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Anettt [7]
3 years ago
8

TMS just paid an annual dividend of $2.84 per share on its stock. The dividends are expected to grow at a constant rate of 1.85

percent per year. If investors require a rate of return of 10.4 percent, what will be the stock price be in Year 11
Business
1 answer:
bija089 [108]3 years ago
5 0

Answer:

$41.39

Explanation:

Data provided in the question:

Annul Dividend paid, D0 = $2.84 per share

Growth rate, g = 1.85% = 0.0185

Rate of return required, r = 10.4% = 0.104

Now,

Current price of the stock at year 11 = D12 ÷ [ r - g]

= [ $2.84 × (1 + g)¹²] ÷ [ r - g]

=  [ $2.84 × (1 + 0.0185)¹²] ÷ [ 0.104 - 0.0185]

= 3.539 ÷ 0.0855

= $41.39

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Suppose Lisa starts driving for Uber as a part-time job to supplement her income as a home-based web designer. When working as a
abruzzese [7]

Answer:

$12.5(at least) would be needed to induce Lisa for driving Uber instead of working on web designing.

Explanation:

Lisa makes $25 per job on web designing from her home and in the first hour she can complete 2 additional jobs. But as per the question by the eight hour she can only do .5 jobs which means that for the eight hour she would earn -

                        .5 x $25 = $12.5 ( per job she gets $25)

So if Lisa goes on doing work as uber driver she is going to loose $12.5 in the eight hour , so we can say that if Lisa is offered $12.5 hourly rate to work as cab driver then she is not going to miss out on the money she would have made as web designer from home.

3 0
3 years ago
Men who tried the Gillette Fusion razor were so satisfied with it that 60 percent of them adopted the product permanently. Men w
Reptile [31]

Answer: Repeat

Explanation:

 When the customers are adopting the product permanently and use in their daily life routine then, they known as the repeat purchasers. The repeat purchaser basically purchase the products very frequently.

The process of repeat purchasing basically indicate that the customer loyalty towards the particular brand and it maintain the customer relationship.

Therefore, if more than 60% of men purchasing the product Gillette fusion razor then they known as the repeat purchaser as they adopted the given product permanently.

6 0
3 years ago
On January 15, Walton Company sold merchandise on account for $3,000 with terms 3/10, n/30. On January 20, the customer returns
Margaret [11]

Answer:

The amount received in cash is $2,328

Explanation:

The amount which is received in cash is computed as:

On January 20, the amount of $600 goods returns from customer, so the remaining balance is

= $3,000 - $600

= $2,400

On the remaining balance, the discount which is evaluated as the payment is received within the discount period which is January 25. So,

= $2,400 x  (100% - 3%)

= $ 2,400 x  97%

= $ 2,328

7 0
3 years ago
What was a part of the emerging social, political, and economic philosophies that characterized the first hundred days of Frankl
Anastaziya [24]

Answer:

"Try something and if it doesn't work, admit it and try something else."

Explanation:

When I took US Government, my teacher always emphasized that FDR was probably the best American President, and things like this really show why he admired him so much. Can you imagine those words coming out of the mouth of a modern politician?

Many people like to compare President Obama's first term with FDR's first term, but I believe that Obama had it easier. Not because the recession wasn't bad, but because it was fresh and new. President Bush's handling of the crisis was disastrous, but they messed up only for about one year. When FDR took office, the depression had been around for several years, so the negative effects were much greater.

When FDR took office the country was ravaged and nobody was sure that the new policies would work or not, or even what policies they should have implemented. That is why they engaged in a trial and error type of strategy where several options were explored to try to see what could work and what couldn't.

8 0
3 years ago
DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a s
labwork [276]

Answer:

Correct option is B.

$278,000

Explanation:

Common Fixed Expenses = Office Administrative Assistant + Office Administrative Assistant + President's Salary

Common Fixed Expenses = $61,750 + $46,750 + $169,500

Common Fixed Expenses = $278,000

3 0
3 years ago
Read 2 more answers
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