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Gemiola [76]
3 years ago
7

Dee’s made two announcements concerning its common stock today. First, the company announced that the next annual dividend will

be $1.94 a share. Secondly, all dividends after that will decrease by 1.25 percent annually. What is the value of this stock at a discount rate of 14.5 percent?
Business
1 answer:
KiRa [710]3 years ago
4 0

Answer:

The answer is: $12.32

Explanation:

Dee's stock can be considered a perpetuity with a negative growth rate. So we can use the following formula to calculate the value of Dee's stock:

price of Dee's stock = dividend / (discount rate - growth rate)

where:

  • dividend = $1.94
  • discount rate = 0.145
  • growth rate = -0.0125

price of Dee's stock = $1.94 / [0.145 - (-0.0125)] = $1.94 / (0.145 + 0.0125) =

$1.94 / 0.1575 = $12.32

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Lack communication, ignorance, bad behavior
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The price of good B has a pattern such that P = $20 on Monday through Thursday of every week, and P = $25 on Fridays. If specula
Andru [333]

Answer:

The correct answer is D. increase; decrease.

Explanation:

Speculation consists of the purchase (or sale) of goods with a view to their subsequent resale (repurchase), when the reason for such action is the expectation of a change in the prices affected with respect to the dominant price and not the gain derived from its use, or of some kind of transformation carried out on these or of the transfer between different markets.

A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the price fluctuation based on the theory of arbitration. In an extensive sense, every form of investment that a medium entails is speculative; However, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.

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3 0
3 years ago
_____ are expense items that do not become part of a final product. select one:
yarga [219]
Business services are expense items that do not become part of a final product.

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4 0
3 years ago
F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the
erica [24]

Answer:

E) A sharp increase in its forecasted sales.

Explanation:

Haven developed a forecasting model to estimate its AFN for the upcoming year, F. Marston, Inc. would have an increase in the additional funds needed (AFN) due to the sharp increase in its forecasted sales.

An increase in sales translates to an increased cash flow and profits.

3 0
3 years ago
On April 1, 2021, the Electronic Superstore borrows $23 million of which $7 million is due in 2022. Show how the company would r
Serggg [28]

Answer:

Long term liabilities is $23,000,000

Explanation:

                 Electronic Superstore

        Balance Sheet (Not Full) at December 31, 2021

Details                                                Amount ($)

Current liabilities                                     NA

Long-term liabilities                         <u>  23,000,000 </u>    

Total liabilities                                   <u> 23,000,000 </u>                  

Note that the $7 million will due in 2022  not in 2021. Therefore, this does not effect on the 2021 balance sheet entries.      

4 0
3 years ago
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