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
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.

You might be interested in
you are a manager of a large business enterprise. explain how you would address issues of equality respect and dignity in your b
irina [24]
<span>As a manager of a large business enterprise, I will address the issue of equality, respect and dignity in my business by employing the following tactics: [1] I will dutifully informed everyone in the company about the respect for co-worker policy of the company and the penalties for the offenders. [2] I will take the pain to always listen to the compliant any one has about a colleague and find ways of resolving the issue. All complain will be investigated with equal diligence. [3] I will regularly organize training seminars that aim at improving the mutual understanding among workers. [4] I will adopt a zero tolerance policy concerning workers who disrespect their colleagues. These techniques will help to enforce respect, dignity and equality among my workers.</span>
3 0
3 years ago
Which would be considered part of an employee’s salary?
shepuryov [24]

Answer:

Amount of money the employee will earn each month.

4 0
2 years ago
Setting aside the political issues between North Korea and the United States, is there a reasonable way to respond to an anonymo
hichkok12 [17]
Yes by consulting the leaders involved
4 0
3 years ago
katie has $20.She buys 3 packages of markers for 4 dollars how much is left write this in Numerical Expressions
-Dominant- [34]
Here is how to solve this:

$20 - $4= $16 = numerical expression.


Hope this helped!


3 0
3 years ago
Read 2 more answers
Which of the following is considered an advantage/benefit of utilizing an ERP system? a. Enables the company to utilize a single
ahrayia [7]

Answer:

The correct answer is A

Explanation:

ERP termed as or stands for Enterprise Resource Planning, which is defined as the centralized system, that provides the integration with the enterprise functions be it analytics, planning, sales, finance, HR, customer relations and procurement as well other application functions which are connected.

So, this system consider the benefit of enabling the company to use the single database system, which is centralized and thus remove the duplicate data entries.

8 0
3 years ago
Other questions:
  • What is a strategy for reducing the risk of identity theft?
    8·2 answers
  • Coronado Company purchased land for $80,000. The company also paid $12,000 in accrued taxes on the property, incurred $5,000 to
    7·1 answer
  • "An individual owns a bicycle repair business as a sole proprietorship. He does not make a lot of money, but he does have $5,000
    15·1 answer
  • Production records show that there were 440 units in the beginning inventory, 30% complete, 1,440 units started, and 1,600 units
    15·1 answer
  • QUESTION 6 of 10: Ashleigh hires a group of security staff. Each worker works an average of 80 hours per month at $14/hour. If h
    6·1 answer
  • What kind of inventory tracking system shows the cost and gross profit margin in
    12·1 answer
  • Which of the following are arguments that are given to support trade barriers?
    15·1 answer
  • You get a $3,000 loan at 9% interest for 120 days. The lender uses a 365-day year. How
    9·1 answer
  • The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 26 percent of its bu
    10·1 answer
  • What is the best explanation for the slope of the keynesian zone of the aggregate supply curve?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!