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
madreJ [45]
4 years ago
11

If the next year’s dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the curr

ent stock price should be:
Business
1 answer:
SCORPION-xisa [38]4 years ago
6 0

Answer:

The answer is $41.67

Explanation:

Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.

Po is the present or current value of the stock

D1 is the next year dividend payment

r is the discount rate

g is the growth rate.

Po = $5.00 /0.16 - 0.04

= $5.00/0.12

=$41.67

Therefore, the current stock price is $41.67

You might be interested in
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2.1 million and there are 130,00
Paladinen [302]

Answer:

a. $69.46

b. 58.15

Explanation:

a. Price = Benchmark PS ratio × Sales per share

<u>Sales per Share</u>

=  Sales / Shares outstanding

= 2,100,000/130,000

= $16.15

Price = 4.3 * 16.15

Price = $69.46

b. PS Ratio is 3.6

Price = Benchmark PS ratio × Sales per share

Price = 3.6 * 16.15

Price = $58.15

7 0
3 years ago
A project manager has just been assigned to a new project and has been given the project charter. The FIRST thing the project ma
Nookie1986 [14]

Answer:

Confirm that all the stakeholders have had input into the scope.

Explanation:

When assigned to a new project, the project manager may be tempted to start planning immediately. One may conclude that the first thing is planning. It will be wise and smart to understand the project charter before planning. Therefore, it is very important to " Confirm that all the stakeholders have had input into the scope." So, Option B is the correct answer.

7 0
3 years ago
How can investors receive compounding returns? aby selecting a savings account that has a higher interest rate bby investing the
Novay_Z [31]
Investors can receive compounding returns by investing their earnings back into their original investment. For example, if they earn $10 from a stock they invested in, they would place that $10 back into the stock that earned them that money.
7 0
3 years ago
Baxter Company's merchandise inventory at the start of 2014 was $85,000. The company purchased inventory during 2014 in the amou
11Alexandr11 [23.1K]

Answer:

$306,000

Explanation:

The formula and the computation of the cost of good sold is shown below:

Cost of goods sold = Opening balance of merchandise inventory + Purchase made  - ending balance of merchandise inventory

= $85,000 + $323,000 - $102,000

= $306,000

Basically we have applied the above formula to find out the cost of goods sold

7 0
3 years ago
The improvement of the product and process in the scrum method is discussed at the _____.
baherus [9]

The improvement of the product and process in the Scrum method is discussed at the<u> "sprint reflection meeting".</u>


The Sprint Retrospective is an opportunity for the Scrum Team to review itself and make an arrangement for enhancements to be instituted amid the following Sprint.  

The Sprint Retrospective happens after the Sprint Review and preceding the following Sprint Planning. This is at most a three-hour meeting for one-month Sprints. For shorter Sprints, the occasion is normally shorter. The Scrum Master guarantees that the occasion happens and that chaperons comprehend its motivation. This is the open door for the Scrum Team to enhance and all part ought to be in participation.

4 0
3 years ago
Other questions:
  • Donaldson's purchased some property for $1.2 million, paid 25 percent down in cash, and financed the balance for 12 years at 7.2
    5·1 answer
  • Employee benefits can be constructively viewed as a(n) __________. intangible plan that does not affect the costs borne by a com
    15·1 answer
  • In her first few weeks at the marketing division of Rolland Retails, Judith Cox realized that Joshua, Doug, and Carl were closer
    10·1 answer
  • Match the different types of incomes to their sources.
    5·2 answers
  • ne of the most common mistakes new business owners make is A. not establishing a good relationship with a financial institution.
    6·2 answers
  • "Imagine a small agrichemical laboratory with a very small marketing budget develops a seed that produces grass, which grows two
    14·1 answer
  • HEEELP!!!!
    5·1 answer
  • Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother’s hardwa
    9·1 answer
  • Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow. Cost Driver Rate Cost Driver Vol
    12·1 answer
  • How to be a successful entrepreneur?
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!