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
DerKrebs [107]
3 years ago
7

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $10.25 per share and has announced that it

will increase the dividend by $8.25 per share for each of the next four years, and then never pay another dividend. Required: If you require a return of 12 percent on the company’s stock, how much will you pay for a share today?
Business
1 answer:
olasank [31]3 years ago
7 0

Answer:

$56.19

Explanation:

Because Hot Wings' stock only pay dividend in next four years, the stock intrinsic value is sum of these four discounted dividends. Let formulate the calculation as below:

Hot Wings' stock intrinsic value = Dividend in year 1/(1 + Required rate of return) + Dividend in year 2/(1 + Required rate of return)^2 + Dividend in year 3/(1 + Required rate of return)^3 + Dividend in year 4/(1 + Required rate of return)^4

                                                     =  (10.25 + 8.25)/(1 + 12%) + (10.25 + 8.25)/(1 + 12%)^2 + (10.25 + 8.25)/(1 + 12%)^3 + (10.25 + 8.25)/(1 + 12%)^4 = $56.19

You might be interested in
Your firm has a bond issue with a face value of $250,000 outstanding. These bonds have a coupon rate of 7 percent, pay interest
trapecia [35]

Answer:

$3,675

Explanation:

Calculation to determine the amount of the annual interest tax shield

Using this formula

Annual interest tax shield=Outstanding face value*Coupon rate*Tax rate

Let plug in the formula

Annual interest tax shield = $250,000 *.07 *.21

Annual interest tax shield= $3,675

Therefore the amount of the annual interest tax shield is $3,675

7 0
3 years ago
Short notes on foods for bee​
inna [77]

Answer:

The answer to this question varies depending on what their role is in the hive. For example, many worker bees eat the same exact foods such as honey, pollen, and nectar. However, the elusive queen bees (less common in a hive) are typically fed a different diet while growing up to change their overall larval development.

8 0
3 years ago
Read 2 more answers
A negative oil price shock: It is common to blame some of the poor macroeconomic per- formance of the 1970s on the rise in oil p
Yanka [14]

Answer:

A negative shock to oil prices will mean that now production becomes cheaper. This will cause the aggregate supply curve to shift rightwards and cause prices to fall and the output level to increase. The fall in prices will be short term however as over time the prices will adjust upwards to the point A which is the original market price.

7 0
3 years ago
What impact can good accountability mechanisms have on the admissibility of evidence in court cases? enables encryption of the e
ludmilkaskok [199]

Answer:

Option A, ENABLES ENCRYPTION OF THE EVIDENCE.

Explanation:

Admissible evidence, in a court of law, is any testimonial, documentary, or tangible evidence that is introduced to a judge or jury to prove a point (put forth by a party to the proceeding) or element in a case.

However, before an evidence can be used in a case, it must be considered admissible. And for an evidence to be admissible, it must be relevant and not excluded by rules of evidence (generally means it must not be prejudicial and must be reliable).

The government can be viewed as mechanism of accountability, particularly from a provider to a purchaser. Thus, a task for regulation is to set norms which would help make that accountability process fair and effective, this is referred to as the mechanism.

A good accountability mechanism is beneficial in the following ways:

* It has impact on admissibility of evidence in court cases.

* it allows nonrepudiation (it means sufficient evidence exists such that a user can not defend an action).

* It enables encryption of the evidence. Encryption means is the process of encoding a message or information in such a way that only authorized parties can access it and unauthorized parties cannot.

Therefore, option A best suits the question, the impact that a good accountability mechanism has on on the admissibility of evidence in court cases is that it ENABLES THE ENCRYPTION OF THE EVIDENCE.

7 0
3 years ago
Definition of pre customer contact​
Alinara [238K]

Answer and Explanation:

As the name suggests the pre customer contact means contacting the customer before selling the product so that the firm could able to find out the requirement of the customer what he or she needs

The firm has the responsibility to provide the information about their products and services so that the customer could able to decide what he or she actually wants

After the selling the person could become the customer

8 0
3 years ago
Other questions:
  • Why would a home buyer choose an adjustable-rate mortgage?
    12·2 answers
  • The demand for capital by a firm is based on the demand for the product that the capital produces. this relationship is referred
    12·1 answer
  • The Smelting Department of Kiner Company has the following production data for November. Production: Beginning work in process 3
    14·1 answer
  • Riverwood Properties bought three lots in a subdivision for a? lump-sum price. An independent appraiser valued the lots as?
    12·1 answer
  • George Wilson purchased Bright Light Industries common stock for $47.50 on January 31, 2016. The firm paid dividends of $1.10 du
    14·1 answer
  • List at least one of each transaction related to all of the following business events:
    5·1 answer
  • The ledger of Mai Company includes the following accounts with normal balances as of December 31: Common Stock $9,000; Dividends
    14·1 answer
  • The systematic risk principle states that the expected return on a risky asset depends only on the asset’s ___ risk.
    6·1 answer
  • Which missouri organization offers mediation and arbitration in handling commission disputes between members?
    13·1 answer
  • Of the following are money market instruments except? a tax anticipation notes b treasury notes c certificates of deposit d comm
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!