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ira [324]
3 years ago
13

A stock is expected to pay $ 1.10 per share every year indefinitely and the equity cost of capital for the company is 8.4​%. Wha

t price would an investor be expected to pay per share ten years in the​ future?
Business
1 answer:
Marina CMI [18]3 years ago
5 0

Answer:

$13.06

Explanation:

Data provided in the question

Expected dividend pay every year  = $1.10

And the equity cost of capital is 8.4%

So, the price expected to pay per share ten years in future is

= Expected dividend pay every year ÷ the equity cost of capital

= $1.10 ÷ 8.4%

= $13.06

By dividing the expected dividend by the equity cost of capital we can get the price

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An airport in Japan is planning to purchase a parcel of land for building additional executive hangars in five years. The price
Vsevolod [243]

Answer:

The airport should invest a uniform amount of A=$357,958.55

Explanation:

Hi

First of all, we need to know how much will cost the land in five years so we have, F=2000000*(1+0.05)=2100000, that means that the future value of the land will be $2'100,000.

Now we can use A=\frac{F}{\frac{(1+i)^{n} -1}{i} } with F=2100000, n=5 and i=8%, so we have A=\frac{2100000}{\frac{(1+008)^{5} -1}{0.08} }=357958.55

8 0
3 years ago
On July 1, Alaskan Adventures issues a $120,000, eight-month, 6.5% note. Interest is payable at maturity. What is the amount of
xz_007 [3.2K]

Answer:

December 31  Interest expense       $3900 Dr

                           Interest Payable            $3900 Cr

Explanation:

The interest and principal is both payable at maturity thus we need to accrue the interest payment and create a liability against the amount of interest due. The adjustment is made 6 months from the issue of the note thus the interest for 6 months is due. The entry would be to record 6 month's interest that relates to this year. The interest expense will be,

120000 * 0.065 * 6/12 = $3900

As the payment is not made until maturity we will credit interest payable by this amount.

8 0
4 years ago
9 a company reports its 2010 cost of goods sold at $15.0 million. its ending inventory for 2010 is $1.6 million and for 2009, en
sasho [114]
My guess is a.$14.6. I might be wrong.
3 0
3 years ago
True or false: most riders cannot tell the difference between low-risk behavior and high-risk behavior.
EleoNora [17]

The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE.

<h3>What is high-risk behavior.?</h3>

This refers to the type of behavior that a person engages in that could lead to severe consequences.

Hence, we can see that The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE and this is because they know when they put themselves in danger and when they are following protocols and guidelines about safety.

Read more about high-risk behavior here:

brainly.com/question/3711204

#SPJ1

4 0
2 years ago
If the Fed buys U.S. government securities from banks, the federal funds rate ________ and banks' reserves ________.
expeople1 [14]

If the Fed buys U.S. government securities from banks, the federal funds rate falls and banks' reserves increase.

<h3>Fed's Monetary Policy</h3>
  • Price stability and full employment, the Federal Reserve's two legally mandated goals, are necessary to ensure a healthy and expanding economy in the United States.
  • In the past, the Fed has achieved this via modifying reserve requirements, conducting open market operations (OMO), and influencing short-term interest rates.
  • By acquiring government assets, the Fed helps to boost bank reserves and bring down the federal funds rate. Government securities will be sold by the Fed on the open market.
  • The Fed reduces the amount of money in circulation by selling government assets, which raises the federal funds rate.
  • OMO has an impact on interest rates as well because when the Fed purchases bonds, prices are pushed up and rates are lowered; conversely, when the Fed sells bonds, prices are pushed down and rates are raised.

To learn more about Fed's Monetary Policy refer to:

brainly.com/question/14158316

#SPJ4

8 0
2 years ago
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