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
Dafna11 [192]
3 years ago
7

A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate, g, is 4.0%.

According to the dividend discount model, the current stock price is closest to:A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate, g, is 4.0%. According to the dividend discount model, the current stock price is closest to:
Business
1 answer:
lions [1.4K]3 years ago
8 0

Answer:

Current Stock Price Is $25.57

Explanation:

According to the scenario, computation of the given data are as follows:-  

Dividend (D0) = $1.50

Required rate of return(R) = 10.1 = 0.101  

Growth rate(G) = 4.0% = 0.04

D1 = D0 (1 + G)

= $1.50 × (1+0.04) = $1.50 × 1.04

= $1.56

Current Stock Price (P0) = D1 ÷ (R-G)

= $1.56 ÷ ( 0.101 -0.04)

= $1.56 ÷ 0.061

= $25.57

Current Stock Price Is $25.57

You might be interested in
Pricing objectives should be stated explicitly, stated in measurable terms, and specify a?
Delvig [45]

Pricing objectives should be stated explicitly, stated in measurable terms, and specify they have a direct effect on pricing policies as well as price setting methods.

The pricing techniques are developing, skimming, and following. develop: putting a low price, leaving a maximum of the fee in the palms of your clients, shutting off margin out of your competition.

A pricing policy is an organization's method of determining the fee at which it offers a good or provider to the market. Pricing guidelines assist organizations to ensure they continue to be profitable and supply them with the ability to price separate products otherwise. A business enterprise gives up instantaneous earnings in trade for accomplishing a higher market proportion. merchandise is priced low. Pricing objective: Maximising current profit. objectives may be set and overall performance measured speedy.

Disclaimer: your question is incomplete, please see below for complete question

A. they have a direct effect on pricing policies as well as price setting methods.

B. they are signals given to competing firms.

C. they form the basis of shareholder expectations about a firm's prospects.

D. it is required by law.

E. they are signals given to consumers.

Hence, the answer is option A.

Learn more about Pricing objectives here:-brainly.com/question/20927491

#SPJ4

8 0
1 year ago
A measure of social class that is based on income, wealth, prestige and power is called? a. socioeconomic status. b. esteem. c.
tekilochka [14]

A measure of social class that is based on income, wealth, prestige and power is called socioeconomic status.

What is Socioeconomic Status?

A person's socioeconomic status is a combined economic and sociological assessment of their level of education, employment history, access to resources, and standing in society.

Therefore,

A measure of social class that is based on income, wealth, prestige and power is called socioeconomic status.

To learn more about socioeconomic status from the given link:

brainly.com/question/8625928

5 0
1 year ago
A company is concerned about the number of customers that have to wait for service in their customer service department. Assume
uysha [10]

Answer:

E) None of these

Explanation:

Calculation to determine which of the following is the mean time between arrivals

Using this formula

Mean time between arrivals = 1/Arrival rate

Let plug in the formula

Mean time between arrivals= 1/12

Mean time between arrivals= 0.0833 hours or 5 minutes

Therefore the Mean time between arrivals will be 0.0833 hours or 5 minutes

4 0
3 years ago
Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
fgiga [73]

Answer:

Partners Dennis and Lilly have decided to liquidate their business. The following information is available:

Cash $100,000 Accounts Payable $100,000

Inventory $200,000 Dennis, Capital $120,000

Lilly, Capital $80,000

$300,000 $300,000

Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month.

1. Using a safe payments schedule, how much cash will be distributed to Dennis at the end of the first month?

a. $36,000

b. $64,000

c. $60,000

d. $24,000

2. Using a safe payments schedule, how much cash will be distributed to Lilly at the end of the first month?

a. $40,000

b. $24,000

c. $64,000

d. $16,000

4 0
3 years ago
A cash-strapped young professional offers to buy your car with four, equal annual payments of $3,000, beginning 2 years from tod
kiruha [24]

Answer:

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

Explanation:

We need to first calculate what is the future value of payments in both scenarios. If we receive $9,000 today and invest it at 10% for 6 years we will have 9000*1.10^6=15,944

If we start reviving cash in 4 annual payments 2 years from now of $3000 we will have to find the future value of each individual payment and add them up.

First payment Future value = 3000*1.10^4=4392 (Money can be invested for 4 years at 10%)

Second payment future value = 3000*1.10^3=3993 (Money can be invested for 3 years at 10%)

Third payment future value = 3000*1.10^2=3630 (Money can be invested for 4 years at 10%)

Fourth payment future value = 3000*1.1=3300

Add them all up = 15315

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

5 0
3 years ago
Other questions:
  • In business, failure usually means what? A. The market wasn't saturated enough. B. The company was unethical. C. The customers h
    14·2 answers
  • 6. Bronco Co. is a U.S.-based MNC that has subsidiaries in Spain and Germany. Both subsidiaries frequently remit their earnings
    11·1 answer
  • What is profit?
    14·1 answer
  • Individuals and organizations can give an unlimited amount of money to
    8·1 answer
  • Areas of poorly maintained housing in cities are known as A. apartments. B. high rises. C. slums. D. projects.
    13·2 answers
  • Ted owns a small florist shop. Since his business is booming, his realizes he will soon need one more delivery van. He decides h
    6·1 answer
  • Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate Number
    11·1 answer
  • A farmer believes that his new irrigation method would result in more crop yield than the old one. To test his theory, he applie
    8·2 answers
  • Sheila has recently been promoted to a senior position in the HR department of a multinational company. According to her new job
    9·1 answer
  • 6 years ago paid 490,000 using 40 year straight line depreciation, what is the value
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!