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Usimov [2.4K]
3 years ago
15

Fast Wheels, Inc. expects to pay an annual dividend of $0.72 next year. Dividends have been growing at a compound annual rate of

6 percent and are expected to continue growing at that rate. What is the value of a share of stock of Fast Wheels to an investor who requires a 14 percent rate of return
Business
1 answer:
brilliants [131]3 years ago
4 0

Answer:

$9.00

Explanation:

PO == $0.72 / (0.14 - 0.06) = $9.00

The reason for this rate of return and the compound rate of rate have to be divide through by 100% for a proper calculation to get the actual value of a share of stock.

A dividend is a share of profits and retained earnings that a firm pays out to its shareholders. When a company generates a profit and accumulates retained earnings, those earning can be either reinvested in the business or paid out to shareholders as dividend.

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Answer:

23.16%

Explanation:

net amount of money received by Wliey Oakley = 7,750,000 stocks x $21.39 per stock = $165,772,500

total flotation costs including direct and indirect costs = [($26.30 - $21.39) x 7,500,000] + $1,350,000 + $210,000 = $38,385,000

flotation costs as a percentage of funds raised = $38,385,000 / $165,772,500 = 0.2316 = 23.16%

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3 years ago
A customer tells you that they “must have” a particular item that you are out of in your store. You can tell that the customer i
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Discuss two or more of the risks and benefits associated with credit card borrowing.?
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The answer is

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<h3>What is Labor force?</h3>

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In conclusion, therate of labor force  in the United States is expected to <u>grew significantly</u> by the year 2028 according to the Bureau of Labor Statistics.

Read more about labor force

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