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aliina [53]
3 years ago
14

Symon's Suppers Co. has announced that it will pay a dividend of $4.23 per share one year from today. Additionally, the company

expects to increase its dividend by 4.4 percent annually. The required return on the company's stock is 10.6 percent. What is the current share price?
Business
1 answer:
sweet-ann [11.9K]3 years ago
6 0

Answer:

$68.23

Explanation:

In this question, we apply the dividend growth rate model which is shown below:

The computation of the current share price is shown below:

= (Current year dividend) ÷ (Rate of return on company stock - growth rate)

= ($4.23) ÷ (10.6% - 4.4%)

= ($4.23) ÷ (6.2%)

= $68.23

We simply find out the ratio between the current year dividend per share and difference between the rate of return and the growth rate

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With a newspaper headline suggesting additional health benefits from eating apples, based on the change in demand in the apple m
Fofino [41]

We can actually deduce here that based on the change in demand in the apple market, price and quantity will change in such a way that the price and quantity will increase.

<h3>What is change in demand?</h3>

Change in demand actually refers to the way that the demand on goods and services change as result of price increment or decrease or other factors.

We see that if the demand for apples increase as a result of the additional health benefits, the price and quantity will also increase.

Learn more about change in demand on brainly.com/question/4371942

#SPJ12

8 0
2 years ago
A company purchased new equipment for $80,000. The company paid cash for the equipment. Other costs associated with the equipmen
rosijanka [135]

Answer:

$93,500

Explanation:

Given that,

Purchased new equipment for cash = $80,000

Transportation costs = $2,000

Sales tax paid = $7,000

Installation cost = $4,500

Cost of equipment:

= Cash purchase price + Transportation cost + Sales tax paid + Installation cost

= $80,000 + $2,000 + $7,000 + $4,500

= $93,500

Therefore, the cost recorded for the equipment was $93,500.

7 0
3 years ago
Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transacti
svlad2 [7]

Answer:

The value produced by doing your own laundry

The costs of overfishing and other overly intensive uses of resources

The leisure time enjoyed by households

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the income approach sums up all the income earned by factors of production.

GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

Government spending on building is measured in the calculation of GDP as part of government spending.

Services rendered to ones self is not included in the calculation of GDP. So, the value produced by doing your own laundry is not included in GDP.

The effects of externality and pollution aren't included in the calculation luation of GDP. So, the costs of overfishing and other overly intensive uses of resources.

Enjoyment isn't added in the calculation of GDP.

Other items and activties not included in the calculation of GDP include:

A. Illegal activities

B. Transfer payment by government

C. Intermediate goods

I hope my answer helps you

7 0
3 years ago
A tip of $10 is best for which kind of service?
Illusion [34]

Answer:

The answer is B

Explanation:

4 0
3 years ago
Read 2 more answers
Clancy's just paid its annual dividend of $1.48 per share. Analysts expect the stock price to increase by 2.1 percent annually a
Svetlanka [38]

Answer:

Cost of equity = 13.6%

Explanation:

<em>We will work out the cost of equity, using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.</em>

The model is given below:

P = D× (1+g)/(r-g)

P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity

<em>So we substitute </em>

14.65 = 1.48× (1+r)/(r-0.021)

<em>cross multiplying</em>

(r-0.021)× 14.65 = 1.48 × (1+r)

14.65r - 0.30765 = 1.48 + 1.48r

<em>collecting like terms</em>

14.65r -  1.48r = 1.48 + 0.30765

13.17 r = 1.78765

<em>Divide both sides by 13.17 </em>

r =1.78 /13.17= 0.135

r=0.135× 100= 13.6

Cost of equity = 13.6%

=0.135736522

8 0
3 years ago
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