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Andru [333]
3 years ago
11

Williams Inc. is expected to pay a $5 dividend next year and that dividend is expected to grow at 2.5% every year thereafter. If

the discount rate is 11.6%, what would be the present value of the expected dividend stream (aka the expected price of the firm's stock)? g
Business
1 answer:
oksano4ka [1.4K]3 years ago
5 0

Answer:

Expected dividend (D1) = $5

Cost of equity (Ke) = 11.6% = 0.116

Growth rate (g) = 2.5% = 0.025

Po = <u>D1   </u>

       Ke - g

Po = <u>$5</u>

        0.116 - 0.025

Po = <u>$5</u>

        0.091

Po = $54.95

Explanation:

The current market price of the stock is a function of expected dividend divided by the difference between expected return and growth rate.

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Suppose Capital One is advertising a 60​-month, 5.04 % APR motorcycle loan. If you need to borrow $ 8 comma 100 to purchase your
zhuklara [117]

Answer:

$153.01

Explanation:

For computing the monthly payment we need to apply the PMT formula i.e to be shown in the attachment

Given that,  

Present value = $8,100

Future value or Face value = $0

RATE =   60 months = 5 years × 12 months

NPER = 5.04% ÷ 12 months = 0.42%

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the monthly payment is $153.01

3 0
4 years ago
What is the difference between intra departmental communication and interpersonal departmental communication
natima [27]

Answer:

Difference between intra departmental communication and interpersonal departmental communication

Explanation:

Intra means within , Inter means between

Intra departmental communication means communication (exchange of information) between people, within the same department in an organisation.

Interpersonal departmental communication means communication (exchange of information) between people, from different departments in an organisation.

5 0
3 years ago
The value of the consumer price index (CPI) is best described as the:______
Ivenika [448]

Answer:

Option A.

Current year prices to base year prices, holding the market basket content constant

Explanation:

In simpler terms the Consumer price index a value used in measuring inflation in an economy. It  is a value that measures the weighted average of a basket of consumer goods and services such as food and transportation, healthcare etc. They are used to assess price changes associated with the cost of living in a particular society.

The formula for calculating The Consumer Price index is given as

CPI=  (Cost of Market Basket in Base Year / Cost of Market Basket in Given Year ) ×100

This makes the correct answer option A.

8 0
4 years ago
Read 2 more answers
Garland induces Jules to enter into a contract for the purchase of a Chef’s Burger House restaurant. Garland knowingly misrepres
jeka94

Answer:

Jules can rescind the contract on the basis of fraud.

Explanation:

Since Garland misrepresented the material facts about the restaurant, that constitutes fraud.

When a party involved in a contract is purposefully dishonest with the other parties while making or performing a contract, it is called contract fraud. Contract fraud also occurs when a party intentionally misrepresents the material facts concerning the contract.

4 0
3 years ago
An industry experiences a technological advance that improves productivity. This change will result in a(n):
valentina_108 [34]

Answer:

decrease in marginal cost for firms in the industry and an increase in the industry supply curve

Explanation:

Supply is the ability of suppliers to produce goods to meet demand for that good at a particular period in time.

There will be an increase in demand when procedures for production are more efficient and when cost reduces.

In this case where there is a technological advance that improves productivity, the suppliers will be able to produce more goods at less cost.

So marginal cost will decrease because of the improved technology and supply will increase because of more efficient process of production.

8 0
3 years ago
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