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
vekshin1
3 years ago
9

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.5

3 a share. The following dividends will be $.58, $.73, and $1.03 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.6 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 10 percent? Multiple Choice $16.67 $17.27 $3.40 $17.20 $13.60
Business
1 answer:
konstantin123 [22]3 years ago
7 0

Answer:

The current stock price is $13.60

Explanation:

D1 = $0.53

D2 = $0.58

D3 = $0.73

D4 = $1.03

Growth rate, g = 3.60%

Required return, r = 10.00%

D5 = D4 * (1 + g)

D5 = $1.03 * 1.036

D5 = $1.06708

P4 = D5 / (r - g)

P4 = $1.06708 / (0.10 - 0.036)

P4 = $16.673125

P0 = $0.53/1.10 + $0.58/1.10^2 + $0.73/1.10^3 + $1.03/1.10^4 + $16.673125/1.10^4

P0 = $13.60

So, current stock price is $13.60

You might be interested in
If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the eco
coldgirl [10]

Is this a theory type of question?

If it is and if it took place under president Calvin Coolidge then taxes likely would have gone up.

If you are talking about now, then investment might go up but in order to pay for it, the government will just print more money, so that taxes shouldn't go up.

I'd pick C.

4 0
3 years ago
Read 2 more answers
Question 2<br>Name and describe the basic functions in a warehouse.​
maks197457 [2]

Answer:

Storage

Explanation:

a psychological process

4 0
2 years ago
Read 2 more answers
A currency trader observes that in the spot exchange market, one U.S. dollar can be exchanged for 10.875 Mexican pesos or for 6.
Anastaziya [24]

Answer:

d. 1.753 pesos/krone

Explanation:

The computation of the received pesos for exchange is shown below

Received pesos = Exchange value of one U.S dollar for Mexican pesos  ÷ Exchange value of one U.S dollar for Mexican pesos

= 10.875 ÷ 6.205

= 1.753 pesos/krone

It shows a relationship between the Exchange value of one U.S dollar for Mexican pesos and the Exchange value of one U.S dollar for Mexican pesos so that per pesos/krone can come

4 0
3 years ago
Tidy Service Company performed cleaning services during December 2019, but had not collected any cash from its customers as of D
vredina [299]

Answer:

The service increased assets and increased stockholders' equity

Explanation:

Based on the information given the impact that

did performing these services have on the accounting equation will be THE SERVICE INCREASED ASSETS AND INCREASED STOCKHOLDERS' EQUITY reason been that

when Performing the services will help to generate revenue,

5 0
3 years ago
A Masters degree candidate needs to conduct a research project for her Masters thesis. She is interested in the types of junk fo
ladessa [460]

Answer:

The answer is: D) Not human subjects

Explanation:

Her research project is about junk food availability, and that doesn´t include research with human beings. The research should be classified as Not Human Subject since it doesn´t involve any living individual.

Research done on humans are classified as:

  • Exempt from review: if it involves very minimal or no risk for human participants.
  • Expedited review: if it doesn´t classify as exempt review but it involves no more than minimal risk to the participants and meets other standards, such as not including protected classes or vulnerable populations, and not using intentional deception.
  • Full board review: If it doesn´t classify as exempt from review or expedited review.

8 0
3 years ago
Other questions:
  • Consumers will pay more of a tax levied on suppliers if their demand is:
    15·1 answer
  • The number of suppliers that enter and leave the market has no effect on the number of goods or services supplied.
    13·2 answers
  • Super Carpeting Inc. just paid a dividend of $2.64 and its dividend is expected to grow at a constant rate of 5.50% per year. If
    10·1 answer
  • One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second
    15·1 answer
  • When school districts are funded by local taxes only, the likelihood of disparities in funding goes up.
    12·1 answer
  • In​ 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the United States. What was the real interest rate
    15·1 answer
  • Noah, age 65, and Ella, age 54, are married. They elect to file Married Filing Jointly.
    11·1 answer
  • Celestial Insurance hires college graduates and prepares them for management careers. The human resource professionals who prepa
    6·1 answer
  • 14 Select the correct answer. Which marketing strategy is the most effective in the modern era? O A relationship marketing B. ma
    8·1 answer
  • Explain how<br> Globalization<br>can impact a labor market.​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!