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Nat2105 [25]
3 years ago
6

King Waterbeds has an annual cash dividend policy that raises the dividend each year by 44​%. The most recent​ dividend, Div 0Di

v0​, was $ 0.45$0.45 per share. What is the​ stock's price if a. an investor wants a return of 66​%? b. an investor wants a return of 88​%? c. an investor wants a return of 1111​%? d. an investor wants a return of 1212​%? e. an investor wants a return of 1919​%? a. What is the​ stock's price if an investor wants a return of 66​%?
Business
1 answer:
kati45 [8]3 years ago
8 0

Answer:

a.- r= 6% Value: 23.40

\frac{0.468}{0.06-0.04} = Intrinsic \: Value

b.- r = 8% Value: 11.70

\frac{0.468}{0.08-0.04} = Intrinsic \: Value

c.- r = 11% Value: 6.69

\frac{0.468}{0.11-0.04} = Intrinsic \: Value

d.- r = 12% Value: 5.85

\frac{0.468}{0.12-0.04} = Intrinsic \: Value

e.- r= 19% Value: 3.12

\frac{0.468}{0.19-0.04} = Intrinsic \: Value

Explanation:

We will calcualte the gordon model for the different rates of return:

\frac{divends_1}{return-growth} = Intrinsic \: Value

Dividend_1 is next year dividends.

If dividends raise by 4% then:

0.45 x 1.04% = 0.468

<u>now we calculate for the different returns:</u>

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Whitepunk [10]

Answer: 6.51%

Explanation:

To get the interest rate at which the deal will be fair

Annual payment per year/ cost × 100

Perpetuity = D/r

476000 = 31000/r

r = 31000÷ 476000

r = 0.06512

r = 0.06512 × 100

r = 6.512%

Where D is the dividend

r is the rate

3 0
3 years ago
Based on the following information, what is the balance on the financial account? Exports of goods and services = $5 billion Imp
Olegator [25]

Answer:

3 billion

Explanation:

the financial account will be the cash inflow less the cash outflow:

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4 billion of dollar enter the US from aboard while 1 billion left the country with destination aboard in total the financial account will be:

4 billion - 1 billion = 3 billion

4 0
4 years ago
A movie theater manager asks an employee, "Should we distribute tickets to the movie on a first-come-first-served basis or throu
mixer [17]

Answer:

For whom to produce.

Explanation:

This fundamental question tends to answer the sector of the customers the company will produce for. It reflects the customer's buying power and willingness.

  • For example, If the customer we are producing has enough money, so we should go for first come first served basis, OR, If the customer lacks money and it hinders the customer to watch a movie so we motivate them to participate in a lottery so are in guise targeting that section as well.
4 0
3 years ago
1. In what way do organization charts create a picture of an<br> organization?
Allushta [10]

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In a structural way

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the chart is the diagram that shows how the power flows through the company as it indicates the levels of hierarchy within.

5 0
3 years ago
A firm has current liabilities of $500, a current ratio of 1.5, and a quick ratio of 1.1. calculate the level of inventory for t
SCORPION-xisa [38]

The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.


To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

CA = $500 (1.5) = $750


Then get the inventory level by multiplying the current asset to the product of the current liabilities and quick ratio.

Inventory level = $750 (500 x 1.1) = $412,500

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3 years ago
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