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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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When you are in a strategic alliance or strategic partnership, you have an agreement between one another for objectives to be accomplished but still operating as independent entities. When one company partners with another company, knowledge and resources are usually gained to where one or both parties benefit.

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Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next ye
mixas84 [53]

Answer:

The value of nominal GDP in years 1 and 2 respectively is:

  • $900 and $1,077.50.

Explanation:

real GDP is based on the prices of a base year and it is affected by the total output of goods and services, not the nominal value of the goods and services.

real GDP year 1 = ($3 x 100 balls) + ($8 x 75 pizzas) = $900

real GDP year 2 = ($3 x 110 balls) + ($8 x 80 pizzas) = $970

nominal GDP year 1 = ($3 x 100 balls) + ($8 x 75 pizzas) = $900

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4 0
3 years ago
Prepare the 2017 and 2018 common-size balance sheets for just dew it. (do not round intermediate calculations. Enter your answer
Nina [5.8K]

Answer:

The accounts and other information were missing, so I looked them up:

                JUST DEW IT CORPORATION

                                 Balance Sheet

                              For 2017 and 2018

                                               2017        2018        Cash

                                                                             source / use

Assets:

Current assets

Cash                                    $12,157     $14,105    source

Accounts receivable        $29,382     $32,815    use

Inventory                           $54,632    $57,204     use

Total current assets           $96,171    $104,124

Non-current assets

Net plant and equip.       $367,241   $375,830    use

Total assets                     $463,412   $479,954

Liabilities and stockholders' equity:

Current liabilities

Accounts payable            $46,382     $49,276      source

Notes payable                  $18,246       $19,784     source

Total current liabilities     $64,628     $69,060

Long term debt

Long-term debt                $49,000     $45,000     use

Owners’ equity

Common stock and

paid-in surplus                 $50,000      $50,000        -

Retained earnings          $299,784     $315,894     source

Total owners' equity       $349,784    $365,894

Total liabilities and

stockholders' equity:       $463,412    $479,954

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Answer:

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