitlement?
madam [21]

Hey! Let's do this together.

An entitlement is a provision made in accordance with a legal framework of a society.

That shows us that we can sum up our answer to "A".

Hopefully you understand, if not we can work on it some more :)

Thanks for using Brainly!

6 0
3 years ago
Read 2 more answers
According to the Ansoff Growth Matrix, the strategic option of A.) Market Penetration. B.) Product Development. C.) Diversificat
Stella [2.4K]
1/ C. Diversification is the riskiest strategic option.

2/ B. Conglomerate Diversification.
3 0
3 years ago
Read 2 more answers
Other questions:
  • An example of contractionary (taking money away from the general population) fiscal policy would be :
    14·1 answer
  • Costs of assets acquired in one period that will be recorded as expense in a future period are referred to as ______ and are ini
    13·1 answer
  • ABC Corporation raised capital through an offering of equity securities. Which component of the balance sheet has changed as a r
    14·1 answer
  • The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice c
    14·1 answer
  • Their installation fee is waived since I'm a current customer (now you know I made this up) but has a monthly fee of $60. Then I
    15·1 answer
  • At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note that states an annual interest
    6·1 answer
  • A company recorded 2 days of accrued salaries of $1,500 for its employees on January 31. On February 9, it paid its employees $7
    9·1 answer
  • Sales Tax - You go to the store and purchase a shirt for $21.18, how much will you pay
    11·1 answer
  • Detailed information about the financial statement elements is maintained in records commonly called?
    8·1 answer
  • as firms progress through the stages of becoming more internationalised and increase their international activities, their ihrm
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!