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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

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Answer:

b. contains no positive statements.

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At&t, verizon, and t-mobile serve more than 95 percent of the subscribers in the u.s. wireless mobile phone market. which fo
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The market for smartphones is it expanding?

Since 2008, the smartphone market has been continuously expanding and increasing in size as well as in terms of the variety of models and providers. In 2022, it is anticipated that there will be 1.43 billion smartphones shipped globally. 78.05% of people on the planet will have smartphones by the year 2020.

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8 0
1 year ago
During the​ year, Sheldon Company had net credit sales of $ 47 comma 000. At the end of the​ year, before adjusting​ entries, th
Maru [420]

Answer:

The balance of allowance for doubtful accounts is $ 1,880

Explanation:

Computation of balance in Allowance for Bad Debts

Total credit sales                                             $ 47 comma 000

Estimated bad debts as a % of sales                     4 %

Balance of Allowance for Doubtful accounts      $ 1,880

The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.

4 0
3 years ago
risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have lon
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Answer:

Price Risk, Reinvestment Risk, Investment Horizon and Longer maturity Bond.

Explanation:

  • Price risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
  • Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
  • Which type of risk is more relevant to an investor depends on the investor's investment horizon, which is the period of time an investor plans to hold a particular investment.
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8 0
3 years ago
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Galina-37 [17]

Answer:

The correct answer is D

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