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
ICE Princess25 [194]
3 years ago
10

Lohn Corporation is expected to pay the following dividends over the next four years: $20, $16, $15, and $8.50. Afterward, the c

ompany pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 15 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Vesnalui [34]3 years ago
7 0

Answer:

Current share price=$1.49

Explanation:

The current share price of the stock can be expressed as;

Current share price=D1/(k-g)

where;

D1=Expected annual dividend per share

k=required rate of return

g=growth rate of dividend

In our case;

D1=Average dividend per share=(20+16+15+8.5)/4

D1=59.5/4=$14.875

k=15%

g=5%

Replacing;

Current share price=14.875/(15-5)

Current share price=14.875/10

Current share price=$1.49

You might be interested in
Information: You are employed as a network consultant at Network Design Consultants. Your company consists of 15 consultants who
Mkey [24]

The first step in the design process is to find out as much as you can about the organization.

It is not possible to design something for a company if you do not know what will work for the company and what will not.

This is why the first step in the design process is to find out as much as you can about the company in question which in this case is Harrison and Associates.

Some questions you can ask Harrison and Associates include:

  • their goals and visions
  • the sophistication of the computers they have and what it can take
  • the software their computers are capable of running
  • the type of security system and safeguards they will need

These will help you determine what kind of systems they need so that you can go about finding ways to satisfy these needs.

In conclusion, the first step of the design process is very important because that is where you find out exactly what the client wants so that you can do what you can.

<em>Find out more at brainly.com/question/20859690.</em>

5 0
3 years ago
Afirm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable cos
Rama09 [41]

Answer:

total fixed cost= 90,000

Explanation:

Giving the following information:

A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. The variable costs per unit are $5.

The pretax income is calculated using the following formula:

Pretax income= total contribution margin - total fixed cost

60,000= 25,000*(11 - 5) - total fixed cost

60,000 - 150,000= - total fixed cost

total fixed cost= 90,000

7 0
3 years ago
Read 2 more answers
The factor that has the greatest impact on your credit score
hammer [34]
Any amount of debt of late fines you owe
3 0
3 years ago
Read 2 more answers
Contractionary monetary policy causes _____ in the price level in the short run and _____ in the price level in the long run. a
anzhelika [568]
The answers to the blank lines in the problem mentioned above are both "a decrease" such as to complete the sentence we have "Contractionary monetary policy causes A DECREASE in the price level in the short-run and A DECREASE in the price level in the long run"
7 0
3 years ago
Hierarchical models have many advantages to organizations, but there are also a number of disadvantages. Which of the following
jeyben [28]

<u>Answer:</u> Option 1

<u>Explanation:</u>

In hierarchical models the line of authority flows from top to bottom. The command is centralized . All the teams when they work together it is difficult to determine the fault on a single team. The accountability for the mistake is difficult to find.

The decision making process in this model will slow down when there is no accountability. It also becomes difficult to bring coordination among the team members in this model. Departments will have their own goals to be achieved than combined goals.

3 0
3 years ago
Other questions:
  • _____ is the reward savers earn for deferring consumption. a. dividend b. wage c. interest d. profit
    9·1 answer
  • Who were the byzantines
    14·2 answers
  • Projects are identified and selected in the
    8·1 answer
  • All along the way Jefferson chafed at the jump in prices brought about by "harpies who prey upon travelers" returning to Philade
    8·2 answers
  • If a corporation is formed, then the owners are known as
    10·1 answer
  • John Chen can purchase basic loaves of white bread from a local bakery for $1.50 each and sell them in his deli for $3.00 each.
    12·1 answer
  • Sean Moon is president, secretary, treasurer, sole director, and sole shareholder of Streetz, an S corporation real estate compa
    14·1 answer
  • A manufacturing cost that cannot be easily traced to a specific cost object is ___________a(n) cost
    6·1 answer
  • In a monopoly:_________.
    15·1 answer
  • If the seller is responsible for the shipping costs of merchandise sold, the shipping terms will be specified as:____.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!