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KatRina [158]
3 years ago
8

Daniel Custom​ Cycles' common stock currently pays no dividends. The company plans to begin paying dividends beginning 3 years f

rom today. The first dividend will be​ $3.00 and dividends will grow at 5 percent per year thereafter. Given a required return of 15​ percent, what would you pay for the stock​ today?
Business
1 answer:
svetoff [14.1K]3 years ago
7 0

Answer:

stoke price in 2 year is $30

current stoke price is $22.68

Explanation:

Given data

dividend in 3 year = $3.00

grow rate = 5% = 0.05

return = 15% = 0.15

to find out

pay for the stock​ today

solution

we know there is no dividends for first 3 year after they need to pay

so first we calculate stoke price in 2 year from this formula i.e.

stoke price = dividend in 3 year /  ( return rate - grow rate )

put these value

stoke price = 3 /  ( 0.15 -  0.05 )

stoke price in 2 year is $30

now we calculate current price for stoke by discounting stoke in 2 year by this formula to 2 year

current stoke price = stoke price in 2 year  / (1 + return rate )²

current stoke price = 30  / (1 +  0.15 )²

current stoke price is $22.68

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Answer:

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2 years ago
​Billy's Hamburger Barn has a single​ drive-up window.​ Currently, there is one attendant at the window who takes the order ​(20
Umnica [9.8K]

Answer:

The map of the current process is found in the attached

The minimum cycle time is 1 min 40 seconds

The longest cycle time is 2 min 35 seconds

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The new longest cycle time is  2 mins

The potential problem that could surface from splitting the process is that once the customer has finished paying the customer has to wait for about 30 to 55 seconds before the second attendant finishes with packaging,hence ,a queue would likely be formed awaiting the second attendant.

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Explanation:

Minimum cycle time=20+55+25=100 seconds=1 minute 40 seconds

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Download xlsx
6 0
3 years ago
Emily works in an orphanage and strongly believes that what she does is important and adds real values to the lives of others. S
Allushta [10]

Answer: EMPATHY

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3 0
4 years ago
Read 2 more answers
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Answer:

d. there is a movement along the demand curve of that good or service.

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I hope my answer helps you

6 0
4 years ago
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