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aleksandrvk [35]
3 years ago
8

Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual di

vidend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock
Business
1 answer:
Ludmilka [50]3 years ago
8 0

Answer:

$28.57

Explanation:

Current price = D1/(Required return-Growth rate)

D1 (Next dividend) = $2

Required return = 10% = 0.1

Growth rate = 3% = 0.03

Current price = $2/(0.1-0.03)

Current price = $2 / 0.07

Current price = $28.57143

Current price = $28.57

Hence, i will be willing to pay $28.57 for a share of Merck stock.

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Answer:

Overhead absorption rate

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Explanation:

Since the overhead absorbed is $4,400, there is need to divide the overhead absorbed by actual direct labour cost multiplied by 100. This gives the overhead application rate.

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Why does my dad stick his weener up my dog
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A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thou
Oksanka [162]

Answer:

2. Limited supply would increase the price

Explanation:

In the given case the vendor sells in advance four thousand units for $300. While the installed capacity of the factory being to produce 1000 smartphones every month.

Expected sales being 500 units per month.

During the first few months, since the seller has already successfully sold 4000 smartphone units, high demand for the smartphones is evident.

Since the supply is limited to 1000 units only in a month and the quantity demanded being more as is evident by 4000 units being pre sold, during the initial phase, this would create a high demand.

And since the supply is limited, the seller will have to increase the price as the demand is lot more.  

7 0
3 years ago
the economy is currently in long-run equilibrium. if the central bank increases the money supply, in the long run the price leve
Scorpion4ik [409]

The economy is currently in long-run equilibrium. If the central bank increases the money supply, in the long run the price level will raises.

<h3>What is long-run equilibrium?</h3>

The term “long-run equilibrium” is used in economics to represent a theoretical idea in which all markets are in equilibrium and all prices and quantities have fully adjusted to achieve equilibrium.

The long-run differs from the short-run, which has some limitations and markets that are not entirely balanced.

Currently, the economy is in long-run balance. If the central bank expands the money supply, the price level will rise in the long run.

Therefore, in the long run, the price level will raise as the central bank increases the money supply.

To learn more about the money supply, refer to:

brainly.com/question/14041873

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4 0
2 years ago
For the budget period ending December 31 of the current year, Aaron Corporation estimates its ending balances for cash as $4,000
jek_recluse [69]

Answer:

The amount of total current assets that will be reported on the budgeted balance sheet is $40,000.

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Total current assets

= Cash + Accounts receivable + Finished goods inventory + Raw materials inventory

= $4,000 + $16,000 + $12,000 + $8,000

= $40,000

Therefore, The amount of total current assets that will be reported on the budgeted balance sheet is $40,000.

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3 years ago
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