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Strike441 [17]
3 years ago
8

​(Related to Checkpoint​ 10.1) ​(Common stock valuation​) Header​ Motor, Inc., paid a ​$2.71 dividend last year. At a constant g

rowth rate of 5 ​percent, what is the value of the common stock if the investors require a 15 percent rate of​ return?
Business
1 answer:
zhuklara [117]3 years ago
8 0

Answer:

The value of the common stock today is $28.455 per share.

Explanation:

For a stock that is paying constant growth rate in dividends, we use the constant growth model of the DDM to calculate the value of stock today. The formula for price using the constant growth model is,

Price = D1 / r - g

Where,

  • D1 is the dividend expected in the next period or D0 * (1+g)
  • r is the cost of equity or required rate of return
  • g is the growth rate in dividends

Price = 2.71 * ( 1 + 0.05 )  / (0.15 - 0.05)

Price = $28.455

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In United States v. Butler, the Supreme Court overturned the Agricultural Adjustment Administration (AAA) because
joja [24]

Answer:

The correct answer is the tax on food processors was unconstitutional.

Explanation:

On January 6, 1936, the Supreme Court decided in the United States v. Butler, that the act was unconstitutional for the collection of this tax on processors only so that it will be returned to the farmers. The regulation of agriculture was considered a state power. As such, the federal government could not force states to adopt the Agricultural Adjustment Act due to lack of jurisdiction. However, the Agrarian Law of 1938 remedied these technical problems and the agricultural program continued.

3 0
3 years ago
Convenience goods like Coke are available almost everywhere in the United States. Thus, Coke uses ______ distribution:
Doss [256]

Convenience products like Coke are available almost everywhere in the United States. Thus, Coke uses intensive distribution, which is related to the strategy of making the product available at many different retailers.

This is a marketing strategy widely used by companies that supply non-durable consumer goods, which are those that are consumed quickly, such as food, beverages and medications.

Therefore, non-durable goods such as Coke need to be replenished quickly, justifying the company's intensive distribution strategy, which makes its products easily available to consumers, increasing its profitability and positioning.

Learn more here:

brainly.com/question/3520708

7 0
2 years ago
What is the difference between being overstaffed and overhired
sp2606 [1]
Overstaffed is "having more members of staff than are necessary" and overhired is "hiring too many employees".
6 0
3 years ago
A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$22.28 and an offer price of ​$23.45. ​Today, it's being
Crank

Answer:

9.85%

Explanation:

Data provided in the question:

Initial Offer price = ​$23.45

Current NAV = ​$22.28

Dividends and capital gains distributions over the year  = $1.09 per​ share

Now,

Holding period return

= [Current NAV + Dividends and capital gains distributions - Initial Offer price ] ÷ Initial Offer price

= [ $24.67 + $1.09 - $23.45 ] ÷ $23.45

= $2.31 ÷ $23.45

= 0.0985

or

= 0.0985 × 100%

= 9.85%

4 0
2 years ago
Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the presi
lilavasa [31]

Answer: User

Explanation: Becca has the role of the user of the new copier machines being purchased for their company, because although she isn't the one making the purchase, she is the one who has the duty to operate the machines on a daily basis.

6 0
2 years ago
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