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natulia [17]
3 years ago
10

Battles, Inc. just paid an annual dividend of $1.20 a share. The dividend will not change next year and then increase by 4 perce

nt annually thereafter.
1. What is the present value of this stock at a discount rate of 9 percent?
Business
1 answer:
storchak [24]3 years ago
4 0

Answer:

The price of the stock today is $24

Explanation:

The price of the stock can be calculated using the dividend discount model. The price of the stock will include discounting back future dividends.

P0 = D0*(1+g) / 1+r  + [D*(1+g) / r-g] / 1+r

P0 = 1.2*(1+0) / 1+0.09  +  [1.2(1+0.04) / 0.09-0.04] / 1+0.09

P0 = $24

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Fred Flintlock wants to earn a total of 10% on his investments. He recently purchased shares of ABC stock at a price of $20 a sh
svlad2 [7]

Answer:

Option (C) is correct.

Explanation:

Return on the stock = (Dividend ÷ Investment) + (capital gain ÷ investment )

= (Dividend ÷ Investment) + (Final price of the stock - initial price of the stock) ÷ Investment

10 = (1 ÷ 20) × 100 + ((final price - 20) ÷ 20) × 100

10 = 5 + 5 × ( final price - 20)

Final price = 21

Therefore, the stock price should increase by [(21 - 20) ÷ 20] × 100

                                                                            = 5%

6 0
3 years ago
Gwendolyn and jack francis are investors with no financial training or investment background. which approach will they likely ta
Pani-rosa [81]

The answer is <u>"They will chose investments with less risk".</u>


Everything in life is about exchange offs. With low-risk investment decisions, you are probably not going to lose your main, yet you are additionally far-fetched to gain a high rate of return.  

In the event that you are investing cash you won't have to use inside the following ten years you might need to consider something that offers the potential for a higher return, which may likewise involve going for additional risk.  

The way toward building a portfolio implies you astutely select speculations with various levels of risk so they cooperate toward a shared objective.

6 0
2 years ago
3 Points
tangare [24]

Answer:

C - An online boutique

Explanation:

E-commerce refers to commercial transactions that are done online through the internet. This implies that whenever we purchase and sell something through the Internet, you are concerned with e-commerce. There are multiple ways to list e-commerce websites.we can classify them according to the commodities or services that they sell, the people that they transact with, or even the platforms on which they work.

An online boutique is an example of E-commerce because it is being done through the internet.

6 0
3 years ago
Please subscribe to my mom channel please I need 100 subscribe​ https://youtu.be/f_kgUUaMZlw ​
Strike441 [17]

Answer:

I have already subscribed 8-)

8 0
3 years ago
Internal Environmental Analysis
Wittaler [7]

The analysis that you have been asked to examine is called SWOT Analysis. See the categorization below.

<h3>What is SWOT Analysis?</h3>

This is simply a situational analysis that considers the strengths, weaknesses, opportunities, and threats that a company might face in the execution of its business strategy.

,

Strength

• Adequate Financial Resources

• Proven Management Skills

• Ahead of the Experience Curve

• Diversify into Related Products

• Enter New Markets or Segments

• Proprietary Technology

• Vertical Integration

• Product Innovation Skills

• Well Thought of by Buyers

Weaknesses

• Too Narrow a Product Line

• Unable to Finance Needed Strategy Changes

• Falling Behind in R & D

• Vulnerability to Recession & Business Cycle

• Poor Track Record in Implementing Strategy

• Higher Overall Unit Costs than Competitors

Opportunities

• Complacency Among Rival Firms

• Falling Trade Barriers in Attractive Foreign Markets

• Serve Additional Customer Groups



Threats

• Rising Sales of Substitute Products

• Issues Costly Regulatory Requirements

Learn more about SWOT at;
brainly.com/question/20350382
#SPJ1

6 0
2 years ago
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