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Sedbober [7]
3 years ago
6

This morning you purchased a stock that just paid an annual dividend of $3.10 per share. You require a return of 9.2 percent and

the dividend will increase at an annual growth rate of 4 percent. If you sell this stock in three years, what will your capital gain be?
Business
1 answer:
sergiy2304 [10]3 years ago
6 0

Answer:

$2.48

Explanation:

This morining a stock was purchased.

The stock just paid an annual dividend of $3.10 per share

A return of 9.2% is required

= 9.2/100

= 0.092

The growth rate is 4%

= 4/100

= 0.04

The first step is to calculate today's price

= D1/(r-g)

=3.10× 1+0.04/0.092-0.04

= 3.10×1.04/0.092-0.04

= 3.224/0.052

= $62

The price at the end of year 3 can be calculated as follows

= today's price × (1+g)

= 62×(1+0.04)

= 62×1.04

= $64.48

Therefore, the capital gain can be calculated as follows

Price at the end of year 3-today's price

= $64.48-$62

= $2.48

Hence the capital gain is $2.48

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Answer:

measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.

Explanation:

According to my research on financial accounting terms, the term liability is defined as the state of being legally responsible for something (dept such as auto or student loans). When a liability is first recorded it is measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. Basically calculating the amount of future payments that need to be made by the dept owner.

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3 years ago
A market ______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. multip
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A product growth strategy increases sales looking all the prospects of the department rather than focus on only one department of the firm. It develops the firms production process in all aspects.

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8 0
1 year ago
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yiel
kiruha [24]

Answer:

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Explanation:

Given:

Bond's par value (FV) = $1,000

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Price of bond (PV) = $875

Calculate coupon payment (pmt) using spreadsheet function =pmt(rate,nper,-PV,FV)

PV is negative as it's a cash outflow.

So semi- annual coupon payment is $39.20

Annual coupon payment = 39.2×2 = $78.40

Nominal Coupon rate = Annual coupon payment ÷ Par value

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3 years ago
A mission statement should include the following​ components: A. ​Customers, products/services,​ markets, and competitors B. ​Su
ivanzaharov [21]

Answer:

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Explanation:

A mission statement is an important factor which helps a company to attract customers and show them why their company is different and competitive. A mission statement should include a description of product and services, and it should depict the importance of customers. It should also include little information regarding the competitors. Mission statement is the first thing customers notice when they visit a website.

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A product that is in a high-growth market but has a low market share would be classified as a question mark on the Boston Consulting Group (BCG) matrix.

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4 0
3 years ago
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