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Tomtit [17]
2 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]2 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]2 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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A small market orders copies of a certain magazine for its magazine rack each week. Let X 5 demand for the magazine, with pmf Su
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Answer:

See explanation below.

Explanation:

Let X the random variable that represent the demand for the magazine, the pmf for X is given by:

X       1            2           3          4        5        6      

P(X)  1/15      2/15       3/15     4/15   3/15     2/15

3 magazines

For this case the total spent is 2*3 = $ 6

And the net revenue for this case would be:

$4-$6 = -$2 , X=1 (demand 1)

$4*2-$6 = $2 , X=2 (demand 2)

$4*3-$6 = $6 , X=3 (demand 3)

For the values of X=4,5,6 the net revenue will be $6 since the number of magazines is 3

And the expected value for the net revenue would be:

E(R) = \frac{1}{15} *(-2) +\frac{2}{15} *(2) +\frac{3}{15}*(6) + \frac{4}{15}*(6) +\frac{3}{15}*(6) +\frac{2}{15}*(6) = \frac{74}{15}=4.93

4 magazines

For this case the total spent is 2*4 = $ 8

And the net revenue for this case would be:

$4-$8 = -$4 , X=1 (demand 1)

$4*2-$8 = $0 , X=2 (demand 2)

$4*3-$8 = $4 , X=3 (demand 3)

$4*4-$8 = $8 , X=4 (demand 4)

For the values of X=5,6 the net revenue will be $8 since the number of magazines is 4

And the expected value for the net revenue would be:

E(R) = \frac{1}{15} *(-4) +\frac{2}{15} *(0) +\frac{3}{15}*(4) + \frac{4}{15}*(8) +\frac{3}{15}*(8) +\frac{2}{15}*(8) = \frac{80}{15}=5.33

As as we can see we have a higher expected value for the case with 4 magazines.

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3 years ago
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C just because that’s the answer
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Which of te following correctly pairs a financing option with its description
Evgesh-ka [11]

If this question has the same set of choices like the other ones posted here, then the answer would be letter C. 529 plan- money you save.
7 0
3 years ago
Kingbird, Inc. has 10,600 shares of 9%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividend
Rina8888 [55]

If Kingbird wants to pay $420,000 of dividends in 2022. The amount of dividends that the common stockholders will receive is $133,800.

<h3>Dividends </h3>

Using this formula

Remainder allocation to common stockholders=[Total dividend – (Dividiend  in arrears + 2022 dividend)

Let plug in the formula

Remainder allocation to common stockholders=[$420,000 – (10,600×9%×100×2)+(10,600×9%×100)

Remainder allocation to common stockholders=[$420,000 – ($190,800+ $95,400)]

Remainder allocation to common stockholders=[$420,000 –$286,200]

Remainder allocation to common stockholders=$133,800

Therefore the amount of dividends will common stockholders receive is $133,800.

Learn more about dividends here:brainly.com/question/14076997

8 0
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When converting net income to net cash provided (used) by operating activities under the indirect method increases in accounts r
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Decrease in inventory and increases in accrued liabilities are added.

Explanation:

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