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
Sunny_sXe [5.5K]
3 years ago
10

A stock sells for $12.36 a share and has a required return of 9 percent. Dividends are paid annually and increase at a constant

3 percent per year. What is the amount of the last dividend paid?
Business
1 answer:
jenyasd209 [6]3 years ago
7 0

Answer:

$0.72

Explanation:

The computation of the amount of the last dividend paid is shown below:

Market price of a stock = Last dividend × (1 + growth rate) ÷ Required  rate of return - growth rate

$12.36 = Last dividend × ( 1 + 0.03) ÷ 0.09 - 0.03

$12.36 = Last dividend × (1.03) ÷ 0.06

$12.36 × 0.06 = 1.03 × last dividend

$0.7416 = 1.03 × last dividend

So,

last dividend is

= $0.7416 ÷ 1.03

= $0.72

You might be interested in
On January 8, Lowrence Co. issued a $60,000, 120-day discounted note to Raines Bank. The discount rate is 8%. Assuming a 360-day
Salsk061 [2.6K]

Answer:

a. $58,400

Explanation:

A discounted note, will make the person receive a lesser amount than the amount due at maturity. This way the person who grants the note is receiving interest for borrowing.

<em><u>Calculations</u></em>

principal x discount rate x time = discount

<em><u>Where</u></em> rate and time should be expressed in the same metric IE if the rate is annual express time in portion of years if it is monthly, in months.

60,000 x 0.08 x 120/360 = 1,600

Now, we subtract this amount form the nominal:

nominal - discount = net

60,000 - 1,600 = <u>58,400</u>

6 0
3 years ago
Read 2 more answers
All interest rates in the economy are set by the federal reserve. true or false
aivan3 [116]

Answer:

False

Explanation:

Most interest rates in the economy are not set by federal reserve. For example, banks decide what interests to pay different kind of deposits and charge loans of different risks on their own (with consideration for competition and profitability).

What the Fed does is set important rates (discount rate and funds rate) that influence other interest rates in the economy.

6 0
3 years ago
Direct costs typically include the cost of direct labor as well as other direct costs for items such as material, travel, subcon
borishaifa [10]

Answer:

True

Explanation:

The direct cost is that cost which is directly related to the manufacturing process of the product or the production process of the product

The example of the direct cost involves direct material cost, direct labor cost, supplies cost of manufacturing, travel, subcontracts, computer time, etc

Hence, the given statement is true.

8 0
3 years ago
The top managers of Promedium Inc. are creating a master budget for the company. They require a statement of the budget goals fr
Anettt [7]

Answer:

The correct answer is budget slack.

Explanation:

Budget slack occurs in a company when one or more people with budgetary responsibility create a budget that overestimates expenses and / or underestimates projected income or income.

Intentional budget slack can occur because a manager feels under the weapon to "make their numbers", often in response to previous quarters where revenues fell below projections and, more importantly, did not meet expectations of the owners or shareholders.

4 0
3 years ago
Distribution network is not required for
Zepler [3.9K]

Answer:

O Perishable

Explanation:

The distribution network required for the products that are standardised, durable and unstandardised that means for storage purpose

But in the case of the perishable goods, the goods that are not stored for the longer time that means it consumed immediately like milk, bread, eggs, etc

So as per the given option, the last option should be relevant

4 0
3 years ago
Other questions:
  • An opportunity cost: Multiple Choice Requires a current outlay of cash. Is an unavoidable cost because it remains the same regar
    7·2 answers
  • It becomes particularly urgent for a company to consider diversification when there are
    9·1 answer
  • Which of the following are sources of​ income-based payments that domestic residents make to​ foreigners? ​(Check all that apply
    6·1 answer
  • Isaac is looking for a business angel. his best chance of finding one is through:
    8·1 answer
  • Which of the following might not be an option for increasing your present income? (1 point)requesting a promotion requesting a m
    11·1 answer
  • If a company is given credit terms of 2/10, n/30, it should________.
    10·1 answer
  • The straight-line depreciation method and the double-declining-balance depreciation method: Multiple Choice Are acceptable for t
    5·1 answer
  • Broad, Inc. had a beginning inventory of $50,000 and an ending inventory of $80,000. Its Cost of Goods Sold for the year was $97
    13·1 answer
  • Casey Motors recently reported the following information:
    8·1 answer
  • The invisible hand refers to the Multiple Choice fact that the U.S. tax system redistributes income from rich to poor. fact that
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!