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elena-s [515]
3 years ago
14

Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the compan

y is not expected to pay anything ever again. If the required return is 15 percent, what is the maximum that you would be willing to pay for a stock of Universal today
Business
1 answer:
tester [92]3 years ago
4 0

Answer:

Maximum price to be paid for the stock = $12.43

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>

Year                                   PV of dividend

1                                          8  ×1.15^(-1)  

2                                           4 ×  1.15^(-2)  

3.                                              2 × 1.15^(-3)    

4                                                  2 × 1.15^(-4)    

PV of dividend =   (8 ×1.15^-1) +  (4 × 1.15^-2)  + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439

Maximum price to be paid for the stock = $12.43

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Arte-miy333 [17]

Answer:

$ 896,000.00

Explanation:

September $800,000

October $920,000

November $840,000

December $760,000

Payments for November:

30percent purchase for November: = 30/100 x $ 840,000.00

        = $ 252,000.00

70 percent payment for the  previous  month

        =70/100 x $ 920,000.00

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Total payments = $ 252,000 + $ 644,000.00

   =$ 896,000.00

4 0
3 years ago
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Answer:

He should attend classes at the local college to receive training in management.

Explanation:

Best option.

6 0
3 years ago
A broker is an agent who:A. Trades on the floor of an exchange for himself or herself.B. Buys and sells from inventory.C. Offers
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Answer:

D. brings buyers and sellers together

Explanation:

6 0
2 years ago
Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain. Gro
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This is true about about logistics. It is the process of coordinating the flow of goods, services, and information among all members of the supply chain.

<h3>What is the importance of logistics?</h3>

In the business and the supply world, logistics is very important for the reasons that have been listed below:

  • It helps to increase customer satisfaction.
  • It helps in the control of a businesses inventory.
  • It increases efficiency in the business place.
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Read more on logistics here: brainly.com/question/23177203

8 0
2 years ago
When its sales were declining, canadian airline conducted a marketing survey to understand the expectations of the business trav
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Answer:

The correct answer would be, The Canadian Airline would have used Lost Customer Recovery Strategy.

Explanation:

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7 0
3 years ago
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