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
Vadim26 [7]
3 years ago
13

Tennessee Valley Antiques would like to issue new equity shares if its cost of equity declines to 12.5 percent. The company pays

a constant annual dividend of $2.10 per share. What does the market price of the stock need to be for the firm to issue the new shares?a.$15.10b. $15.60c. $18.40d. $17.90e. $16.80
Business
1 answer:
kap26 [50]3 years ago
3 0

Answer:

Stock price will be $16.8

So option (e) is the correct option

Explanation:

We have f=given expected dividend D_1=$2.10per\ share

Required return R_e=12.50%=0.125

Growth rate = 0 % = 0.00

We have to find the stock price p_0

Stock price is given by

p_0=\frac{D_1}{R_e-g}=\frac{2.10}{0.125-0.00}=$16.8

So stock price will be $16.8

So option (e) is the correct answer

You might be interested in
The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance. The follow
lisabon 2012 [21]

Answer:

correct option is b. $200,000

Explanation:

given data

Intercept = 40,000

Slope = 20

machine hours X = 8000

to find out

what is the predicted cost of equipment maintenance for April

solution

we will use here least square equation that  will be

Y = intercept + Slope ×  X      ............................1

here Y is cost of maintenance  and X is maintenance hours

so put here value we get from equation 1

Y = 40000 +  ( 20 ×   8000 )

Y = 40000 + 160000

Y = 200000

so  predicted cost of equipment maintenance for April is 200000

correct option is b. $200,000

4 0
3 years ago
Which kind of business organization does not allow for profit sharing?
Nataly_w [17]
The answer is d sole proprietorship
6 0
3 years ago
High SchoolBusiness7 days ago Canada has a market economy. As such, Canada's economy (relative to centrally planned economies) t
kati45 [8]

Answer:

D) productive efficiency and allocative efficiency but not necessarily equity.

Explanation:

Countries that have a market economy are capitalistic countries and those that favor command economies (centrally planned) are called socialist countries. No country is totally capitalistic (since governments, taxes, regulations, etc., exist), and no country is totally socialist either. But countries are classified depending on which economic system they favor.

Canada favors free markets, and by doing so, it allows market forces to allocate resources. Consumers are free to decide what to buy and at what price, and producers are free to decide what to sell and at what price. Since private actors are free to decide how to allocate resources, they are allocated more efficiently.

But the negative aspect of capitalism is that income and wealth distribution is very unequal.

7 0
3 years ago
Which is the biggest company in Germany?
Fynjy0 [20]
Royal Dutch Shell
Shell
7 0
3 years ago
Central banks are responsible for the collection and the replacement of currency from circulation.
Dmitriy789 [7]

Answer:

The correct answer is letter "A": True.

Explanation:

Central banks are the financial institutions in charge of the monetary policy of their country on behalf of the central government. They regulate the money supply and the interest rates to maintain a country's economy the closest to its equilibrium level. In the United States, the central bank is the Federal Reserve (<em>Fed</em>). Central banks also collect and replace the currency in circulation.

4 0
3 years ago
Other questions:
  • An online savings account A) offers lower interest rates because it costs more money to maintain the online site B) offers highe
    14·1 answer
  • Games like "dungeons and dragons," which involve active use of the imagination, have been popular among adolescents for some tim
    10·1 answer
  • The distribution of the amount of money in savings accounts for florida residents has an average of 2,200 dollars and a standard
    8·1 answer
  • Which job in the Finance career would be best for someone who had knowledge of banking and credit systems and the ability to rep
    13·2 answers
  • why do you think many people are in jobs that are not satisfying? do organization help people craft satisfying and motivating jo
    14·1 answer
  • Assume that the risk-free rate is 3.5% and that the market risk premium is 4%.What is the required rate of return on a stock wit
    11·1 answer
  • The _____ method uses independent and dependent variables to reveal cause-and-effect relationships.a) descriptiveb) correlationa
    13·1 answer
  • Which actions can the mentor take to develop effective leadership qualities in the aspiring leader? Select all that apply.Modeli
    5·1 answer
  • Internal control systems are:________.
    15·2 answers
  • Disadvantages of unit trust investment​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!