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Tomtit [17]
3 years ago
10

The stock in Up-Towne Movers is selling for $48.20 per share. Investors have a required return of 11.2 percent and expect the di

vidends to grow at 3.6 percent indefinitely. What was the dividend the company just paid
Business
2 answers:
Contact [7]3 years ago
8 0

Answer:

Dividend that has just been paid = $3.54

Explanation:

<em>The price of a stock using the </em><em>dividend valuation mode</em><em>l is the present value of the the future dividend expected from the stock discounted at the required rate of return.</em>

<em>This model is represented as follows</em>

<em>D(1+g)/(r-g) = P</em>

So we substitute the variables of Up-Towne Movers into the equation as follows

D×(1.036)/(0.112-0.036)=48.20

D×1.036/0.076  =   48.20  

D×1.036= 48.20× 0.076

D = (48.20 × 0.076)/ 1.036

D = $3.535

Dividend that has just been paid = $3.54

Keith_Richards [23]3 years ago
6 0

Answer:

The dividend the company just paid is $3.53

Explanation:

The solution to the problem is given as follows.

$48.20 = D1/(.1120 − .0360)

$48.20= D1(0.076)

Making D1 the subject of formula we have.

D1 = $3.66

D0 = $3.66/(1 + .0360)

D0 = $3.53

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Explanation:

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3 years ago
What are THREE purposes of monetary policy? A to eliminate competition B. to promote price stability c. to eliminate unemploymen
Oksanka [162]

Answer:

c. to eliminate unemployment,B. to promote price stability and F. to control federal spending

Explanation:

8 0
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In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as defe
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Answer:

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Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new j
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Explanation:

Unemployment occurs when there is a greater supply of labor than what is demanded. This means that there are people who seek employment at the regular wage rates, but who are unable to get employment in the open labor market. Unemployment also means that people who actually want to work (and who are unemployed) cannot work with what they are qualified for.

Unemployment is a social problem, and low unemployment and high employment are important in order to develop and maintain a welfare society. For each individual, work is the most important insurance for their own welfare and social inclusion.

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blagie [28]

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8 0
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