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DochEvi [55]
3 years ago
6

Future Motors is expected to pay a $3.30 a share annual dividend next year. Dividends are expected to increase by 2.75 percent a

nnually. What is one share of this stock worth to you today if your required rate of return is 15 percent?
Business
1 answer:
sveta [45]3 years ago
3 0

Answer:

$26.94

Explanation:

We know,

Current stock price = P0 = \frac{D1}{ks - g}

Given,

expected dividend = $3.30

Growth rate, g = 2.75% = 0.0275

Required rate of return, ks = 0.15

Putting the values into the formula, we can get

Current stock price, P0 = \frac{3.30}{0.15 - 0.0275}

Or, Current stock price, P0 = \frac{3.30}{0.1225}

Therefore, Current stock price, P0 = $26.94

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What is Nick causing? Nick has set up his steel factory near a community lake. The waste from his factory is directly thrown in
gregori [183]
<span>Nick is causing pollution specifically water pollution. Since he is contaminating the community lake. This kind of environmental deprivation happens when pollutants are straight or meanderingly discharged into water forms lacking passable treatment to eliminate harmful composites. This can damage the animals existing by the lake, and the people breathing the air.</span>
3 0
3 years ago
Read 2 more answers
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
Alisiya [41]

Answer:

C. $17,500

Explanation:

1,300 / 200 = 6.5

we are going to hire between 6 and 7 welder as we are given the requirement <u>"for every 200 hours or fewer in a month"</u> we should round above and not below: 7 welder. Besides, we cannot hire "half" or "quarter" of an employee therefore we have to move between integer solutions.

7 0
2 years ago
Ortega Industries manufactures 19,900 components per year. The manufacturing cost of the components was determined to be as foll
professor190 [17]

Answer: Increased profit as opposed to making them internally.

Explanation:

Make or buy decisions are management decisions as to whether production components should be produced internally or outsourced.

Buy decision

Unit price= $34

Total unites= 19900

Total cost= $34*19900=$676,600

Make decision

$

Direct materials 178,000

Direct Labor. 380,000

Variable overhead. 104,000

Relevant fixed overhead 260,000

Total $922,000

Unit price for make=922000/19900

Unit price=$46.33

Since buying outside is more cheaper than producing internally, it will be more profitable to outsource(buy).

6 0
3 years ago
In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 perce
LiRa [457]

The nominal interest rate will rise by 3%.

Nominal interest rate is the sum of real interest rate and inflation rate. Real interest rate is interest rate that has been adjusted for inflation. Inflation is the persistent rise in general price levels.

Nominal interest rate in year 2 = real interest rate + inflation rate

6% + 3% = 9%

Nominal interest rate in year 1 = 6%

Change in nominal interest rate = 9% - 6% = 3%

To learn more, please check: brainly.com/question/21323568

6 0
2 years ago
5. An investor is interested in purchasing a 30-year U.S. government bond carrying an 8 percent coupon rate. The bond’s current
ella [17]

Answer:

Holding period yield is 114.97%

effective yield is 8.72%

Explanation:

holding period yield=(Price at call-initial price+coupon payments)/initial price

                                =($970-$935)+(13*$80)/$935

                                 =($35+$1040 )/$935

                                 =$1075/$935

                                  =114.97%

The effective yield is the yield to call which can be computed using the excel rate formula:

=rate(nper,pmt,-pv,fv)

nper is the number of payments before the call which is 13

pmt is the periodic payment by bond which is $1000*8%=$80

pv is the current market price of $935

fv is the bond price at end of 13 years at $970

=rate(13,80,-935,970)

rate=8.72%

5 0
3 years ago
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