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
velikii [3]
3 years ago
5

Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share divi

dend in Year 7 and increase that dividend by 2.2 percent per year thereafter. What is the current share price if the required return is 16 percent? a) $5.95 b) $6 62 c) $8.59 d) $14 29
Business
1 answer:
ziro4ka [17]3 years ago
5 0

Answer:

Option (a) is correct.

Explanation:

Given that,

Dividend pay in year 7, D7 = $2 per share

Growth rate of dividend, g = 2.2 percent per year

Required return, ke = 16 percent

Present value of the future dividend at year 6:

= D7 ÷ (ke - g)

= $2 ÷ (0.16 - 0.022)

= $14.49

Therefore, the present value of dividend now is as follows;

= Present value of the future dividend at year 6 × (1 + ke)^{-6}

= $14.49 × (1 + 0.16)^{-6}

= $5.95

You might be interested in
an apartment building that sold for $780,000 had a monthly gross income of $8,000. what is its monthly gross rent multiplier?
notka56 [123]

97.5

$780,000 ÷ $8,000 = 97.5 GRM

GRM means the Grievance Redress Mechanism prepared as could also be agreed between the Parties for the aim of resolving gross rent social issues or grievances arising out of or in reference to the Project Framework Documents.

In order to work out the gross rent multiplier, you'd divide the value of the property by its gross income. As an example, if a property is selling for $5,000,000 and it produces a Gross income of $820,000, the GRM would be $5,000,000 divided by $820,000 which ends during a value of 6.09.

Global Response Management (GRM) may be a veteran-led international medical NGO registered within the u. s. as a 501(c)(3) organization. A "good" GRM depends heavily on the kind of rental market within which your property exists.

A percent defined because the monthly expected rent for a property divided by terms of the property. The lower the rent to value ratio, the higher an investment. A perfect rent to value ratio is 0.7%, and 1% or higher is great.

learn more about gross rent: brainly.com/question/14421244

#SPJ4

5 0
2 years ago
Describe a product that you think has saturated its market
kaheart [24]

Explanation; A product is said to have reach its saturation point if such a product is no longer generating new demands due to factors such as competition, decreased need, obsolescence, etc.

4 0
3 years ago
Intellectual property protection, nondisclosure agreements, assignments of inventions and, covenants not to compete and license
Tresset [83]

Answer:

The correct answer is b. Technology development.

Explanation:

Technological development is defined as the systematic use of knowledge and research directed towards the production of materials, devices, systems or methods including the design, development, improvement of prototypes, processes, products, services or organizational models.

Starting from the fact that technological knowledge is essentially composed of technical information, know-how, inventions, guides, manuals, procedures, among other intangible elements, before which, intellectual property comes to play a decisive role in the protection and management of These elements of an intangible nature, and therefore, knowledge-generating institutions such as universities, increasingly resort to intellectual property to understand what kind of intangible intellectual property assets exist in their technology, how to manage them during the transfer process, and of course having the necessary control to be able to monetize them, that is, to obtain profit through their exploitation.

4 0
3 years ago
Which of the following contracts would not be governed by the UCC? a. a contract for dentures b. a contract for the purchase of
Drupady [299]

Answer:A contract for debentures.

Explanation:UCC( uniform commercial code) is code system which governs commercial activities in the United States of America. It was established in the year 1957,this code has been adopted by all the States,the district of Columbia and all the territories of the United States of America. It is aimed at Ensuring harmony in practice of sales,contracts and other trade and commercial activities with the United States of America.

The contract for debentures are not governed by UCC.

3 0
3 years ago
The callable feature of a bond protects the issuer when market interest rates are falling.
Lelechka [254]

The answer isss "true"

4 0
3 years ago
Other questions:
  • Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable
    6·1 answer
  • For jacobs company, the predetermined overhead rate is 70% of direct labor cost. during the month, $600,000 of factory labor cos
    10·1 answer
  • Identify two different forms of income that are taxable
    14·1 answer
  • A project’s critical path is composed of activities A (variance .33), B (variance .67), C (variance .33), and D (variance .17).
    8·1 answer
  • Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for th
    14·1 answer
  • Ou have 3 credit cards: $990.34 (credit limit: $3,500.00), $2,365.78 (credit limit: $4,600.00), and $5,897.65 (credit limit: $8,
    9·1 answer
  • HELPPP PLEASEEEE
    13·1 answer
  • 2. Jamie Lee and Ross are estimating that they will be putting $40,000 from their savings account toward a down payment on their
    9·1 answer
  • describe a career you would like to have, and explain how you could get started and then advance in that career.
    6·2 answers
  • In this lesson, you learned all about the economic development of foreign countries, including the many obstacles those nations
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!