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wel
3 years ago
9

You plan on purchasing the stock of Red Cigars Inc. and you expect it to pay a dividend of​ $3.15 in 1​ year, $3.55 in 2​ years,

and​ $4.05 in 3 years. You expect to sell the stock for​ $95.00 in 3 years. If your required return for purchasing the stock is 11​ percent, how much would you pay for the stock​ today?
Business
1 answer:
Musya8 [376]3 years ago
3 0

Answer:

Price of stock = $78.143

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.  

So we will discount the steams of dividend using the required rate of 11.0% as follows

Price of stock =3.15 × 1.11^(-1)  +3.55× 1.11^(-2) +4.05 1.11^(3)  +95× 1.11^(-3)

=78.143

Price of stock = $78.143

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Answer:

To no the prices of goods and service and to buy stuff at low prices.

Explanation:

A purely competitive market is a situation where multiplier sellers have homogeneous products. The availability of the information is very important in a purely competitive market in order to decide how many sellers are selling the same product and from where an individual can buy products at low prices. Availability of information means, no seller can earn abnormal profits.

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Normally, mortgage brokers have nothing to lose by encouraging you to get a bigger loan than you may be able to afford.
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If the Federal Reserve buys $8,500 worth of securities from non-bank public, and the non-bank public then keeps the payment from
vova2212 [387]

Answer:

c: C increases by $8,500 and the MB increases by $8,500

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If the Federal Reserve buys $8,500 in securities from non-bank public and then payment is kept from the bank in form of cash, theC increases by $8,500 and the MB increases by $8,500

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3 years ago
What are the advantage and dis advantage of advertising for a hotel?​
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Answer:

heres are the pro/advantages and cons/disadvantages of advertising.

Explanation:

Pros                                                                             Cons

Expands the market                                     Encourages monopolistic control

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3 years ago
On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty:
Mama L [17]

Answer:

1.

a. May 31

Dr Accounts Receivable 19,750

Cr Service Revenue 19,750

b. May 31

Dr Supplies Expense 8,150

Cr Supplies 8,150

c. May 31 Wages Expenses 2,700

Wages Payable 2,700

d. May 31

Dr Unearned Rent 3,000

Cr Rent Revenue 3,000

e. May 31

Dr Depreciation Expense 3,200

C Accumulated Depreciation-Office Equipment 3,200

2. ADJUSTING ENTRIES are entries that has already be planned for ahead or in advance while CORRECTING ENTRIES on the other hand are entries that comes up when necessary in order to correct errors.

Explanation:

1. Preparation of the adjusting entries required at May 31.

a. May 31

Dr Accounts Receivable 19,750

Cr Service Revenue 19,750

(To record unbilled fees)

b. May 31

Dr Supplies Expense 8,150

Cr Supplies 8,150

(12,300-4,150)

(To record supplies expense)

c. May 31 Wages Expenses 2,700

Wages Payable 2,700

(To record wages expense)

d. May 31

Dr Unearned Rent 3,000

Cr Rent Revenue 3,000

(9000/3 months)

(To record rent revenue)

e. May 31

Dr Depreciation Expense 3,200

C Accumulated Depreciation-Office Equipment 3,200

(To record depreciation expense)

2. ADJUSTING ENTRIES are entries that has already be planned for ahead or in advance while CORRECTING ENTRIES on the other hand are entries that comes up when necessary in order to correct errors.

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