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andriy [413]
3 years ago
7

Coolibah Holdings is expected to pay dividends of $ 1.10 every six months for the next three years. If the current price of Cool

ibah stock is $ 22.00​, and​ Coolibah's equity cost of capital is 14​%, what price would you expect​ Coolibah's stock to sell for at the end of three​ years?
Business
1 answer:
Viktor [21]3 years ago
6 0

Answer:

$25.15  

Explanation:

The price the stock would be sold at the end of the three-year holding period can be computed using excel FV formula stated below:

=fv(rate,nper,pmt,-pv)

rate is the semiannual cost of capital i.e 14%/2=7%

nper is the number of dividend payments over three-year period which is 6

pmt is the amount of semiannual dividend payment

pv is the current stock price

=fv(7%,6,1.1,-22)=$25.15  

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The first year they were offered, John wanted a tablet computer, but he did not know which one to choose. He waited until there
lbvjy [14]

Answer:

Early Majority

Explanation:

Early Majority -

It consists of around 34% of the total population, these are the type of people, who adapts to a innovative goods or services after some varying degree of time , is referred to as the Early Majority .

They take the time period to get their hands on the new stuff is much longer time in comparison to the early adopters and innovators .

As these people smartly goes through the complete analysis of the product , all the review and wait for the price to get down and buys on the best price .

Hence, from the given scenario of the question ,

The correct answer is Early majority.  

4 0
3 years ago
4. Which of the following is false?
KatRina [158]

Answer:

D

Explanation:

7 0
3 years ago
A small business produces a single product and reports the following​ data: Sales price ​$8.50 per unit Variable cost ​$5.25 per
ozzi

Answer:

The correct answer is Decrease by $5,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate the previous operating income, by using following formula:

Previous operating income = ($8.5 - $5.25) × 10,000 units - $22,000

= $10,500

Now, we will calculate the current operating income by using following formula:

New operating income = ($7.5 - $5.25) 12,000  units - $22,000

= $5,000

So, the change in operating income can be calculated as

Change in operating income = New operating income - Previous operating income

= $5,000 - $10,500

= -$5,500 ( Negative shows Decrease)

= Decrease by $5,500.

8 0
3 years ago
Which of the following assumptions would cause the constant growth stock valuation model to be invalid? The growth rate is zero.
Svetlanka [38]

Answer:

e. None of the above assumptions would invalidate the model

Explanation:

Incomplete question <em>"The constant growth model is given below: P0 = [D0(1 + g)]/[(rs - g)]"</em>

<em />

According to dividend discount model,  

P0 = D1/(R-G)

D1 - Dividend at t =1

R - Required rate

G - Growth rate

This would be invalid if R < G. In other words, Dividend growth model will be invalid in only one situation, that is, when growth rate is more than require return. In this situation growth model cannot be used.

8 0
2 years ago
A customer has invested a total of $10,000 in a nonqualified deferred annuity through a payroll deduction plan offered by the sc
Blababa [14]

Answer:

On $6000 amount customer be taxed

Explanation:

given data

total invest = $10000

current value = $16000

to find out

On what amount customer be taxed

solution

we know customer is invest here total $10000 and

current value is now $16000

so we can say that here payment non qualified deferred, annuity  after tax

so tax are paid of earning

so earning =  current value - invest

earning = 16000 - 10000

earning = $6000

so on $6000 amount customer be taxed

3 0
3 years ago
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