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m_a_m_a [10]
4 years ago
7

. In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hit

ech stock for $57 per share after 1 year. If you require a rate of return of 16 percent on Hitech stock, how much would you be willing to pay now for a share of the stock?
Business
1 answer:
Talja [164]4 years ago
3 0

Answer:

$52.89

Explanation:

To calculate the present value of a stock, we use the formula,

<u>D + E</u>

(1 + R)^Y

where, D = expected dividend, $4.35

           E = expected stock price, $57

           R = real rate of return, 16% or 0.16

           Y = Number of years, 1

we have,

<u>$4.35 + $57</u>

(1 + 0,16) ^1     = $61.35 ÷ 1.16

                      = $52.887 ≈ $52.89.

The present value of the stock is  $52.89.

Cheers.

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<h3>What is advertising?</h3>

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The complete question is:

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2 years ago
Bill's tendency to consider evidence that supports his position on illegal immigration, but disregards evidence that refutes his
Anit [1.1K]

an example of overconfidence would be:  Joe makes a stock price prediction and believes that there is only a 5% chance that his estimate is wrong; overlooking recent articles about the bad financial health of the business.

Buying stocks without any prior knowledge in finance would provide people with 50% rate of success. Good stock traders usually could improve their success rate up to 70% while success rate of 95% is very unlikely. Especially if the financial information showed a bad sign. The fact that Bill still put his money on the company's stock indicates that he is overconfident.

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4 years ago
By 1830 home manufacture had declined significantly due to:
taurus [48]

Answer:

E

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4 years ago
The salary for an occupation is determined by the federal government <br> True or false?
strojnjashka [21]

Answer:

No the given statement is not correct.  

Explanation:

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Nesterboy [21]

Answer:

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the treasury stock are purchased at the market price which is not the same as the issuance price thus, we ignore it.

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from which it has $168,000 additional paid-in

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