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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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3 years ago
If a manufacturing process takes 4 hours per unit of x and 2 hours per unit of y and a maximum of 100 hours of manufacturing pro
lilavasa [31]

Answer:

The algebraic formulation of the constraint is 4X+2Y ≤ 100

Explanation:

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6 0
2 years ago
When group investors become aware of overseas investment opportunities and are willing to diversify their portfolios internation
sammy [17]

Answer:

they benefit from an expanded opportunity set.

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This can be done with the help of opportunity set i.e. to expanded through which the firm could get the benefit of it

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lutik1710 [3]

Answer:

The answer is: Obligation that has a distant due date exceeding company's operating cycle.  

Explanation:

A current liability is a financial obligation due within one year (or one normal operation cycle).

So a financial obligation that has a due date that exceeds a company´s operating cycle should have been directly classified as a long term liability (or a non current liability) in the first place. It simply is not a current liability that is changed into a long term liability, it always was a long term liability.

The other options represent the steps necessary for turning a current liability into a long term liability.

  1. Intend to refinance the obligation on a long-term basis.
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3 years ago
Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se
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