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swat32
4 years ago
14

Jessica's Pharmacy made two announcements concerning their common stock today. First, the company announced the next annual divi

dend will be $1.48 a share. Secondly, all dividends after that will increase by 2.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock if your goal is to earn a 12 percent rate of return?
Business
1 answer:
Tcecarenko [31]4 years ago
8 0

Answer:

Explanation:

Next year's dividend (D1) = 1.48

Perpetual growth rate (g) =2.5% or 0.025 as a decimal

Rate of return or discount rate = 12% or 0.12 as a decimal

Since the dividends will be growing at a constant rate with no definite time period, it means that it will grow at that rate forever.

Use present value of growing perpetuity formula to calculate the price of this stock;

Price = D1 /(r-g)

Price = 1.48 / (0.12 - 0.025)

= 1.48/ 0.095

= 15.5789

Therefore the maximum amount you should pay is $15.58

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The Chinese government chooses to control the value of its currency so that it is consistently worth some fixed amount of U.S. d
Vadim26 [7]

Answer: pegged exchange rate

Explanation:

A pegged exchange rate also referred to as the fixed exchange rate, sometimes is an exchange rate regime type whereby the value of a currency is fixed by the monetary authority of a particular country against the value of the currency of another country.

This is the type of exchange rate used by the Chinese government in the question above.

8 0
4 years ago
Based on the research, a marketer tells a possible customer that with this new variety of corn they can expect to receive more t
olga nikolaevna [1]

This means that the research shows that 95% of the yield is between 118 to 130 bushels per acre. The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.

<h3>Confidence interval</h3>

Given that 95% confidence interval for the true mean yield is 118 to 130 bushels per acre.

This means that the research shows that 95% of the yield is between 118 to 130 bushels per acre. The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.

Hence:

μ ± E = (118, 130)

where μ is mean and E is margin of error

μ - E = 118 (1)

Also:

μ + E = 130   (2)

From both equations:

μ = 124, E = 6

The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.

Find out more on Confidence interval at: brainly.com/question/15712887

7 0
3 years ago
Suppose that Markus Braun has a set of steps that Wirecard takes each time they acquire a new company. This is known as a .
brilliants [131]

The name which is given to the set of steps which Markus Braun to make sure that Wirecard acquires a company is:

  • Strategic goal

<h3>What is a Strategic Goal?</h3>

This refers to the long term objectives of a company or business which usually requires patient planning and moves which helps to achieve the aims and objectives of the company.

With this in mind, we can see that because Markus Braun is taking careful steps in order to acquire a new company, then this is known as strategic goal.

Read more about strategic goal here:
brainly.com/question/24462624

7 0
2 years ago
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production
lukranit [14]

Answer: $1,900 less than under absorption costing.

Explanation:

The ending inventory of finished goods under variable costing is the difference in carrying value of ending finished goods inventory.

That is calculated as,

Difference in Carrying Value of Ending Finished Goods Inventory = Unit fixed Manufacturing Overhead * Change in Inventory in Units

The Unit Fixed Manufacturing Overhead as implied is the fixed Manufacturing Overhead per unit

Calculated therefore as,

Unit fixed manufacturing overhead = 129,010 / 6,790

= $19

Now that we have that, we can refer back to thw first formula,

Difference in carrying value of ending finished goods inventory = Unit fixed manufacturing overhead * Change in inventory in units

= 19 × (6,790 - 6,690)

= $1,900

The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be $1,900 less than under absorption costing.

6 0
3 years ago
How to do presentation​
Tatiana [17]

Explanation:

You can go to Microsoft words or Power point..

These can help you type your presentation or if on phone you can go to normal Notes app or word app....

I hope this helps you

3 0
3 years ago
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