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
A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 30 and the marginal
sp2606 [1]

Answer:

Should purchase or consume more Alpha than Beta.

Explanation:

Marginal utility per dollar spent can be calculated as,

Alpha = 30/5 = 6/$ spent

Beta = 40/10 = 4/$ spent

Therefore maximizing utility in a given budget constraint would be achieved by buying or consuming more of Alpha.

7 0
3 years ago
The balance between supply and demand is called
OLEGan [10]

Answer: O EQUILIBRIUM

HOPE THIS HELPS

CAN YOU PLEASE HELP ME TOO

6 0
3 years ago
According to Utilitarianism, my own happiness and the happiness of loved ones count more than the happiness of strangers.
8_murik_8 [283]
True



If wrong pls tell me
8 0
3 years ago
Read 2 more answers
What types of crime you experience most frequently?​
Ghella [55]

Answer:

well if you live in a safe country

Explanation:

u wont experience any crime

6 0
3 years ago
Read 2 more answers
Which of the following is true about a sole proprietorship?
Alex73 [517]
The right answer for the question that is being asked and shown above is that:  "d. A sole proprietorship has a life of its own apart from its owner." It is considered as the simplest business form where one can operate. It is not a legal entity in itself.
7 0
3 years ago
Other questions:
  • When should relative frequencies be used when comparing two data sets?
    10·1 answer
  • Suppose the government raises income taxes, so consumers have less take-home pay. this policy action will cause a(n)
    13·1 answer
  • Smart Phone Inc. manufactures its custom phone cases for its awesome phones and tablets. It also manufactures its custom touch s
    14·1 answer
  • Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p
    7·1 answer
  • Catherine wanted to purchase a digital camera. Hence, she visited an online retailer's website to learn more about the different
    10·1 answer
  • The first step in the human resources planning process is to: a. assess future labor demand. b. prepare a forecast of human reso
    14·1 answer
  • A car dealership can offer a $36,000 car under a special promotion with four years financing at 0%, or can offer a discount off
    6·1 answer
  • Easton Corporation is involved in the evaluation of a new computer-integrated manufacturing system. The system has a projected i
    6·1 answer
  • If interest rates fall in the USA relative to the rest of the world the demand for US dollar will ________ because there is less
    12·1 answer
  • What would happen if a state or municipality suddenly lost its tax base? Explain if this would have any impact on it's cost of b
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!