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GarryVolchara [31]
3 years ago
11

Assume that you plan to buy a share of EMA stock today and to hold it for 3 years. You expect to receive a dividend of $3.00 at

the end of Year 1, $3.50 at the end of Year 2, and a dividend of $4.0 at the end of Year 3. In addition, you expect to sell the stock for $75 at the end of Year 3.
If your expected rate of return is 10%, how much should you be willing to pay for this stock today?
Business
1 answer:
Vesnalui [34]3 years ago
4 0

Answer:

$67.5

Explanation:

Expected rate of return = 10/100 x $75 = $7.5

I am willing to pay $75 - $7.5 = $67.5

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The Federal Reserve System performs many functions, but its most important one is
oksian1 [2.3K]

Answer:

b. controlling the money supply.

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2 years ago
On January 1, 2009, a U.S. firm made an investment in Germany that will generate $5 million annually in depreciation, converted
Afina-wow [57]

Answer:

The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.

Explanation:

It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.

Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.

To calculate the real value of the dollar at an inflation of 5% yearly in 2013

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= $2,500,000 * 0.78356

= $1,958,815.416

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3 years ago
A business that collects sales tax must pay the tax quarterly.<br> True<br> False
svp [43]

Answer:

True

Explanation:

3 0
2 years ago
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