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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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Kamila [148]

Answer:

The correct answer is D. Choices that are the best for more than one person are said to be in the social interest.

Explanation:

The social interest is a concept sufficiently clarified in Company Law. The Capital Companies Law refers to it in terms of challenging social agreements: if an agreement is not in accordance with the corporate interest, it can be challenged. It is only negatively contested, that is, if the plaintiff can argue that the agreement is contrary to the social interest, so that it is not a validity requirement that the agreement be in accordance with the social interest. Likewise, if the administrators act against the social interest when they exercise their discretionary powers, they incur responsibility for violation of their duty of loyalty.

3 0
3 years ago
"A customer owns 1,000 shares of XYZZ stock, purchased at $40 per share. The stock is now at $45, and the customer has become ex
Alika [10]

Answer:

Sell 1,000 shares of XXYZZ and buy 10 XYZZ put contracts

Explanation:

In the stock markets a bullish trend is when the price of the stock increases, while a bearish market is when the stock price decreases.

In this scenario the customer owns 1,000 shares of stock XYZZ stock that have been in a bullish trend rising from $40 to $45.

Usually a bullish trend is followed by a bearish trend.

If the customer is sure there will be a bear on the stock them he should sell or make a put trade.

On sale of the 1,000 shares the customer will make $5 per share, and enter a put option since the market is going bearish.

7 0
3 years ago
When everyone correctly anticipates that the Fed will buy government securities, then they know that prices will increase. Which
Veseljchak [2.6K]

Answer:

C. Producers will prevent the price level from increasing and hurting their sales.

Explanation:

When the FED buys securities from the public, the money supply increases and this raises the general price levels.

When general price level increases, workers would demand higher wages and the prices of goods and services would rise.

I hope my answer helps you

6 0
3 years ago
Which of the following statements are true about this natural monopoly? Check all that apply. The cable company is experiencing
solong [7]

Answer:

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Explanation:

It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.

Without government regulation, natural monopolies can earn positive profit in the short run.  It is a true statement.

3 0
3 years ago
Read 2 more answers
A company has developed a new engine whose average lifetime is unknown. In order to estimate this average, 100 engines are rando
weqwewe [10]

Answer:

(B) Statistic

Explanation:

A statistic is defined as a metric derived from (or that describes) a sample. As such, given a certain population (in the case of the question, <em>the population is the total number of new engines developed by the company</em>), a sample can be selected from the population (<em>the sample in the question is the 100 engines that are randomly selected</em>).

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3 years ago
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