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ElenaW [278]
2 years ago
10

BioScience Inc. will pay a common stock dividend of $4.60 at the end of the year (D1). The required return on common stock (Ke)

is 17 percent. The firm has a constant growth rate (g) of 7 percent. Compute the current price of the stock (P0)
Current Price______________
Business
1 answer:
Angelina_Jolie [31]2 years ago
8 0

Answer:

The current price of the stock is $46

Explanation:

We will use the gordon growth model to calculate the price of the stock. The formula is

Price= D1/R-G

D1 is the year end dividend

R is the required return on the stock and G is the constant growth rate.

We will plug in the numbers in the formula in order to find the price.

4.60/(0.17-0.07)=46

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Answer:

Qualified business income deduction= $20,000

Explanation:

Section 199A of the Internal Revenue Code gives numerous citizens a conclusion to qualified business salary from a certified exchange or business worked straightforwardly or through a go through substance. People, trusts and bequests with qualified business salary, qualified REIT profits or qualified PTP pay may meet all requirements for the finding. QBI is the net measure of qualified things of salary, addition, derivation and shortfall from any certified exchange or business. The reasoning will be % of QBI.

Tammy shall get deduction of 20% of $ 100,000 = $ 20,000

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An alliance becomes "strategic" as opposed to just a convenient business arrangement when it serves all of the following strateg
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Answer:

E) contracts out certain value chain activities that are normally performed in-house to outside vendors.

Explanation:

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3 years ago
The number of customers who enter a bank is thought to be Poisson distributed with a mean equal to 10 per hour. What are the cha
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Answer:

The probability that 2 or 3 customers will arrive in a 15-minute period is 0.4703

Explanation:

Firstly, we have to determine the segment unit, since the mean is 10 per hour, the segment unit is 1 hour.

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since the period is 15 minutes = 0.25 hour, t= 0.25 hour / 1 hour. Therefore mt= 2*10 = 2.5

The poisson distribution formula P(x) = \frac{(mt)^{x}e^{-mt}  }{x!}

Therefore the probability that 2 or 3 customers will arrive in a 15-minute period

P(x=2) or P(x=3) = P(x=2) + P(x=3) = \frac{(2.5)^{2}e^{-2.5}  }{2!}+\frac{(2.5)^{3}e^{-2.5}  }{3!} = 0.2565 + 0.2138 = 0.4703

Therefore P(x=2) or P(x=3) = 0.4703

The probability that 2 or 3 customers will arrive in a 15-minute period is 0.4703

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2 years ago
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