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
lyudmila [28]
3 years ago
5

Schiller Corporation will pay a $2.78 per share dividend next year. The company pledges to increase its dividend by 4.5 percent

per year, indefinitely. If you require a return of 15 percent on your investment, how much will you pay for the company’s stock today?
Business
1 answer:
cupoosta [38]3 years ago
7 0

Answer:

The Market price for the stock will be 26.48 according to the gordon dividend grow model.

Explanation:

We will calculate the stock price, using the gordon model for the dividend grow model:

\frac{divends}{return-growth} = Intrinsic \: Value

D1 = 2.78

return = 15%

grow =    4.5%

\frac{2.78}{0.15-0.045} = Intrinsic \: Value

Stock market = 26,47619 = $26.48

You might be interested in
Kate contracts Ofc Depot Inc. to install air conditioning units for each office in her company. Kate wanted the work to be done
PtichkaEL [24]

The answer is, Ofc Depot is entitled to a partial recovery under the contract.

<h3>What is the meaning of immediate recovery?</h3>
  • The most frequent type of recovery, immediate or short-term, happens shortly after an exercise session or other activity.
  • Low-intensity activity after working out and during the cool-down period is part of short-term healing.

<h3>What is short term recovery?</h3>
  • Response and short-term healing occur simultaneously and are overlapping.
  • It entails undertaking tasks including restoring interrupted utility and other necessary services, reopening transportation routes, and offering food and shelter to individuals who were displaced by the catastrophe.

<h3>What are the 5 stages of recovery?</h3>
  • Precontemplation, contemplation, preparation, action, and maintenance are the five stages of addiction treatment.

Learn more about partial recovery here:

brainly.com/question/15340461

#SPJ4

7 0
2 years ago
If you have 1-year rate is 8%, 2-year rate is 9%, and 3-year rate is 10%. Assume that the pure expectations theory for the term
e-lub [12.9K]

Answer:

1 year rate 2 year from now = 12%  (Approx)

Explanation:

Given:

1-year rate = 8%

2-year rate = 9%

3-year rate = 10%

Computation:

According to Pure Expectations Hypothesis,

(1 + 3-year rate)³ = (1 + 2-year rate)² (1 + 1 year rate 2 year from now)

(1.10)³ = (1 + 1.09)²(1 + 1 year rate 2 year from now)

1.331 = 1.1881 (1 + 1 year rate 2 year from now)

(1 + 1 year rate 2 year from now)  = 1.12

1 year rate 2 year from now = 0.12

1 year rate 2 year from now = 12%  (Approx)

3 0
3 years ago
Tune Store reports inventory using the lower of cost and net realizable value (NRV). Information related to its year-end invento
Genrish500 [490]

Answer:

inventory impairment/cost of good sold (p/l)   $500

Explanation:

IAS 2 requires that inventory be initially recognized at cost including cost of purchase and other necessary cost incurred in getting the inventory to the location where it becomes available for sale.

Subsequently, the item of inventory is carried at the lower of cost or net realizable value (NRV).

              Quantity    Unit Cost     Unit NRV      Lower of cost/NRV  Amount

Model A    100               $100              $ 120       $100                       $10,000

Model B      50                $50               $ 40        $40                         $2,000

Model C      20                $200             $210        $200                      $4,000

Adjustment required = 50 ($50 - $40)

=$500

This posted as

Debit inventory impairment/cost of good sold (p/l)   $500

Credit Inventory account                                              $500

5 0
3 years ago
Bravo Industries intends to retire $950,000 in short-term debt using proceeds from the sale of 30,000 shares of common stock. Th
harina [27]

Answer:

the amount that should be excluded from the current liabilities is $750,000

Explanation:

The computation of the amount that should be excluded from the current liabilities is shown below;

= Number of shares in the common stock × selling price per share

= 30,000 shares × $25

= $750,000

Hence, the amount that should be excluded from the current liabilities is $750,000

7 0
3 years ago
What does our government do with tax money? How does government affect the business cycle? Income distribution?
Kazeer [188]
Government to invest in technology and education, and to provide goods and services for the benefit of the American people. The government affect the business cycle Use of fiscal policy increased government spending and/or tax cuts is the most common way of boosting aggregate demand, causing an economic expansion.
5 0
3 years ago
Other questions:
  • Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in t
    13·1 answer
  • A perfectly competitive industry exists under which of the following conditions? I. The product sold is similar across firms. II
    7·1 answer
  • Samantha Parks is the owner and CEO of Sparks, a small New York agency that develops advertising, promotions, and marketing mate
    6·1 answer
  • (Check your book for an explanation of double counting costs) Consider Diego’s decision to go to college. If he goes to college,
    11·1 answer
  • Tom is the quality control manager for the company XYZ. XYZ recently received some complaints about its product D's quality and
    6·1 answer
  • The shipment of products through the distribution channel to the customer is referred to as:
    15·1 answer
  • what is an example of an activity that would be considered a management function for an sec audit client?
    15·1 answer
  • Flextrola, Inc. , an electronics systems integrator, is planning to sell its next generation product using components sourced fr
    10·1 answer
  • Five years from today, you plan to invest $2,500 for 7 additional years at 8.4 percent compounded annually. How much will you ha
    9·1 answer
  • Which of the following describes possession utility?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!