1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zaharov [31]
3 years ago
8

Q4) Lohn Corporation is expected to pay the following dividends over the next four years: $13, $9, $6, and $2.75. Afterward, the

company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock 10.75 percent, what is the current share price
Business
1 answer:
Kitty [74]3 years ago
5 0

Answer:

$58.70

Explanation:

The computation of the current share price is shown below:

But before that we need to find out the value after year 4 which is shown below:

Value after year 4 is

= (D4 × Growth rate) ÷ (Required return - Growth rate)

= (2.75 × 1.05) ÷ (0.1075 - 0.05)

= $50.2173913

Now current share price is

= Future dividends × Present value of discounting factor(10.75%,time period)

= $13 ÷ 1.1075 + $9 ÷ 1.1075^2 + $6 ÷ 1.1075^3 + $2.75 ÷ 1.1075^4 + $50.2173913 ÷ 1.1075^4

= $58.70

You might be interested in
A characteristic found only in oligopolies is products that are slightly different. interdependence of firms. break even level o
Delvig [45]

Answer:

The correct answer is the interdependence of firms.  

Explanation:

An oligopoly market is a market structure where there are a few firms. these firms are interdependent. Price and output decisions of a firm affect its rivals. An oligopoly firm faces a downward-sloping demand curve.  

In other market structures like monopolistic or perfect competition, the firms are not interdependent.

7 0
3 years ago
How does the way that a search engine gets and organizes information help you understand why Googling alone is not enough?
bixtya [17]

Answer:

The search engine works through three primary functions,

Crawling, Indexing and Ranking

Explanation:

Crawling is the process in which the server works as a spiders and finds out information relevant for the user. Indexing is the way to store the web page. Ranking is the priority through which websites are displayed. The most matched text with the URLs are displayed first. The content in the website is matched with the relevance and then displayed to the user.

6 0
3 years ago
Misaki, a sales manager at a startup cosmetics company, wants to determine her company’s market potential. She first develops a
Viefleur [7K]

The type of approach Misaki is using to determine her company's market potential is the breakdown approach, used to determine the size of sales forces needed in a company.

<h3 /><h3>Breakdown approach</h3>

Corresponds to a method used to identify an organization's sales force, through projections for future sales and past sales history.

Therefore, in the breakdown approach, the total sales value identified by the sales projection is divided by the sales generated by each sales professional, assuming that each one reaches the same level of productivity.

The correct answer is:

  • Breakdown approach

Find out more information about breakdown approach here:

brainly.com/question/5775960

6 0
2 years ago
You recently were hired as a front line debt collection agent for a debt collection service in Michigan. Your boss assigns you t
____ [38]

Answer:

need

Explanation:

3 0
3 years ago
What's the difference between a checking account and a savings account?
elena-s [515]

Answer:

D. A checking account comes with a credit card.

Explanation:

A checking account is opened to facilitate regular bank transactions such as deposits, withdraws, cash transfers, payments, among others. There are no limits to the number of transactions that one can perform per period. Bank's fee and charges are applicable per transaction. To facilitate payments, withdrawals, and deposits, banks provide debit cards to customers.

Savings accounts are designed to help customers accumulate funds for future use. Banks limit withdrawals and offer interest payments to encourage customers to save. Savings accounts have fewer charges and don't come with debit cards.

6 0
3 years ago
Other questions:
  • New York Bank provides Food Canning, Inc. a $250,000 line of credit with an interest rate of 1.75 percent per quarter. The credi
    9·1 answer
  • The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years,
    10·1 answer
  • The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new
    14·1 answer
  • Universal Containers (UC) wants Lightning Experience enabled employees who have Salesforce user licences to access a Community.
    11·1 answer
  • There are some 200 economic integration agreements around the world today, far more than a few years ago.NAFTA, EU, Asean etc. V
    12·1 answer
  • Why should you purchase insurance?
    5·1 answer
  • A line cook at a restaurant was inspired to become a chef, but he lacked the necessary training. The line cook asked the chef at
    7·1 answer
  • . Which type of credit requires that borrowers carefully manage the debt so it doesn't get out of control? Explain why this type
    12·2 answers
  • Which of the following is not an form of money that was traded
    10·1 answer
  • Perry Mazza wants to borrow $40,000 from the bank. The interest rate is 7% and the term is for 5 years.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!