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Veseljchak [2.6K]
3 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]3 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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Social Learning Theory holds that: A. Employees learn what not to do by observing their leaders' behavior and its consequences B
alexgriva [62]

Answer:

B. Employees learn what to do by observing their leaders' behavior and its consequences

Explanation:

Social learning theory: In psychology, "social learning theory" is considered as one of the famous learning theory which was proposed by a psychologist named Albert Bandura. Social learning theory states that learning generally occurs through observing the other person. It encompasses that a new behavior is being learned through imitation process.

The main idea associated with social learning theory is that an individual tends to do things what he or she sees.

8 0
3 years ago
Preferred stock of leaping dolphin inc. pays 8% on the $100 par value. what is the value of the stock if the appropriate discoun
ra1l [238]

Calculate the value of the stock:

<span>The dividend on preferred stock is received constantly for perpetuity. So, the value of preferred stock can be calculated by dividing the dividend with the required rate of return. If the dividend rate is 8% on par value of $ 100 and required rate is 6% the value of preferred stock will be P = (100x0.08)/0.06 = 8/0/06 = 133.3333333</span>

7 0
3 years ago
Htc started as an original equipment manufacturing firm (oem) for brand-name mobile device companies. later, it started offering
choli [55]

Answer:

Forward vertical integration

Explanation:

Forward vertical integration is a strategy that allows companies to get more control of their business value chain and be more competitive by including the distribution of the products to be able to reach the customers directly. According to this, the answer is that the strategic move of HTC is known as forward vertical integration as HTC acquired one & co. to be able to offer a line of smartphones which was a move to distribute the cellphones they manufactured directly to the customers.

6 0
3 years ago
Alma is interested in receiving income to help save money for her grandson’s college education. She is considering investing in
sergij07 [2.7K]

Answer:

D. the company does not have a legal obligation to pay dividends when promised.

Explanation:

Dividends are share of income distributed by the company to shareholders when the company performs good, and earns profit.

But since it is a distribution of income and not a mandatory payment, there might be chances that company do not pay dividends, and might retain the income earned for future growth prospects.

Thus, in order to earn money fast although the company promises to make dividend payments, but it shall be taken care, that the company will necessarily pay dividends.

6 0
4 years ago
Wynona Corp’s production cost data for the current period is: Beginning work in process inventory: 20,000 units Units started in
Sliva [168]

Answer:

30,200 units

Explanation:

We have at the begining 20,000 units in process and during the period studied an additional bulk of 15,000 units starts it production, so:

During the studied period, (20,000+15,000) 35,000 are produced, but as at the end of the period we have 6,000 unit as work in progress, only 35,000-6,000= 29,000 units are finished.

So, we have 29,000 finished units+ 6,000 work in progress units.

The work in process units are equivalent to: 6,000 units*0,2= 1,200 equivalent units.

Total equivalent units= 29,000+ 1,200 = 30,200 Units

7 0
4 years ago
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