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Tomtit [17]
3 years ago
10

Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year. She also expects the stock to sell for $

46 a share one year from now. What is the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%
Business
1 answer:
lesya692 [45]3 years ago
8 0

Answer: $42.63

Explanation:

To calculate this we will add the present value of Future cash flows (dividends) to the present value of the stock.

Dividend per share one year from now is,

= 238/100

= $2.38

Stock Price a year from now = $46

Discount rate is $13.5%

PV of sum = 2.38/(1+0.135) + 46/ (1 + 0.135)

= 42.6255506608

= 42.63

$42.63 is the Intrinsic value of the stock.

If you need any clarification do react or comment.

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Answer:

$14,300

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Based on the information given we were told that the​ management of the company estimated that the amount in the uncollectible accounts will be the amount of $14,300 which means that the amount of $14,300 will be the balance of the Allowance for Bad Debts that should be reported on the company balance​ sheet.

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Your brother announces at Thanksgiving Dinner that he is thinking of becoming a day trader. What questions might you ask him to
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1) Has he diversified his portfolio within the 11 sectors?

2) Does he go for capital appreciation stocks or dividend stocks?

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4 0
3 years ago
Mega Mart is a part of a business unit that has grown very slowly over the years. According to your local business newspaper, th
arlik [135]
The right answer for the question that is being asked and shown above is that: • • Mega Mart is a “dog.” A business unit is considered a dog is when the market growth rate is low and the relative market share is also low. 

Business unit that has grown very slowly.
They have a very low share.<span>
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8 0
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On May 1, 20X2, Bolt Corp. issued 11% bonds in the face amount of $1,000,000 that mature on May 1, 20X12. The bonds were issued
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