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konstantin123 [22]
3 years ago
7

you expect it to pay a dividend of $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 i

n 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today
Business
1 answer:
Rus_ich [418]3 years ago
7 0

Answer:

$81.52

Explanation:

In this question, we are asked to state the price to pay for a stock at this present day.

To calculate this, we compute it mathematically.

Mathematically, we have;

dividend/(1+required return rate)^year

we then add together

we have

=3/(1.12) + 4.25/(1.12)^2 + 6/(1.12)^3 + 100/(1.12)^3 = 81.52

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Can someone buy me an iphone... i rlly need it (IT DOESNT MATTER WHICH KIND OF IPHONE !!!!!!!)
jok3333 [9.3K]

Answer:

I cant

Explanation:

IM A KID I WANT ONE TOOOOO!!!!

5 0
3 years ago
Read 2 more answers
Purchasing power parity does not hold in the short to medium run because:____.
maria [59]

Answer:

some goods aren't internationally traded

Explanation:

Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.

It is used to measure and compare prices at different locations.

The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.

8 0
3 years ago
A city's Enterprise Fund issued revenue bonds with a face value of $10,000,000. The bonds were issued with a 2% premium and the
Mrac [35]

Answer:

The correct answer is $9,850,000

Explanation:

The Enterprise fund which will be reported, total other financing sources of the amount is computed as:

= Face Value - Cost of issuance

where

Face Value is $10,000,000

Cost of issuance is $150,000

Putting the values above:

= $10,000,000 - $150,000

= $9,850,000

Note: Premium will not be considered as it is asked for when the bonds are issued.

5 0
4 years ago
According to Erik Erikson, in late adulthood, the individual reaches the eighth and final stage of the life span in which one re
Alex777 [14]

Answer:

integrity versus despair

Explanation:

integrity versus despair. In the integrity versus despair process, people reflect on the lives that they have been living and either have a feeling of fullness or a feeling of remorse and despair over the misperformance of their lives.

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4 0
3 years ago
The Jones Company plans to issue preferred stock with a perpetual annual dividend of $5 per share and a par value of $30. If the
Sever21 [200]

Answer:

c) $25

Explanation:

<em>The value of a preferred stock is the present value of the constant dividend payable for the foreseeable future discounted at the required rate of return</em>

Price = Constant dividend/ required return

The constant dividend = Dividend rate × par value

Dividend as be given as $5 per share

requited return - 20%

So the price of the stock would be

Price = 5/0.2

= $25

7 0
3 years ago
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