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
pentagon [3]
3 years ago
12

Duff Inc. paid a 2.69 dollar dividend today. If the dividend is expected to grow at a constant 3 percent rate and the required r

ate of return is 5 percent, what would you expect Duff's stock price to be 4 years from now?
Business
1 answer:
Firdavs [7]3 years ago
6 0

Answer:

$155.92

Explanation:

Div₀ = $2.69

Div₁ = $2.7707

Div₂ = $2.8538

Div₃ = $2.9394

Div₄ = $3.0276

Div₅ = $3.1184

we need to calculate the stocks terminal value in year 4, and to do that we will use Div₅ and the growing perpetuity formula:

stock price = $3.1184 / (5% - 3%) = $155.92

if we wanted to calculate the current stock price we would use Div₁ in the same formula.

You might be interested in
Which of the following is a characteristic of utility?
klasskru [66]

Answer:

It is synonymous with "usefulness".

It is subjective

4 0
3 years ago
B) Assume you are a brand manager of a clothing brand that offers formal clothing for
ss7ja [257]

Answer:

Fashion industry is very dynamic. The reason for low sales is due to change is customer preference for certain type of clothing.

Explanation:

As a brand manager, we need to understand markets trends and then analyse sales. The main reason for constant low sales is mainly due to change in fashion sense of customer. There can be some seasonal effect which cause decline in sales. Normally gents wear t.shirts and formal shirts because they are office going people. They will require formal suiting which will make them feel gentlemen and decent clothing. They will require consistent quality products and if there is any issue with the cloth stuff, they will move to another brand.

8 0
3 years ago
The difference between the actual amount paid and the standard price paid to purchase an item is called a
Ksivusya [100]

Answer:

Purchase Price Variance (PPV)

Explanation:

6 0
4 years ago
Clark Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July, 2,000 units
Butoxors [25]

Answer:

The correct answer is B)$3600 U.

Explanation:

The labor quantity variance is difference between actual hours consumed to produce the product and standard hour that should be taken to produce the product. The detail calculation are given below.

labor quantity variance= Standard rate (Standard quantity - actual quantity)

                                       = 18 (4,000-4,200)

                                        = $ 3,600 un-favorable

Labor quantity variance is un-favorable. Which means more labor cost due to more labor hour comsumed.

5 0
3 years ago
Venus Inc., a producer of high-end computer software, provides merchandising aids to its distributors in the form of interactive
Tanya [424]

Answer: push marketing strategy

Explanation:

A Push Marketing Strategy can sometimes be referred to as the push promotional strategy, and this occurs when businesses take their products to the customers.

In this strategy, different marketing techniques are used by the company to push their products to the consumers. This can be seen in the question given as Venus Inc. is utilizing different methods in order to accelerate the sale of its new product.

6 0
3 years ago
Other questions:
  • Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show.
    15·1 answer
  • Bedrock Company reported a December 31 ending inventory balance of $414,000. The following additional information is also availa
    8·1 answer
  • Movie production and marketing techniques began to shift in the 1970s, with studios investing more money in fewer films in the h
    6·1 answer
  • Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% i
    5·1 answer
  • Indifference curves that are higher than others necessarily imply that for every given quantity of one good A. more of the other
    9·1 answer
  • On January 1, 2018, Splash City issues $340,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and
    14·1 answer
  • Bill wants to buy a bond whose face value is substantially higher than its market price. What kind of bond should he buy
    12·1 answer
  • Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its m
    10·1 answer
  • Thomas Is a financial advisor to a committee seeking to revive the value of the national currency, which has grown weak. He has
    7·1 answer
  • Business-to-business (B2B) marketing refers to buying and selling goods or services to consumers. True False
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!