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andre [41]
3 years ago
11

Zephyr Electricals is a company with no growth potential. Its last dividend payment was $4.50, and it expects no change in futur

e dividends. What is the current price of the company’s stock given a discount rate of 9 percent?
Business
1 answer:
VARVARA [1.3K]3 years ago
6 0

Answer: $50

Explanation:

We can use the Gordon Growth Model of Stock Valuation. The formula is thus,

P = D1 / r – g

D1 = the annual expected dividend of the next year

r = rate of return

g = the expected dividend growth rate (assumed to be constant)

There is no growth potential and dividends are expected to stay the same so no growth rate and D1 will be the same as D0.

Plugging that into the formula therefore will give us

P = D1/r

P= 4.5/0.09

= $50

Current Stock Price is $50.

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Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to:_____
andrew-mc [135]

Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to a temporary increase in the growth rate.

In the Solow model, a larger saving rate has no long-term impact on the growth rate. Higher steady-state capital stock and level of output do follow a higher saving rate. The growth rate briefly increases as production changes from a lower to a higher steady-state level. Low rates of saving the result in small capital stock in the steady state and low levels of output in the steady state. Only in the near run do higher savings translate into quicker economic development. Up until the economy reaches its new steady state, an increase in the saving rate causes growth to accelerate.

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7 0
1 year ago
PLEASE ANSWER QUICKLY
Paha777 [63]

Answer:

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standards for the basic minimum wage and overtime pay

Explanation:

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3 years ago
What are the three most important questions you should ask candidates during the interview process? Why are these important ques
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1 year ago
Details of the division of partnership income should normally be disclosed in the financial statements.a. Trueb. False
Strike441 [17]

Answer:

a. True

Explanation:

A partnership is a form of business that is owned by 2 or more people through signing of a partnership agreement. Each person is responsible for all the decisions made in the partnership and they share the net income. Details of how the net income is distributed is mentioned in the Partnership income statement. It will be divided equally among the partners as mentioned in the partnership agreement.

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n the Cash Now lottery game there are 10 finalists who submitted entry tickets on time. From these 10 tickets, three grand prize
vaieri [72.5K]

Answer:

The total number of different ways in which the winners can be drawn is 720.

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