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pav-90 [236]
3 years ago
8

A share of common stock just paid a dividend (D0) of $1.50. If the expected long-run growth rate for this stock is 5%, and if in

vestors' required rate of return is 11.5%, what is the current stock price?
Business
1 answer:
skelet666 [1.2K]3 years ago
8 0

Answer:

Current stock price = $24.23

Explanation:

Stock price under Discounted Model:

P0 = D1 \div(Ke - g)

P0 = Current Market price of the share

g = Growth rate = 5.0%

Ke = Cost of equity = 11.5% p.a

D1 = Expected dividend = $1.50 (1 + 0.05)= $1.575

P0 = $1.575 / (11.50% - 5.0%)

Current stock price = $24.23

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Indentures usually bound indentured servants for periods of from five to seven years. question 3 options:
OLEGan [10]
Hey There!

Here is your answer:

Your answer is: False!

Indentured servants are slaves that are working to pay off debt. Which means indentured servants can work more than 7 years you pay off debt for whatever they own to the person!

Your answer is False!

Hope this helps!
3 0
3 years ago
During 2020, Bayside Inc. has 9% cumulative non-participating preferred stocks with a total par value of $300,000 and common sto
Lapatulllka [165]

Answer:

Date - December 14, 2020

Debit  : Dividend $16,000

Credit : Shareholders for dividends $16,000

Date - January 16, 2021

Debit : Shareholders for dividends $16,000

Credit : Cash $16,000

Date - December 12, 2021

Debit  : Dividend $62,000

Credit : Shareholders for dividends $62,000

January 15, 2022

Debit : Shareholders for dividends $62,000

Credit : Cash $62,000

Explanation:

Dividends are initially declared before they are paid to the respective shareholders. So it is important to first record the journal at the <em>declaration date</em> of the dividend, then the <em>payment date</em> of the dividend as shown above.

7 0
3 years ago
Which of the following options to buy a health insurance plan is BEST if you want to get savings on monthly premiums and other c
Paha777 [63]

Answer:

The correct answer is letter "E": Enrolling in a marketplace plan.

Explanation:

Health insurance Marketplace is a service managed by the government that allows individuals, families, and small businesses to find affordable health care insurances. This service aims for everybody to have a health insurance plan regardless of their income.

6 0
3 years ago
The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The current owner h
charle [14.2K]

Answer: The answer is given below

Explanation:

Here , we are going to apply the present value of annuty formula.

a. Social Opportunity cost = $1.1 Million

The Yearly cash flows = $110,000

Time (n) = 20 years

The Discount rate (R) = 4%

Net benefits= Present value of cash inflows - the intial socail opportnity cost

Net benefits= Yearly cash flow × (1 - 1/(1+R)^n) / R - 1100000

Net benefits = 110000 × (1 - 1/1.04^20)/0.04 - (1100000)

= $394936

b. We will use the formula for present value of an annuity with the growth rate in benefits as 2 percent.

Firstly, dg= (0.04 - 0.02)/ (1+0.02)

= 0.01961

PV(benefits) = [($110,000)÷ (1+0.02)][1-(1+dg)-20]/dg]

= $1,770,045

NPV = $1,770,045 - $1,100,000= $670,045

7 0
3 years ago
Bob and Lisa are both married, working adults. They both plan for retirement and consider the $2,000 annual contribution a must.
ikadub [295]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
6 0
3 years ago
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