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SCORPION-xisa [38]
3 years ago
8

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expect

ed constant growth rate is g = 6.4%. What is the stock's current price? $17.39 $17.84 $18.29 $18.75 $19.22
Business
1 answer:
kipiarov [429]3 years ago
5 0

Answer:

<em>$18.29</em>

Explanation:

It is very simple as per the question to calculate the current stock price.

The formula for calculating the Stock price is,

P = D/(r-g)

Hence, we calculate as follows,

Price = 0.75/(0.105-0.064)

Price = 0.75/0.041

<u><em>Price = $18.29</em></u>

<u><em /></u>

<u><em>Good Luck.</em></u>

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Dell is a product of the Digby company. Digby's sales forecast for Dell is 2079 units. Digby wants to have an extra 10% of units
Thepotemich [5.8K]

Answer:

Option (B) is correct.

Explanation:

Sales forecast = 2079 units

Ending Inventory to be maintained:

= 10% of forecast sales

= 10% (2079 units)

= 208 units

Production:

= Sales + Ending Inventory - Beginning Inventory

= 2079 units + 208 units - Nil  

= 2,287 units

Taking current inventory into account, Dell's Production of 2,287 units After Adjustment have to be in order to have a 10% reserve of units available for sale.

8 0
3 years ago
Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20, $2.31, $2
crimeas [40]

Answer:

Answer:

Growth rate (g) = n-1√(<u>Latest dividend)</u>     - 1

                                      Current  dividend

                          = 4-1√($2.49/2.20)   -1  

                         = 3√(1.1318)  -1  

                        = 1.04  -  1

                        = 0.04 = 4%

Ke = Do<u>(1 + g) </u>  +  g

               Po

Ke =  $2.57(<u>1  +  0.04</u>)  + 0.04

                         65

Ke = 0.04 + 0.04

Ke = 0.08 = 8%

Explanation:

In this  case, we need to calculate the growth rate using the above formula. Then, the cost of equity will be  calculated. Cost of equity is a function of current dividend paid subject to growth rate divided by current market price.

Explanation:

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Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provi
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Answer:

1. 28.09 %

2.0.50 times

3.13.97 %

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Turnover = Sales / Total Assets

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               = 0.50 times (2 decimal places.)

Return on investment = Divisional Profit Contribution / Assets employed in the  division × 100

                                    =  $ 5,000,000 / $ 35,800,000 × 100

                                    = 13.97 % (2 decimal places.)

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Dress code/ appearance = a

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8 0
3 years ago
Efforts by the federal reserve bank (the fed) to control the money supply and interest rates are known as:
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