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denpristay [2]
3 years ago
8

You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid

ends to grow at a rate of 4% a year in perpetuity. If you require a return of 16% on your investment, how much should you be prepared to pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
yuradex [85]3 years ago
8 0

Answer:

$16.67

Explanation:

Data provided in the question;

Dividend to be paid next year, D1 = $2

Expected growth rate of dividend, g = 4% = 0.04

Required rate of return on the investment = 16% = 0.16

Now,

Price to be paid for the stock = \frac{D1}{\textup{(r-g)}}

or

Price to be paid for the stock = \frac{\$2}{\textup{(0.16-0.04)}}

or

Price to be paid for the stock = $16.67

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Answer:

$0

Explanation:

A client can only sue a stockbroker, a financial advisor, etc., only if they made them loss money through fraud or negligence. But in this case, May (stockbroker) apparently made a mistake of value, she did nothing illegal. She might be a terrible broker, but that doesn't make her a criminal. She also didn't breach any fiduciary duty, since investing always carries a risk. If Nora doesn't like to assume risks, then she should purchase government bonds.

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3 years ago
Help please!!!! will mark brainlest!!
alina1380 [7]
Answer:

For centuries the guideline for business transactions was the Latin term “caveat emptor” (let the buyer beware). This principle suggests that the seller is not responsible for the buyer’s welfare. In other words such principle gives the buyer the sole responsibility for checking the quality and suitability of the goods that he is buying from the seller before making a final purchase.
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2 years ago
Fixed overhead​ costs: A. never have any unused capacity B. should be unitized for planning purposes C. are unaffected by the de
d1i1m1o1n [39]

Answer:

C. are unaffected by the degree of operating efficiency in a given budget period.

Explanation:

Fixed over head costs or indirect costs are cost that do not vary with the level of out put. They are essential cost required to manage a business.

These costs are the same months by Months and are needed for the smooth running of the business. They are also unaffected by the degree of operating efficiency in a given budget period.

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4 0
3 years ago
On January 1, 2021, Blake Corporation issued 1,000 of its 9%, $1,000 callable bonds for $1,060,000. The bonds are dated January
Paul [167]

Answer:

$1,076,000

Explanation:

 The computation of the carrying value of the bonds is shown below:

= Face value of the bond + unamortized bond premium

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We simply added the face value of the bond and the unamortized bond premium so that the carrying value of the bond could come

All other information which is given is not relevant. hence, ignored it

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2 years ago
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Lemur [1.5K]

Answer:

Answer is C

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Key performance indicators are sets of quantifiable measures used to evaluate how effectively an organization is achieving its key organizational objectives.

The keyword here is "quantifiable".

Therefore, recording the percentage of help desk calls answered in the first minute helps to know just how effective the company is probably helping its customers have great experience or easy usage of its products or services by the number of customers calls answered to, or how effective the customer service is.

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