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Sergeu [11.5K]
3 years ago
8

BlackHawk anticipates paying a dividend of $4.25 next year and is expected to grow the dividend at a constant rate of 7% per yea

r, indefinitely. If the required rate of return by shares holders is 13%, then, according to the Gordon Model, what should the price of the stock be today
Business
1 answer:
siniylev [52]3 years ago
4 0

Answer:

$70.83

Explanation:

The Gordon Growth model (or the dividend discount model) provides a simple formula for calculating the intrinsic price of stocks:

price of stocks = dividend / (required rate of return - growth rate)

price of stocks = $4.25 / (13% - 7%) = $4.25 / 6% = $70.83

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Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 unit
Naddika [18.5K]

Answer:

<em>The answer is 1645 or</em>

<em>Firm X        95+120        =215</em>

<em> Firm Y      450+ 800    =1250</em>

<em> Firm Z       80 + 100     = 180 </em>

<em>  Total                            = 1645</em>

Explanation

<em>From the question given, </em>

<em>The first to take is to Complete the following table with the total cost to each firm in reducing its pollution by 2 units.</em>

<em>                                     Cost of Eliminating/Elimination</em>

<em>            First unit of pollution second unit of pollution    Third unit of pollution</em>

<em>Firm               (dollars)                    (dollars)                               (dollars)</em>

<em>Firm X                95                            120                                    200</em>

<em>Firm Y              450                            800                                   1050</em>

<em>Firm Z                80                             100                                     150</em>

<em />

<em>Now the total cost to eliminate  2 units is</em>

<em> Firm X     95+120         =215</em>

<em> Firm Y      450+ 800    =1250</em>

<em> Firm Z       80 + 100     =  180 </em>

<em>  Total                            = 1645</em>

8 0
3 years ago
How would a strong U.S. dollar impact the trade of grain produced in the United States?
ira [324]
When a country has a strong currency, generally its export decreases - this is the answer to the first question.

Imagine, a tone of rice costs 100 dollars, that is 100 pounds. With a strong dollar, it's 120 pounds now - the British will be able to afford less of US rice now!
About the second question - I think that if neither has an absolute advantage, this also likely means that neither has more natural resources.

now, country A exports milk to country B, which means that it's cheaper to produce milk in the country A. Therefore, the answer "<span>The opportunity cost of producing milk is lower for Country A" is correct.</span>


6 0
3 years ago
Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)=  3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)=  6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)=  1/10 =0.1

b)

x                  0               1                    2

p(x)            0.3           0.6                0.1

​

​μ  X  =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ  X ² =(0−0.8)²  ⋅0.3+(1−0.8)²  ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX  =0.6

 

​

5 0
3 years ago
When a firm goes bankrupt, shareholders ______. Multiple choice question. can sue for loses cannot recover their risk capital ar
TEA [102]

In a case whereby a firm goes bankrupt, shareholders cannot recover their risk capital.

This is because they have loose alot in the investment.

<h3>What is Bankruptcy?</h3>

Bankruptcy  can be explained as legal process in which an organization that cannot repay debts to creditors may seek relief debts.

Learn more about Bankruptcy at;

brainly.com/question/21283135

4 0
2 years ago
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the lo
VikaD [51]

Answer:

Nominal;nominal;real;the quantity theory.

Explanation:

Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run.

For example, an increase in the money supply, a nominal variable, will cause the price level, a nominal variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a real variable. The distinction between real variables and nominal variables is known as the quantity theory.

5 0
4 years ago
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