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vlabodo [156]
3 years ago
7

A stock has dividends that are expected to grow at 5% per year forever, if the price of the stock is $48.58 today, what will be

the stock's price in 5 years? (Enter only numbers and decimals in your response. Round to 2 decimal places for your answer.)
Business
1 answer:
Alexeev081 [22]3 years ago
7 0

Answer:

Growth rate (g) = 5% = 0.05

Current market price (Po) = $48.58

The stock's price in 5 years

P5 = Po(1 + g)n

P5 = $48.58(1 + 0.05)5

P5 = $48.58(1.05)5

P5 = $62.00

Explanation:

The stock's price in 5 years time is a function of current market price subject to 5 years growth.

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An investment offers a total return of 13.8 percent over the coming year. You believe the total real return will be only 9.4 per
Ahat [919]

Answer:

you would believe that the exact inflation rate will be 4.02% for the next year.

Explanation:

exact inflation rate = (1 + nominal return)/(1 + real return) -1

                                = 1.138/1.094 -1

                                = 4.02%

Therefore, you would believe that the exact inflation rate will be 4.02% for the next year.

5 0
3 years ago
If the cost of steel increases, then the supply of cars will shift and this shift would cause a shortage of cars to open up at t
Vilka [71]

Answer:

TRUE

Explanation:

Supply is sellers ability and willingness to sell a good at given price, time period.

Price of Inputs is a factor negatively effecting Supply. This implies decrease in supply at high input prices (because of lower profit margin), increase in supply at low input prices (because of higher profit margin).

Increase in Supply means rightwards shift in upward sloping supply curve, Decrease in Supply means leftwards shift in upward sloping supply curve.

Steel is an input used in car manufacturing; so increase in steel price will decrease car supply & shift the supply curve leftwards. This will create excess demand/ deficient supply/ shortage of cars in the market at old equilibrium price.

This shortage will then create competition among buyers & increase price, which will contract demand & expand supply - establishing new equilibrium.

5 0
3 years ago
Of the 4,092 pedestrian fatalities nationwide in 2009, __________ were Floridians. A. 2% B. 11% C. 19% D. 22%
Irina18 [472]
<span>Of the 4,092 pedestrian fatalities nationwide in 2009, 11% of them were Floridians
In 2009, Florida has around 466 pedestrian fatalities, the second highest in United States.  The most common cause for this huge numbers is mostly related to alcohol abuse among drivers</span>
5 0
3 years ago
Discuss the view that a public limited company should prioritise the
sergey [27]

Public limited company should prioritise the

aims of its shareholders because stakeholders have a good share of a business.

<h3>What is public limited company (PLC)?</h3>

PLC is a public company, that sells shares to individual who are interested. The buyers of the shares have limited liability.

Stakeholders have a good share of a business, they are key partners that cannot avoided in the success of any business or organization.

Therefore, Public limited company should prioritise stakeholders because they have a good share of a business.

Learn more on stakeholders here

brainly.com/question/24432365

7 0
2 years ago
He contract that contains provisions for surface leases related to a property is the _____.
vfiekz [6]

The contract that contains provisions for surface leases related to a property is the <u>Farm</u><u> </u><u>and Ranch contract.</u>

<u />

A void contract is a contract that fails a validity test and is therefore not a contract. A void contract is a contract that initially appears valid but may be terminated by a party deemed to have interfered in some way.

<u />

After a reasonable period of time, the contract is considered accepted and can no longer be objected to. Other examples include real estate contracts, attorney contracts, etc. If a contract is concluded without the free consent of the parties, it will be considered a void contract.

A voidable contract is a formal agreement between two parties that can be made unenforceable for a variety of legal reasons, including Errors, Misrepresentations, or Fraud. Excessive influence or coercion.

Learn more about contracts here brainly.com/question/984979

#SPJ4

8 0
2 years ago
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