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
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.

You might be interested in
A company emphasizes ________ in its strategic planning where it develops four alternative futures based on two key variables: t
Sauron [17]

A company emphasizes scenario analysis in its strategic planning where it develops four alternative futures based on two key variables: the cost of energy and the extent of growth opportunities in emerging markets.

The technique of evaluating a portfolio's expected value following a specific change in the values of key elements is known as scenario analysis. This method, which frequently makes use of computer simulations, can be used to test both likely scenarios and unlikely worst-case events.

The terms scenario planning, scenario thinking, scenario analysis, scenario prediction, and the scenario approach all refer to a flexible long-term planning technique used by some businesses. It is largely an adaptation and generalization of traditional military intelligence techniques.

Learn more about  scenario analysis here

brainly.com/question/10701536

#SPJ4

6 0
2 years ago
The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outsi
Romashka [77]

Answer:

True

Explanation:

Enterprise system, which is also referred to Enterprise resource planning (ERP)  refers to a business software which is implemented centrally so as to help coordinate and exchange data smoothly between departments and people.

Such a system makes it convenient for the businesses to share information within as well as with outside parties of an organization and helps integrate information between different departments.

Initially, the ERP software was primarily used by businesses for internal business processes but gradually it has been applied for suppliers, customers and outside business functions.

Effective application of such a system ensures competitive advantage to an enterprise.

6 0
3 years ago
A financial statement is a summary of all the financial transactions that have occurred over a particular period. Also financial
just olya [345]

Answer:

True

Explanation:

This is true

3 0
3 years ago
Millions of software programs have been created and have helped to improve the economy. This is an
I am Lyosha [343]

Answer:

new technology.

Explanation:

An information system or technology can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.

Generally, it is an integral part of human life because individuals, organizations, and institutions rely on information systems and technology in order to perform their duties, functions or tasks and to manage their operations effectively. For example, all organizations make use of information systems for supply chain management, process financial accounts, manage their workforce, and as a marketing channels to reach their customers or potential customers.

Additionally, an information system or technology comprises of five (5) main components;

1. Hardware.

2. Software.

3. Database.

4. Human resources.

5. Telecommunications.

Overtime, millions of software programs have been created and have helped to improve the economy. This is an example of new technology.

Basically, these new technologies have helped to simplify the process of producing goods and services effectively and efficiently to meet the unending needs and requirements of the consumers.

3 0
3 years ago
Juno Corporation's stockholders' equity section at December 31, 2019 appears below: Stockholder's equity Paid-in capital Common
wlad13 [49]

Answer:

Explanation:

Date         Particulars                                   Amount (Dr)      Amount (Cr)

6/30/17   Stock dividends

              (60,000 × 20% × 15)                       180000

              Common stock dividend

              distributable                                                             120000

             Paid-in Capital in Excess of Par

              common stock                                                            60000

7/15/17    No entry

7/31/17    Common stock dividend distributable    120000

              Common stock                                                            120000

12/1/17     No entry

12/15/17  No entry

Particulars    

1. Common stock   = (72000 × 2 × 5)                                    $720,000                

2. Number of shares outstanding (60000+12000)×2            144000

3. Par value per share (10/2)                                                  $5

4. Paid-in capital in excess of par  (150000+60000)           $210000

5. Retained earnings   (150000+190000-180000)               $160000

6. Total stockholders' equity                                                   $1090000

4 0
3 years ago
Other questions:
  • Encouraging users to click a like button is an example of which step in the social marketing process? fan acquisition brand stre
    8·1 answer
  • If you get a personal loan, and the bank asks for something to guarantee the loan, the bank is asking for what?
    5·2 answers
  • MaryAnne is always late to meetings and she knows she needs to be better about being on time because it is expected by almost ev
    14·1 answer
  • Which option allows the business owner the most creativity in making decisions about the business?
    10·1 answer
  • Olivia recently opened a salon. she strategically priced her salon's services slightly lower than that of other popular salons i
    11·1 answer
  • pam invested $4200 in a savings account with a yearly interest rate of 4% for 7 years. How much simple interest did she earn
    14·2 answers
  • New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $70,300 in cash. The book values and market
    11·1 answer
  • Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the f
    10·1 answer
  • Definition of a stakeholder
    8·1 answer
  • If Emily makes a one-time deposit of $400 at 12% compounded quarterly for 8 years, what is the value of the investment in 8 year
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!