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
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

You might be interested in
At a growth (interest) rate of 8 percent annually, how long will it take for a sum to double? To triple? Use Appendix A for an a
Yanka [14]

Answer:

n =   ㏒ P ÷ ㏒ (1.08)

Explanation:

Compound interest rate

A = P × (1 + r)^{n}

where

P = principal amount (the initial amount you borrow or deposit)

r  = annual rate of interest (as a decimal)

A = amount of money accumulated after n years, including interest.

n  =  number of years

Since we want the principle amount to double i.e., A = 2P

put this in above equation

2P = P × (1 + r)^{n}

divide both sides by P, we get

P = (1 + r)^{n}

put r = 0.08

P = (1 + 0.08)^{n}

P = (1 .08)^{n}

Taking log on both sides

㏒ P =㏒ (1 .08)^{n}

㏒ P = n ㏒ (1.08)

n =   ㏒ P ÷ ㏒ (1.08)

8 0
3 years ago
Jeffrey Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per uni
Whitepunk [10]

Answer:

The incremental revenue of the proposed change = $ 50,000

8 0
3 years ago
Read 2 more answers
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. T
Dmitry_Shevchenko [17]

Answer:

Explanation:

A common sized income statement is a method of financial statement that express every line item on a financial statement as a percentage of sale for the ease of financial analysis

                             Tannenhill's              %        Industry average

Revenue               2,480,000             100                  100%

Cost of Goods      1,587,200                64                    70

Gross profit           892,800                  36                  30

Selling expenses    545600                 22                    17

Admin expenses     198400                  8                       7

Total ope. Expe.       744000                30                    24

Ope. Income             148600                 6                      6

Other Revenue          49600                  2                      2

                                   198400                 8                      8

Other Expenses         24800                  1                        1

PBIT                             173600                7                       7

Income Tax                  74400                 3                       5

Net Income                  99200                4                       2

7 0
3 years ago
Partially completed units in ending work in process are 100 percent complete with regard to their direct materials costs if the
Rudik [331]

Answer:

TRUE

Explanation:

As the direct materials are introduced at the beginning of the process the only factors which are not completed are the conversion cost which are: labor cost and manufacturing overhead.

The equivalent units will be calculated using a 100% of completion in raw materials.

5 0
3 years ago
A new Accenture client is looking for a platform that will help them in hiring for critical roles and decreasing attrition. Whic
Leto [7]

Answer:

SynOps

Explanation:

The Accenture SynOps client may be described as a tools which leverages the combined capability of humans and machines by taking advantage of insights generated from data in an Artifical intelligent powered programs in other or deliver on smart and intelligent Decisons. The collaborative effort or humans, in this case human resource professionals and Artifical intelligence which has been developed within the SynOps Accenture client, will enable the client to make intelligent calls or Decisons from data made available to ensure that the best candidates are selected.

3 0
3 years ago
Other questions:
  • The following transactions apply to Jova Company for Year 1, the first year of operation:
    6·1 answer
  • Which of these expressions should an american businessperson avoid in a meeting with foreign business representatives?
    11·1 answer
  • What two conditions must producers meet for there to be supply of a product?
    15·1 answer
  • Labracorp is looking to hire an unknown number of workers. jim wants to be one of those workers. what information would labracor
    7·2 answers
  • Personal values and work values cannot be related.<br> True or false?<br><br> Ill brainly
    13·2 answers
  • At the end of Year 2, retained earnings for the Baker Company was $3,050. Revenue earned by the company in Year 2 was $3,300, ex
    11·1 answer
  • 5. For the following observations, calculate the class width for a histogram.
    13·1 answer
  • The ABS company has a capital base of $270 million, an opportunity cost of capital (k) of 19%, a return on assets (ROA) of 9%, a
    8·1 answer
  • in the absence of trade, the domestic price of soybeans is pn. if the world price of soybeans is pw, which of the following will
    8·1 answer
  • How does the organization of the Federal Reserver System Help it perform its functions?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!