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
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

You might be interested in
A coal mine cost $ 1 comma 001 comma 000and is estimated to hold 57 comma 000tons of coal. There is no residual value. During th
lorasvet [3.4K]

Answer:

Depletion expenses for the first year is $210736.840

Explanation:

Depletion expenses= (Cost of coal mine - residual value) / Total tons of coal * tons extracted

=(1,001,000 - $0) / 57,000 tons * 12,000 tons

=$210736.8421

=$210736.840

6 0
2 years ago
Janine is an accountant who makes $30,000 a year. Robert is a college student who makes$8,000 a year. All other things equal, wh
Bingel [31]

Answer:

Janine is an accountant who makes $30,000 a year. Robert is a college student who makes$8,000 a year. All other things equal, who is more likely to stand in a long line to get a cheap concert ticket?

Robert; his opportunity cost is lower

Explanation:

Robert has loss of potential gain from the alternative available, his low income will made him to queue in order to get the concert ticket

5 0
3 years ago
To ensure that work gets done, Jonah engages in initiating structure by assigning tasks to members of his department, creating s
pashok25 [27]
The answer is motivating everyone to do a good job by promoting organizational goals
6 0
2 years ago
The most helpful kind of business and why?
agasfer [191]

Answer:

Hair Salon

Explanation:

An hair salon is the most helpful kind of bussiness besides chothing store's because your helping people with their hair and geting a lot of money from doing a curtain style.

5 0
2 years ago
What is the most money you get in a job?
Veronika [31]

Answer:

it depends on the job but it is a Anesthesiologists

8 0
3 years ago
Read 2 more answers
Other questions:
  • Select the biased observational statement.
    6·2 answers
  • Would you recommend that Apple raise or lower its price for the iWatch to increase​ revenue?
    6·1 answer
  • One test of evidence is "does the evidence come from unbiased sources?"
    6·1 answer
  • Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded
    14·1 answer
  • A roulette wheel in a casino has 38 slots. If you bet a dollar on a particular​ number, you'll win ​$30 if the ball ends up in t
    13·1 answer
  • Gloria Rose works at College of Austin and is paid $ 30 per hour for a​ 40-hour workweek and​ time-and-a-half for hours above 40
    7·1 answer
  • Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with can
    14·1 answer
  • Is debtors control a current asset, owners equity, income or current liability
    5·1 answer
  • Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costi
    6·1 answer
  • A publisher reports that 64% of their readers own a laptop. A marketing executive wants to test the claim that the percentage is
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!