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alexandr1967 [171]
3 years ago
13

Maxwell Communications paid a dividend of $1.35 last year. Over the next 12 months, the dividend is expected to grow at 11 perce

nt, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required rate of return (Ke) is 24 percent. Compute the price of the stock (P0). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
PilotLPTM [1.2K]3 years ago
4 0

Answer:

Current dividend paid (Do) = $1.35

Growth rate (g) = 11% = 0.11

Cost of equity (ke) = 24% = 0.24

Po = Do<u>(1 + g)</u>    

           Ke - g

Po = $1.35<u>(1 + 0.11)</u>

                 0.24 - 0.11

Po = <u>$1.4985</u>

            0.13

Po = $11.53                                                                                                                                                                                                                

Explanation:

The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.

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Answer:

They own and control the functions of the organization.

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A cooperative is owned by the total of their affiliates who are the direct users of it. This means that if you want to use the cooperative you must be an owner/affiliate.

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3 years ago
The original cost of a LIFO inventory item is below both replacement cost and net realizable value. The net realizable value les
serg [7]

Answer:

D. Original cost.

Explanation:

As we know that the inventory should be valued at lower of cost or market value. Also , the market value is the middle amount among the replacement cost, net realizable value, net realizable value - normal profit margin

It can be the replacement cost or net realizable value. We don't have an idea which one is the middle amount

Also, if the original cost is less than the market cost so we assume that the inventory should be valued at original cost

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3 years ago
If the marginal propensity to consume is 0.8, full-employment output is $14 trillion, and current output is $13.5 trillion, then
CaHeK987 [17]

Answer:

c. Increase by $0.1 trillion

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Investment spending Multiplier is a concept in economics that measure how a given change in investment increases output. So if current output of $13.5 trillion must increase to $14 trillion, we employ the multiplier formula to derive what amount of investment spending is needed to get $o.5trillion increase in output.

(change in output)/ (change in investment) = 1/(1-mpc)

Note that mpc means marginal propensity to consume.

Let change in investment = X

change in output = 14 - 13.5 = $0.5trillion

mpc = 0.8

(0.5)/X = 1(1-0,8)

0.5/X = 1/0.2

cross multiply

X = 0.1

Thus the needed change in investment is an increase of $0.1 trillion. In other words, if investment increases by $0.1 trillion, current output will increase from $13.5 trillion to $14 trillion.

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Naddika [18.5K]

Answer:

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Acquisition costs comprise the commission paid, legal fees, cost of improving the assets and all necessary cost paid to get the assets running.

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You start to receive numerous bills for items that you never purchased. What should you do if you feel that you are victim of id
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You call up the bank and tell them it was not you
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