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Stolb23 [73]
3 years ago
5

The Nearside Co. just paid a dividend of $1.20 per share on its stock. The dividends are expected to grow at a constant rate of

4 percent per year, indefinitely. Investors require a return of 10 percent on the stock. a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price be in three years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the price be in 10 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
masha68 [24]3 years ago
6 0

Answer and Explanation:

The computation is shown below:

a. Current price is

= D1 ÷ (Required return - Growth rate)

= ($1.20 × 1.04 ÷ (0.1 - 0.04)

= $20.8

b. Now the price in three year is

P3 = Current price × (1 + Growth Rate)^3

= $20.8 × (1.04)^3

= $23.40

c. For price in 10 year it is

P10 = Current price × (1 + Growth Rate)^10

= $20.80 × (1.04)^10

= $30.79

We simply applied the above formula

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<h3>What is general partnership?</h3>

A general partnership, the most basic type of partnership under common law, is an organization of people or an unincorporated company that has the following major characteristics: Agreement, proof of existence, and estoppel must all be used to create it.

Two conditions must be met in order to form a general partnership: The company must have at least two owners. All partners must agree to accept unlimited personal responsibility for any debts or legal liabilities incurred by the partnership.

Unless otherwise stated in the agreement, all partners in a general partnership have equal standing and the authority to participate in the management of the business. When a decision must be made, each partner is usually given one equal vote.

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1 year ago
Which of the following is a benefit of outsourcing? a. It makes employees self-reliant. b. It helps a firm meet its expansion ne
Fofino [41]

Answer:

C. It eliminates jobs that tend to be repetitious.

Explanation:

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It should be noted that one of the benefit of outsourcing is that It eliminates jobs that tend to be repetitious.

4 0
2 years ago
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nasty-shy [4]

Answer:

a)     GDP measures the market value of final goods and services produced within a country.

Explanation:

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Economist uses GDP as a scorecard of a country's economic status. They use it to determine the growth rate of an economy and its size.

Investors and business people will use GDP in the decision-making process. They will want to invest in industries or countries that are growing. A steady rise in GDP signifies that the economy is doing well and growing. A decrease in GDP will indicate a recession.

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Answer:

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8 0
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Answer and Explanation:

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Also the given statement is false as it represents the monopoly market not the perfect competition market

5 0
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