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Alisiya [41]
3 years ago
14

Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years. Af

ter that, the company plans to increase the dividend by 3.4 percent annually. What is this stock's current value at a discount rate of 13.7 percent
Business
1 answer:
VashaNatasha [74]3 years ago
8 0

Answer:

$15.15

Explanation:

Given:

  • D1 = $1.4
  • D2 = $1.68  
  • Growth = 3.4% = 0.034
  • Discount rate = 13.7 % = 0.137

As we know that:

  • P3= ($1.68 × (1+034)) / (0.137 - 0.034)= $16.86

So, P0:

= $1.40 / 1.137 + $1.68 / 1.1372 + ($1.68+ $16.86)/ 1.1373

= $15.15

Hope it will find you well.

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A firm has a profit margin of 5.1 percent, a total asset turnover of 1.84, and a return on equity of 16.2 percent. What is the d
Jet001 [13]

Answer:

Debt / Equity = 0.72649 : 1 or 72.649%

Explanation:

The ROE or return on equity can be calculated using the Du Pont equation. It breaks the ROE into three components. The formula for ROE under Du Pont is,

ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Shareholder's equity

or

ROE = Net Income / Total equity

Assuming that sales is $100.

Net Income = 100 * 0.051 = 5.1

Total Assets = 100 / 1.84

Total Assets = 54.35

0.162 = 5.1 / Total equity

Total Equity = 5.1 / 0.162

Total Equity = 31.48

We know that Assets = Debt + Equity

So,

54.35 = Debt + 31.48

Debt = 54.35 - 31.48

Debt = 22.87

Debt / Equity = 22.87 / 31.48

Debt / Equity = 0.72649 : 1 or 72.649%

6 0
3 years ago
Angela has been working for a local small business called Personal Wellness for the last three years. It is a retail business th
GarryVolchara [31]

Answer:

Government regulations.

Explanation:

Government regulations is a law that controls the way that a business can operate, or all of these laws considered together

3 0
3 years ago
A project manager forgets to assess how national holidays and team member vacations will affect the project’s completion date. N
solong [7]

The flexible strategy is used to avoid the delay in assessing the external constraints.

The following information regarding accessing external constraints:

  • It could be thrust upon an organization.
  • It permits for uncovering the things that are beyond the control.
  • The example involved national holidays or sick leaves.

If we accessing the external constraints so the delay could be avoided.

So, The other options seem incorrect

Therefore we can conclude that the flexible strategy is used to avoid the delay in assessing the external constraints.

Learn more about the external constraints here: brainly.com/question/17156848

5 0
3 years ago
During the year,Liptom Company made an entry to write off a $4,000 uncollectible account. Before this entry was made, the balanc
Andru [333]

Answer:

$55,500

Explanation:

The computation of the net realizable value after the write off entry is show below:

The credit balance in allowance with terms to bad debts is

= $4,500 - $4,000

= $500

Now the net realizable value is

= ($60,000 - $4,000) - ($4,500 - $4,000)

= $56,000 - $500

= $55,500

Hence, the same is to be considered

7 0
3 years ago
The Fed announced in September 2013 that it would postpone winding down its monetary stimulus until the economic recovery was st
kolezko [41]

Answer:

A) interest rates will rise.

Explanation:

When the FED buys US securities it is carrying out an expansionary monetary policy. It reduces the interest rate of US securities so that more investors are willing to sell their US securities to the FED since their rate of return is very small.

If the FED stops buying back US securities, it means that they will stop their expansionary monetary policy, so the FED will start to increase US securities' interest rates. That way investors will be willing to keep their US securities and will not sell them since their rate of return has increased. This increase in the interest rate will lower the price of US securities and decrease the money supply.

3 0
3 years ago
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