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
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

You might be interested in
How do working conditions and company's image motivate employees?
Reil [10]

Answer:the working conditions of the place show that it will be easier to work in and that if the company has a good image of themself then you would probably earn more money.

Explanation:

I tried the best I could.

8 0
3 years ago
The following information pertains to Crane Video Company:
Mashutka [201]

Answer:

Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited :                     ($1,300)

Add Unpresented Cheques                                     $591

Balance as per Bank Statement                           $7,263

Adjusting Entries

J1

Bank service charge $28 (debit)

Cash $28 (credit)

J2

Cash $700  (debit)

Note - Receivable Crane  $700 (credit)

J3

Cash  $36  (debit)

Interest Income $36 (credit)

J4

Service Fee $20 (debit)

Cash $20 (credit)

Explanation:

First Update the Cash Book as follows:

<u>Debit :</u>

Cash balance $7,284

Crane $700

Interest $36

Totals $8,020

<u>Credit:</u>

Bank service charge $28

Crane : fee $20

Balance - Up to date $7,972

Totals $8,020

Then, Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited :                     ($1,300)

Add Unpresented Cheques                                     $591

Balance as per Bank Statement                           $7,263

Adjusting Entries

J1

Bank service charge $28 (debit)

Cash $28 (credit)

J2

Cash $700  (debit)

Note - Receivable Crane  $700 (credit)

J3

Cash  $36  (debit)

Interest Income $36 (credit)

J4

Service Fee $20 (debit)

Cash $20 (credit)

7 0
2 years ago
Protectors' Insurance wants to build strong relationships with its customers and is looking to create a more interactive approac
True [87]

Answer: Internet

Explanation:

Online advertising helps organizations find the right audience as the ones who are really interested in the products that are being sadvertised are targeted.

Internet advertising tools such as, social media, display ad and video ads helps the task of reaching ones target audience easier. This can enhance strong relationships with ones customers create a more interactive approach to advertising.

4 0
3 years ago
Which of the following provisions of the Sarbanes-Oxley Act addresses the management assessment of internal controls?
Ainat [17]

Answer:

b. codes of ethics for senior financial officers.

Explanation:

according to the Sarbanes-Oxley act:

- The company should be having an expert who is responsible for the auditing andd the company should name the expert and if they are not having the expert they should give a reason.

- A comapny should have a code andd ethics and it should also be applied to the seniors.

4 0
3 years ago
An informal tool used to organize the accounting information needed to prepare adjusting and closing entries and the financial s
Anton [14]

Accountants usually organize the accounting information on a <u>worksheet </u>when they prepare adjusting and closing entries and the financial statements.

<h3>What is a worksheet?</h3>

A worksheet is a piece of paper used for performing tasks. It can also refer to an Excel sheet. Thus, a worksheet simply means a working paper.

Thus, the informal tool that can be used to organize the accounting information for the preparation of adjusting and closing entries and the financial statements is <u>a worksheet</u>.

Learn more about the worksheet at brainly.com/question/11892503

6 0
2 years ago
Other questions:
  • You are working in an open-plan office. the workstations are badly arranged. you do not have sufficient space to store everythin
    8·1 answer
  • When using the _____ projective technique, participants are presented cards containing various scents, textures, and sounds, and
    13·2 answers
  • Which of the following statements is (are) TRUE?
    9·1 answer
  • Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabil
    15·1 answer
  • Paragon Leasing has been approached by Mid-America Trucking Company (MATC) to provide lease financing for a fleet of new tractor
    10·1 answer
  • A consumer expenditure survey reports the following information on consumer protein spending:201820192020PQPQPQFish$2.001000$2.5
    7·1 answer
  • The country of Bolivia had a Gross Domestic Product of $79 billion in 2016 and a population of 11 million people, the GDP per ca
    12·1 answer
  • This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the cre
    11·2 answers
  • Should you feel bad about quitting your job for more money when you like your job
    12·1 answer
  • West Co. recorded the following inventory information during the month of February:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!