1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
miss Akunina [59]
2 years ago
10

Firm b pays a constant $9.50 dividend on its stock and will maintain this dividend for the next 11 years and will then cease pay

ing dividends forever. if the required return on this stock is 11 percent, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
Business
1 answer:
sdas [7]2 years ago
6 0

Firm b pays a constant dividend (D0) = $9.50

Number of years (N) = 11 years

Rate of return on the stock ( R ) = 11%

The share price of the stock (P0) = Present value of dividend for 11 years at 11%

P0 = D0*PVIFA (k%,n)

P0 = $9.50*PVIFA(11%,11)

P0 = $9.50*6.20625

P0 = $58.96

Hence, the price of the stock is $58.96

You might be interested in
As with all managerial work, arts and
lilavasa [31]
C. Especially art is what they look for
6 0
3 years ago
In February 2017 the risk-free rate was 4.97 percent, the market risk premium was 7 percent, and the beta for Twitter stock was
Gnesinka [82]

Answer:

14.77%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.97% + 1.40 × 7%

= 4.97% + 9.8%

= 14.77%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium and the same is shown in the answer

5 0
3 years ago
Which one of the following statements regarding partnership taxation is incorrect?
Arisa [49]

Answer:

A partnership is a taxable entity for Federal income tax purposes.

5 0
2 years ago
A scale used to weigh produce at a market has markings every 0.1 kg. which measurement for the mass of a dozen apples is correct
AleksAgata [21]

A scale used to weigh produce at a market has markings every<u> 0.1 kg</u>

Measurement for the mass of a dozen apples is correctly reported for this scale<u> </u><u>1.87 </u><u>kg</u>

<u />

<h3>What is produced in the market?</h3>

Farm is a generalized term for many farm-produced crops, including fruits and vegetables (grains, oats, etc.

<h3>Why is it named produce?</h3>

Produce here refers to “fresh fruits and vegetables”. It's the noun understanding of that word, not the verb, and so its stress falls on the first syllable. Therefore the vegetables aisle is the place where such items are found.

To learn more about Measurement, refer

brainly.com/question/777464

#SPJ4

6 0
1 year ago
Mona sets up a business consulting firm in which the employees are motivated because they find their work interesting and creati
gayaneshka [121]

Answer:

Letter C is correct. <em>A firm that relies on high output controls to tap into intrinsic motivation.</em>

Explanation:

By carefully selecting the employees of his consulting firm, Mona ensures that each employee's expected competency and skills profile has been met through rigorous selection, which enhances the chances that operational strategies will be more widely deployed and accepted effective.

By setting the expected results, but letting the employees themselves define how to achieve them, it generates an intrinsic motivation, one that generates internal feelings in the individual to want to achieve personal goals, objectives and projects that motivate and stimulate them.

4 0
3 years ago
Other questions:
  • The Rhaegel Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.3 percent and the expected return on the ma
    15·1 answer
  • Land in the Marcellus Shale natural gas play is currently leasing for $10,000 per acre. 100 acres are needed in order to drill f
    9·1 answer
  • In a population of 100 individuals, we have 25 people that are homozygous AA, 50 people that are heterozygous Aa, and 25 people
    12·1 answer
  • A human resource employee who works in many different areas likely has a ______ job. a. generalist b. knowledge c. technical d.
    15·1 answer
  • Free rider problems are everywhere. For example, some restaurants let each food server keep his or her own tips. Other restauran
    14·1 answer
  • A manufactured product has the following information for June. Standard Actual Direct materials (7 lbs. @ $9 per lb.) 60,000 lbs
    15·1 answer
  • A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best descr
    13·1 answer
  • An _________________ is calculated by subtracting the firm's costs from its total revenues, _______________________. Group of an
    13·1 answer
  • Which of the following are the limitations of conducting extra military instruction (EMI)? Select all that apply.
    10·1 answer
  • VideoPlus, Inc. manufactures two types of DVD players, a deluxe model and a standard model. The deluxe model is a multi-format p
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!