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Hitman42 [59]
3 years ago
10

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.10 a share. The company has promised to

maintain a constant dividend.
How much are you willing to pay for one share of this stock if you want to earn a return of 14.50 percent on your equity investments?

a) $1140 b) $21.38 c) $44 95 d) $1760
Business
1 answer:
Gre4nikov [31]3 years ago
6 0

Answer:

The maximum that one should be willing to pay for this stock today is $21.38

Explanation:

The constant dividend paying company is the one whose dividend growth remains zero or unchanged. The zero growth model of the DDM is used to calculate the price or value of stock today of such a stock. This kind of stock is just like a perpetuity as it pays a fixed amount after fixed intervals of time forever.

The formula for price of such a stock or zero growth model is:

Price = Dividend / r

Price = 3.1 / 0.145  

Price = $21.379 rounded off to $21.38

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Assuming a downward-sloping demand curve, a change in price, all held constant:a. May or may not result in a change in quantity
ziro4ka [17]

Answer:

d. Generates a change in quantity demanded.

Explanation:

Because in this case only the price is changing and all other factors are held constant the demand curve will not move and any movement that will take place will be along the demand curve. If the price increases the quantity demanded will decrease and if the price decreases the quantity demanded will increase, the reason for this is that the demand curve is downward sloping, therefore a price change will only change the quantity demanded.

7 0
3 years ago
The Accumulated Depreciation account is shown on the balance sheet as a liability. 1. is a contra asset account with a credit ba
inessss [21]

Answer:

Option 1 is correct because accumulated depreciation account is contra asset account and has a credit balance that is adjusted in the balance sheet. This accumlated depreciation is adjusted against the value of the asset when the asset is sold or disposed off.

Explanation:

Other options are incorrect because Accumulated depreciation is contra asset account and is credit in nature, not debit in nature. Furthermore, saying that accumulated depreciation account is contra revenue account which is also incorrect.

4 0
3 years ago
Read 2 more answers
Which of the following is true of open market operations? Select the correct answer below: Open market operations involves the b
zhenek [66]

Answer:

The option that says; "Open market operations involve the purchase and sale of government securities".

Explanation:

The term "open market operation" simply has to do with monetary policy. Open market operation is usually considered as a tool in economics and It is a commonly used by central banks of countries or federal reserves.

The main thing that happens in open market operation is that Government securities are being bought and sold that is the purchase and sale of government securities. The selling and buying of government securities is to make sure that there is reduction in the way money is been supplied.

3 0
3 years ago
Read 2 more answers
When is the only time to abbreviate on a job application? Question 3 options: In the Personal Information section In the Positio
Alexxandr [17]

Answer:

Availability Section

Explanation:

All the information in a job application needs to be very detailed and with little to no room for interpretation. This is because a job application is a one-time deal meaning you do not get to redo it once you turn it in. If the hiring manager does not understand something in the job application they will simply throw it away and pass on to the next application on the list, they will not waste time on it. Therefore, the only thing that can be abbreviated would be the Availability Section when dealing with days of the week. Instead of spelling out every day you can say any of the following...

Mon, Tue, Wed, Thu, Fri, Sat, Sun

Sat-Sun

Mon-Fri

8 0
2 years ago
Janice really likes potatoes. Potatoes cost $1 per pound, and she has $5.00 that she could possibly spend on potatoes or other i
fiasKO [112]

Answer:

A) Janice will purchase 3 pounds of potatoes since she will buy them until her consumer surplus ≤ 0. The fourth pound of potatoes costs $1, and Janice is willing to pay only $0.30, so her consumer surplus s negative (-$0.70).

Consumer surplus is the difference between the price that a customer is willing and able to pay for a good and the good actual price.

B) If Janice only had $2 to spend, she would buy 2 pounds of potatoes, since her consumer surplus is positive at 2 pounds.

first pound costs $1, and Janice is willing to pay $1.50, consumer surplus = $0.50

second pound costs $1, and Janice is willing to pay $1.14, consumer surplus = $0.14

3 0
3 years ago
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