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Veseljchak [2.6K]
2 years ago
7

A stock is expected to pay $0.70 per share every year indefinitely. If the current price of the stock is $18.90, and the equity

cost of capital for the company that released the shares is 7.9%, what price would an investor be expected to pay per share five years into the future
Business
1 answer:
PolarNik [594]2 years ago
5 0

Answer:

$32.72

Explanation:

In this question, we are asked to calculate the price an investor would be expected to pay per share in the next five years.

We proceed as follows to calculate this.

Dividend = $0.70

Share price = $18.90

Hence = Dividend / Share price

= 0.70 / 18.90

= 0.037037

Cost of Equity = 7.9%

Expected growth = 0.037037 + 0.079

= 0.116037

Add one to it = 1 + 0.116037

= 1.116037

Share price after 5 year = $18.90 * (1.116037)^5 = $32.7231

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The number of new domestic wind turbine generators installed each year in a particular country has been forecast to increase at
kirza4 [7]

Answer:

2030

Explanation:

The computation of the total number of new generators including this year is shown below

Given that

(A) = 100

Common Ratio (r) = 1.15

n = 10

Now

Sum of 10 terms Sn is

= A × (r n - 1) ÷ (r - 1)

= 100 × (1.1510 - 1) ÷ (1.15 - 1)

= 100 × 3.0456 ÷ 0.15

= 2030

We simply applied the above formula so that the total number of new generators could come

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3 years ago
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Sindrei [870]

Answer:

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2 years ago
If 3,000 is invested at 7% for 6 months,how much simple interest is earned
Shtirlitz [24]
I believe the answer would be $126,000 because 3,000*7*6 equals 126,000. I may have done it wrong since I haven't done this in a while.
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