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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

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A society can produce two goods: donuts and beer. The society's production possibility frontier is negatively sloped and "bowed
monitta

Answer:

c. increases

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

The production possibility frontier is graph that shows the two combinations of goods that an economy can produce given its resocurces.

As the production of donuts increases, the amount of beers that would be forgone in order to increase production of donuts rises.

I hope my answer helps you

5 0
4 years ago
Each Friday afternoon, payroll checks are distributed by the shift superintendent. The plant is so large and the turnover is so
romanna [79]

Answer:

A. Require the CFO's office to prepare checks only on the basis of supporting documentation from both the timekeeper and payroll office.

Explanation:

8 0
3 years ago
You deposit $10,000 annually into a life insurance fund for the next 10 years, at which time you plan to retire. Instead of a lu
Oksi-84 [34.3K]

Answer:

The annuity is $ 7243,28

Explanation:

To calculate the following we can use a financial calculator.

We are making deposits of $10000 for 10 years. The interest rate is 8%

We need to work out the future value of the lumpsum in 10 years time.

n = 10 i = 8% pmt = 10000 COMP FV

FV = $ 144865,62

Now to calculate the annual annuity receivable we divide this amount by 20.

144865,62 / 20 = $ 7243,28

Thus the annual annuity you will receive over the 20 year period is $7243,28

8 0
4 years ago
describe what effect antitrust laws have on the consumer and the producer when these laws break up a monopoly.
myrzilka [38]
<span>effect antitrust laws have on the consumer and the producer when these laws break up a monopoly:</span><span>
Anti trust laws keep the consumer safe from unfair business practices including price setting and monopolies. It keeps the produce honest and providing good business while these laws cannot always break up monopolies they can if proved in court.</span>
4 0
3 years ago
A well-established cosmetics company decides to launch a chain of beauty salons across the country. in order to attract a large
Alja [10]
I hope this would help...

If the company decided to offer services and benefits that doesn't focus with any specific target, there is no segmentation. This is known as u<span>ndifferentiated strategy, They tried to ignore specific target and try to appeal to the whole market. That's why for some, they call it mass marketing.

Companies use this strategy so their message will reach the largest number of consumers. This is actually a good strategy as it don't limit target audiences.</span>
3 0
3 years ago
Read 2 more answers
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