State chartered banks are required to become members of the federal reserve system.

Global Tek is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent

Tpy6a [65]

Answer:

The value of the stock is $2.558

Explanation:

We need to calculate the present value of future cash flows to calculate the Stock value

First Calculate each year's Dividend

Use the following formula to calculate the expected dividend

Expected Dividend = Current Dividend x ( 1 + Growth rate )^n

Year ______ Working _________ Dividend

1 ______ $0.20 x ( 1 + 16% )^1 ____ $0.232

2______ $0.20 x ( 1 + 16% )^2 ____ $0.269

3______ $0.20 x ( 1 + 16% )^3 ____ $0.312

4______ $0.20 x ( 1 + 16% )^4 ____ $0.362

5______$0.362 x ( 1 + 3.5% ) _____$0.375

Now calculate the present value of each year's dividend using following formula

PV = Dividend / ( 1 + required rate of return )^numbers of years

Year _____ Working ______________________ PRESENT VALUES

1 ______ $0.232 / ( 1 + 15.5% )^1 _____________ $0.201

2______ $0.269 / ( 1 + 15.5% )^2 _____________$0.202

3______ $0.312 / ( 1 + 15.5% )^3 _____________ $0.203

4______ $0.362 / ( 1 + 15.5% )^4 _____________$0.203

5______$0.375 / (15.5% - 3.5% ) ) / ( 1 + 15.5% ) __$1.749

Now calculate the sum of present value of all the dividends

Value of stock = $0.201 + $0.202 + $0.203 + $0.203 + $1.755

Value of stock = $2.558

8 0

3 years ago

Many demographers predict that the United States will have zero populationgrowth in the twenty-first century, in contrast to ave

Fed [463]

Answer:

Check the explanation

Explanation:

The foremost thing is to first consider steady states. The Sluggish population growth rate swings in the line representing population growth and depreciation to the downward trend.
The new stable rate has a superior level of capital per worker thereby having a higher level of output per worker.
In Steady state, the entire output develops at rate n, whereas the output rate per worker grows at figure 0. Hence, slower population growth will hamper the figure of total output growth, but the rate of per-worker output growth will be the same.
Now reflect on the transition. We know that the constant-state level of output per worker is higher with little population growth. Hence, for the period of the transition to the new steady state, output per worker should grow at a rate faster than 0 for a sometime.

7 0

3 years ago

You've collected the following information about a company: Assets Liabilities and Equity Cash 13,000 Accounts payable 16,000 Ma

professor190 [17]

Answer:

The answer is "$228,000"

Explanation:

Formula:

$\text{Total Assets = Current Assets + Fixed Assets}$

$= [\$ 13,000 + \$ 2,000 + \$ 4,000 + \$ 95,000] + [\$ 34,000 + \$ 80,000]\\\\= [\$ 114,000] + [\$ 114,000]\\\\= \$ 228,000$

8 0

3 years ago

Schnusenberg Corporation just paid a dividend of D 0 = $0.75 per share, and that dividend is expected to grow at a constant rate

natta225 [31]

Answer:

Current stock price will be $14.50

So option (a) will be correct answer

Explanation:

We have given dividend paid $D_0=$0.75\ per\ share$

Growth rate g = 6.5 %

Required return on market = 10.50 %

Risk free return = 4.50 %

$\beta =1.25$

So next dividend $D_1=0.75\times (1+0.065)=$0.798$

We have to find thcompany current stock price $P_0$

Required rate of return is given by

Required rate of return = Risk Free Return + $\beta (market\ return-risk\ free\ return)$

= 4.5+1.25×(10.5-4.5) = 12 %

Now current stock price $P_0=\frac{D_1}{R_e-g}=\frac{0.798}{0.12-0.065}=$14.50$

So option (a) will be correct option

3 0

4 years ago

The term consideration used in regards to a contract means

Rashid [163]

Answer:

something of value must be given by party.

Explanation:

In the contract agreements, the term consideration means something of value offered by one part in exchange for other goods, services, or promises. In most cases, consideration is in monetary form, although money is not the only valuable item acceptable as consideration. Consideration is the benefit that one enjoys by fulfilling their obligation in a contract.

For contacts to be valid, there must be a consideration. Only lawful valuable can be considered as consideration.

8 0

3 years ago