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poizon [28]
3 years ago
13

A stock is expected to pay the following dividends per share over the next four​ years, respectively: ​ $0.00, $2.30,​ 2.60, and

​ $2.90. If you expect to be able to sell the stock for​ $95.83 in four years and your required rate of return is​ 6%, what is the most that you should be willing to pay for a share of this stock​ today?
Business
1 answer:
Snowcat [4.5K]3 years ago
3 0

Answer:

present value of stoke combine equation is $82.43

Explanation:

Given data

no of period = 4

discount rate = 6% = 0.06

dividends = $0.00, $2.30,​ 2.60, and​ $2.90

to find out

current stoke price

solution

we know dividend is 0 for st year so present value for 1st year will be 0 .....1

now we calculate

present value 2nd year dividend is = 2.30 / (1+0.06)^2

present value 2nd year dividend is = $2.05   ............2

present value 3rd year dividend is = 2.60 / (1+0.06)^3

present value 3rd year dividend is = $2.18    ..............3

present value 4th year dividend is = 95.83 / (1+0.06)^4

present value 4th year dividend is = $75.91    ..............4

present value of stoke  combine equation 1 + 2 + 3 + 4

present value of stoke  combine equation = 2.05 + 2.18 + 2.30 + 75.91

present value of stoke combine equation is $82.43

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The Clifford Corporation has announced a rights offer to raise $10 million for a new journal, the Journal of Financial Excess. T
kkurt [141]

Answer and Explanation:

1. The maximum possible subscription price is $60

The maximum price is anything greater than $0

2.Number of new shares

$10,000,000/$50

=$200,000

Number of right shares

$1,000,000/$200,000

=$5

3. Excess right 58.33

(5*60+50)/(5+1)

Value of excess 1.67

($60-58.33)

4.Portfolio value before right offering

2,000×60

= 120,000

Portfolio value after right offering 120,000

(2000×58.33 +2000×1.67 )

8 0
3 years ago
The stated interest payment, in dollars, made on a bond each period is called the bond's?
kipiarov [429]

The stated interest payment, in dollars, made on a bond each period is called the bond's <u>Coupon.</u>

Payment is the act of giving or being paid money to someone. He tried to get paid for the amount owed to him. [ + of ] [Also + of] Synonyms: Claim, Payment, Relief, Display Synonyms for payment.

For TDS payments, the relevant payment type is defined by the department along with the relevant tax rate, section, payment code, and threshold. When creating a TDS payment type, you can press Ctrl+C and select the required payment type.

A payment method is how a customer pays for a product or service. Physical stores accept payment methods such as cash, gift cards, credit cards, prepaid cards, debit cards, and mobile payments.

Learn more about Payment here brainly.com/question/2151013

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4 0
1 year ago
Saturday afternoon you can either attend a street festival, work and earn $100, or study for your midterm exam. You flip a coin
Alik [6]

Answer:

The opportunity cost of the time spent studying includes: 2) the benefit that could have been received at the street festival

Explanation:

The cost of opportunity is the alternative that you sacrifice when you choose an option.  It represent the <u>benefits that you misses out</u> on when choosing one alternative over another.  

In this case,  the cost of opportunity is the  benefit that could have been received at the street festival,  because that is the option you leave behind.

Earning a high score on your midterm is the product of your decision

5 0
3 years ago
Budd, the purchasing agent for Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for har
Anon25 [30]

Answer:

D. Purchase orders

Explanation:

A purchase order is a document legally binding a buyer and a sellerr. It is the official confirmation of an order.

It entails the details of the items the buyer agrees to buy at a certain price, the delivery date and terms of payment for the buyer.

Purchase orders includes details such as purchase order number, the shipping date, billing address, shipping address, quantities and price.

Purchase orders are used when buyers want to purchase goods from a seller, and helps sellers to track payment. It is prepared by the buyers.

5 0
3 years ago
In 20X8, the following pledges were made: $35,000 in unrestricted contributions for use in 20X8; $20,000 in contributions restri
Triss [41]

Answer: $455,000

Explanation:

As the question states what will be the pledges receivable for 20x8 therefore, we will calculate all the pledges:

$35,000 + $20,000 + $400,000 = $455,000

Hence, the answer is $455,000 as we take into account all the pledges for the year 20x8.

8 0
3 years ago
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