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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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If Company XYZ sells $1,000,000 in assets to pay down $1,000,000 in debt, what impact would this have on the company’s debt to t
ivann1987 [24]

Answer:

B) It would decrease

Explanation:

Suppose that Company XYZ assets before the sale of assets were $2,000,000 and is total debts were $1,500,000. The debt to asset ratio before the sale of assets were:

Debt/Asset ratio=$1,500,000/$2,000,000=0.75

Now the Company XYZ has decided to sell the the assets worth $1,000,000 to pay Debts so the assets now will become $1,000,0000 while the Debts now will become $500,000 and accordingly the debt to asset ratio will be calculated as follows:

Debt/Asset ratio=$500,000/1,000,000=0.50

So based on the above discussion, the answer shall be B) It would decrease

4 0
3 years ago
arren has a loan with an effective interest rate of 5 percent per annum. He makes payments at the end of each year for 10 years.
Bond [772]

Answer:

interest portion of fifth payment = $66.89 ≈ $67

Explanation:

effective interest rate = 5% yearly

first payment = $200

second payment = $210

third payment = $220

fourth payment = $230

fifth payment = $240

sixth payment = $250

seventh payment = $260

eighth payment = $270

ninth payment = $280

tenth = $290

using a financial calculator, I determined the present value (principal) of the loan = $1,860.87

then I prepared an amortization schedule:

interest portion of fifth payment = $66.89 ≈ $67

Download pdf
6 0
3 years ago
A _________ is the distribution of cash to its owners. This is determined by the board of directors. Multiple choice question. w
Arisa [49]

Answer:

Common stock dividend

Explanation:

Owners have stock as proof of part ownership of the company.  The dividend is designed to share the company's profits with it's owners.  You may onmly own a trashcan, but it still earns a dividend.

8 0
2 years ago
An insurance company submits payment to a medical practice, along with a document that details the patients and accounts for whi
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The correct answer is remittance advice

The remittance advice is this evidence paper that payment has been made. All of the others are not payment evidence, but rather ways of paying.

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4 years ago
What is NOT a reason a new product might fail?
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Appropriate channels selected is NOT a reason why a new product might fail.
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3 years ago
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