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
max2010maxim [7]
3 years ago
8

Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all future dividends will be incr

eased by 2.1 percent annually. What is one share of this stock worth to you if you require a rate of return of 15.7 percent? Multiple Choice
$12.95
$11.91
$10.54
$12.16
$13.07
Business
1 answer:
Irina18 [472]3 years ago
4 0

Answer:

Option (d) is correct.

Explanation:

P0 = D1 ÷ (ke - g)

Where,

P0 is the price = ?

Currently dividend paid, D0 = $1.62 a share

ke is the required return = 15.70%

g is the growth rate = 2.10%

D1 is the dividend at end of year:

= D0 × (1 + g)

= $1.62 × (1 + 0.021)

= $1.62 × 1.021

= $1.65402

Therefore,

P0 = 1.65402 ÷ (15.7% - 2.1%)

     = 1.65402 ÷ (13.6%)

     = $12.16

Therefore, the price of one share of this stock is $12.16

You might be interested in
The costs incurred by a business in an effort to avoid bankruptcy are classified as _____ costs. Flotation Direct bankruptcy Ind
poizon [28]

Answer:

The correct answer is indirect bankruptcy costs.

Explanation:

Indirect costs are considered to be damage to the image and reputation of the company, lost investment opportunities, credit restrictions, conflicts with suppliers, loss of sales, conflicts with workers. Indirect costs are usually much higher than direct costs.

6 0
3 years ago
FDIC is:
seropon [69]

Answer:

c) A government insurance program that will pay back account holders if the bank or lending institution fails

Explanation:

The FDIC is an acronym for Federal Deposit Insurance Corporation. It was founded by Franklin Roosevelt on the 16th of June, 1933.

FDIC is a government insurance program that will pay back account holders if the bank or lending institution fails.

The income generated from the premium payments of insured banks is used to fund or finance the FDIC.

5 0
3 years ago
Read 2 more answers
A mutual fund in which shares are issued only when the fund is organized is called a(n) __________ fund.
nadezda [96]
The answer is closed-end.
7 0
3 years ago
Samsonite has declared a 90% stock dividend. At the time of the declaration, Samsonite's stock was selling for $250 per share. I
NeTakaya

Answer:

$131.58

Explanation:

The computation of the new stock price is shown below:

= Selling price of stock per share ÷ current number of shares

= $250 ÷ 1.90

= $131.58

Since the 90% dividend is declared. It means for each share 90% dividend is declared so after stock dividend, the number of shares would be

= 1 + 90%

= 1 + 0.9

= 1.9

We simply divide the selling price by the current number of shares

4 0
3 years ago
Discuss 2 of the 10 Marketing trends that I went over. Answer the following questions: 1. What is the trend? 2. How does it impa
tester [92]

Explanation:

The 2 of the market trend which I am going to discuss is that.

1. Customer experience: Nowadays you need not go to customer, convince and make them to buy the product. Nowadays, people get huge information online and then they shop. So given customer experience is vital to be on road

2. Live platform: People's interest has been changed from time to time. Now its all the live platform where the people spend lot of time over the recorded video.

Answers for the questions asked:

1. The thing which people likes the most at present and it keeps changing.

2. A product will be sold, only if the people mass likes it.

3. Trend cannot be eliminated. It keeps changing.

4. Do things which are trendy.

7 0
3 years ago
Other questions:
  • Once you are signed up for overdraft protection, you cannot opt out?<br>True or False​
    15·1 answer
  • If the reserve-deposit ratio is less than one, and the monetary base increases by $1 million, then the money supply will
    13·2 answers
  • A company's balance sheet shows: cash $28,000, accounts receivable $34,000, equipment $58,000, and equity $76,000. what is the a
    12·2 answers
  • The consumer sales promotion that involves the use of a brand-name product in a movie, television show, video game, or a commerc
    8·1 answer
  • A British Tran jet costs $ 42,000,000 and is expected to fly 350,000,000 miles during its 12​-year life. Residual value is expec
    12·1 answer
  • consumers ina competative market are considered to be price takers because each tends to buy of the total amount of a produced g
    6·1 answer
  • Suppose Kim purchases a new personal computer produced in China for $ 2,800. What is the effect on the components of GDP and GDP
    5·1 answer
  • The price elasticity of demand (based on the midpoint formula) when price increases from $10 to $12 is:______
    8·1 answer
  • Financial markets:____________.
    8·1 answer
  • The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage i
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!