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
Mashutka [201]
3 years ago
15

XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are exp

ected to grow at a rate of 10 percent indefinitely. If an investor has a required rate of return of 15%, what price would he be willing to pay for XYZ stock?a. $12.50 b. $25.00 c. $30.00 d. $40.00
Business
1 answer:
Verizon [17]3 years ago
6 0

Answer:

Price of stock  = $40

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8

g- growth rate - 10%

r- required rate of return - 15%

Price of stock = 1.8× (1.1)/(0.15-0.1)

                    = $40

You might be interested in
Tonto Company purchased property for $125,000. The property included a building, equipment and land. The building was appraised
velikii [3]

Answer:

The cost allocated to the building is $ 62,068.97  

Explanation:

The total appraised cost for the components of the property purchased=$72,000+$50,000+$23,000=$ 145,000.00  

The cost allocated to the building in the accounting records is the cost of the property multiplied by the building appraised value of $72,000 while dividing by the total of the  appraised value of $145,000

cost allocated to building=$125,000*$72,000/$145,000=$ 62,068.97  

3 0
3 years ago
Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee. What would be the best way to describ
Levart [38]

The best way to describe the steps is to define them in a systematic way.

Explanation:

For recruiting, Nelson should look for various alternatives where he can approach skilled group of people like institutions and colleges, placement agencies or he can also contact head hunters for highly skilled jobs.

For onboarding he should access the talent potential employee is bringing on the table considering the general market practice for such job and thus offering him a pay structure that would attract him to join keeping the best interest of the company in mind.

He should also make him clear the terms and conditions as per the job and providing him a healthy work environment and help him to get to know the people he will be working with.  

To know more about Recruitment, click here

https://brainly.in/textbook-solutions/q-state-difference-recruitment-selection-2

#SPJ1

6 0
1 year ago
Recession and inflation have decreased the value of your investments. This is an example of ______.a. economic risk. b. industry
Fantom [35]

Answer:

A

Explanation:

Economic risk is the risk that macroeconomic conditions would affect the value of investment .

Examples of economic risks are Recession and inflation

5 0
3 years ago
Andrew Flint is the CEO of a small, publicly held company based in Idaho Falls, Idaho. Flint earned $76,000 last year as CEO. In
Natasha2012 [34]

Answer:

D, Flint can simply write ot the SEC to voice his concerns.

Explanation:

Since Flint does not have a case that warrants a court challenge but rather an observation, Flint can simply write to the SEC to intimate them about his observations and/or findings, as well as let the SEC know the position of his company on the rule being proposed by it.

Cheers.

6 0
3 years ago
Which of the following are not traits of entrepreneurs?
Phantasy [73]

Answer: dishonesty and dependence.

Explanation:

8 0
3 years ago
Other questions:
  • Joana volunteers to deliver a last-minute presentation on behalf of her team. Which quality is Joana demonstrating?
    12·2 answers
  • If the demand curve is very elastic and the supply curve is very inelastic in a market, then the sellers will bear a greater bur
    6·1 answer
  • Where did newsboys live in the industrial revolution?
    14·1 answer
  • Which of the following is NOT correct?Select one:a. Finance companies are not allowed to accept deposits.b. Finance companies ar
    10·1 answer
  • Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flowe
    12·1 answer
  • Select the correct answer.
    15·1 answer
  • P11-1A Tidal Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of 6%, $50 par value preferre
    7·1 answer
  • Markung's Co. is 100% equity-financed company (no debt or preferred stock); hence, its WACC equals it cost of common equality. M
    5·1 answer
  • What are the opportunity offers by<br>vocational education?​
    5·1 answer
  • 1. The people, procedures, hardware, software, data, and knowledge needed to develop computer systems and machines that can simu
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!