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Lorico [155]
3 years ago
15

An issue of common stock has just paid a dividend of $2.00. Its growth rate is equal to 4%. If the required rate of return is 7%

, what is its current price
Business
1 answer:
Semenov [28]3 years ago
5 0

Answer:

The answer is $69.33

Explanation:

The formula to solve this is:

P = D1/r - g

P is the Curren price of the common stock

D1 is the future dividend payment

r is the rate of return

g is the growth rate

D1 is $2 x 1.04 = $2.08

r = 7% or 0.07

g= 4% or 0.04

2.08/0.07-0.04

2.08/0.03

=$69.33.

Therefore, the current share price of the common stock is $69.33

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If A sells to B, and B obtains title while goods are in transit, the goods were shipped .If C sells to D, and C maintains title
astraxan [27]

Answer:

The answer is a. Free on Board (FOB) shipping point, Free on Board (FOB) destination.

Explanation:

In the case of A to B, the goods were shipped at FOB shipping point because the title passes to B while the goods are in transit. FOB shipping point means that the seller of a goods passes the title to the buyer at the point where the goods are being delivered to the designated carrier of the buyer.

In FOB shipping point, once the goods have transferred to the carrier to convey to the buyer, the buyer obtains title immediately not minding that the goods are yet to arrive at the buyer`s door. In addition, any risk of damage or loss of goods in transit are solely borne by the buyer because title has passed immediately seller transfers the goods to the carrier designated by the buyer.  This is true in A to B case because B obtains title while goods are in transit. So the goods were shipped at FOB shipping point.

For C to D, the goods were shipped at FOB destination because buyer obtains title only when the goods arrive at his/her door. Conversely yo FOB shipping point, the risk of damage and loss of goods in transit is entirely borne by the seller because the title has not passed to the buyer until the goods arrive at the buyer`s door.

4 0
4 years ago
BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the ________ dimensi
Fantom [35]

Answer:

The correct answer is sensory.

Explanation:

Sensory marketing is widely used and also highly recommended for those companies that want to be exclusive, original and convey a different and positive customer experience. Its objective is that the client leaves satisfied and with a good memory that is not easily erased from his memory.

As human beings we are endowed with five senses, six if as some do we have intuition. Next we will see how marketing plays with us through our senses:

7 0
3 years ago
Use demand and supply diagrams (with proper labels and arrows) to show the effect of
Arte-miy333 [17]

Answer:

Please check the attached images for the graphs

Explanation:

a.DVD players and DVDs are complements

Complement goods are goods that can be used together. If the price of one Dvd payers falls, the demand for DVDs would increase. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

b. As a result of the report, the demand for chocolate candy bars increases. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

c. As a result of the policies, the demand for cigarettes would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.

d. As a result of the automation, there would be less need for unskilled labour. As a result, the demand for unskilled labour would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.

e. increase in interest rate increases the demand for bonds. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

f. as a result of the flooding, there would be a reduction in supply. The supply curve would shift leftward. Equilibrium price would rise and equilibrium quantity would fall

5 0
4 years ago
A portfolio with a 20% standard deviation generated a return of 10% last year when T-bills were paying 5.0%. This portfolio had
Maslowich

Answer:

0.25

Explanation:

A portfolio has a standard deviation of 20%

The portfolio also generated a return of 10%

T-bills were paying 5%

Therefore, Sharpe ratio of the portfolio can be calculated as follows

Sharpe ratio= 10-5.0/20

= 5/20

= 0.25

Hence the Sharpe ratio of the portfolio is 0.25

6 0
3 years ago
The human population grew from 1 billion in the year 1800 to _____ billion in the year 2000.
Orlov [11]
<span>The human population grew from 1 billion in the year 1800 to 6 billion in the year 2000. People are living longer than they ever have with newer medical practices. Families are also having more children.</span>
5 0
3 years ago
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