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mrs_skeptik [129]
4 years ago
13

JRN Enterprises just announced that it plans to cut its dividend from $ 3.00$3.00 to $ 1.10$1.10 per share and use the extra fun

ds to expand its operations. Prior to this​ announcement, JRN's dividends were expected to grow at 55​% per year and​ JRN's stock was trading at $ 24.00$24.00 per share. With the new​ expansion, JRN's dividends are expected to grow at 1010​% per year indefinitely. Assuming that​ JRN's risk is unchanged by the​ expansion, the value of a share of JRN after the announcement is closest​ to
Business
1 answer:
kolbaska11 [484]4 years ago
4 0

Answer:

The value of a share of JRN after the announcement is closest​ to $2

Explanation:

  • P = D1/(r-g)

24= 3 /(r-0.55)

r= 0,675

  • now when Dividend is changed

Price = 1.1/(0,675 -0.1) = $ 1,91, approximately $2

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A price floor is Group of answer choices often imposed when sellers of a good are successful in their attempts to convince the g
Natasha2012 [34]

Answer: a legal minimum on the price at which a good can be sold.

Explanation:

A price floor is the lowest price the government approves for a product sales, in other words the product cannot be sold below the price floor. The price floor is set to protect the sellers from running at a loss in case the market price of a product is less than the expenses made in producing/buying that product.

4 0
3 years ago
The only cause of the great depression was the stock market crash. <br> a. True <br> b. False
jeka94
False other things also happened
8 0
3 years ago
One day, Barry the Barber, Inc., collects $500 for haircuts. Over this day, his equipment depreciates in value by $80. Of the re
zheka24 [161]

Answer:

Gross Domestic Product

= $500

<em>GDP is the final value of goods and services. The haircut is valued at $500 so is GDP. </em>

Net National Product:

= GDP - Depreciation

= 500 - 80

= $420

National Income

= $420

<em>This is the income that a resident of the country earns and $420 is what Barry earned in net income.</em>

Personal Income

= National income - Retained earnings

= 420 - 120 - 50

= $250

Disposable Personal Income (Dollars)

= Personal income - income taxes

= 250 - 90

= $160

4 0
3 years ago
If a company issues 2,500 shares of common stock at a market price of $48 per share, which of the following is the correct balan
Yuri [45]

Answer:

A. Increase cash by $120,000 and increase contributed capital by $120,000

Explanation:

when a company issues common stock then the company's cash balance and shareholders fund increases.

in this case, the company issued 2,500 shares of common stock at price $48;

The effect increase cash = 2,500*48

                                         = $120,000

The effect increase contributed capital = 2,500*48

                                                                  = $120,000

Therefore, The the correct balance sheet effect is, increase cash by $120,000 and increase contributed capital by $120,000.

5 0
4 years ago
Which of the following is an example of a negative easement appurtenant? a. a common drive easement where owners of adjoining lo
astra-53 [7]

Answer:

B. a scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view

Explanation:

A negative easement gives an easement holder the right to prohibit the owner of a servient estate from using his own property in a specified manner.

6 0
3 years ago
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