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
asambeis [7]
3 years ago
7

Free Motion Enterprises paid a $2.20 per share annual dividend last week. Dividends are expected to increase by 3.75 percent ann

ually. What is one share of this stock worth to you today if your required rate of return is 15 percent?
Business
1 answer:
Tems11 [23]3 years ago
6 0

Answer:

$20.29

Explanation:

The computation of the today share price is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend

= $2.20 + $2.20 × 3.75%

= $2.20 + 0.0825

= $2.2825

The other items values would remain the same

So, the today price would be

= $2.2825 ÷ (15% - 3.75%)

= $2.2825 ÷ 11.25%

= $20.29

You might be interested in
Danny "Dimes" Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he
Nina [5.8K]

Answer:

To calculate the elasticity of demand, we need to use mid point elasticity theory.

According to mid point theory,

Ed = [(Q2 - Q1) / {(Q1 + Q2) / 2}] / [(P2 - P1) / {(P1 + P2) / 2}]

Where, Ed = Elasticity o demand

Q1 = Initial quantity = 100

Q2 = New Quantity = 300

P1 = Initial price = $2.75

P2 = New price = $2.25

Ed = [(300 - 100) / {(100 + 300) / 2}] / [(2.25 - 2.75) / {(2.75 + 2.25) / 2}]

Ed = - 5.

a. So, the elasticity of demand is - 5 or in absolute term 5.

b. As the value of elasticity is more than 1, that means, the elasticty over the price range in elastic.

c. From theory, we knew that, when the demand is elastic, then a decrease in price causes a increase in total revenue. Because, as the demand elasticity is elastic, so the increase in output is higher than decrease in price.

Total revenue will increase

8 0
3 years ago
The following information pertains to the West Division of Burger Company:
GenaCL600 [577]

Answer:

D) $4,550

Explanation:

Contribution margin = Net Sales - Total Variable cost

Net sales                             $6,000

Les: Variable costs:

Cost of merchandise sold  $1,000

Operating expenses          <u> $450  </u>

Contribution Margin            $4,550

All other costs are fixed cost which are not used in contribution margin calculation.

So the correct answer is D) $4,550.

3 0
3 years ago
What are the pros and con's for the arrive alive campaign?
Elena-2011 [213]
The Arrive Alive campaign was launched to prevent road accidents or at least lessen the instances of accidents due to drunk driving and reckless driving.

The advantages of this campaign are:

1. It promotes awareness among drivers to drive safely. 
2. It educates drivers on the rules and safe acts when on the road. 

The disadvantages of this campaign are:

1. It does not completely eliminate the risk of accidents due to drunk and reckless driving. It merely 'educates' the drivers about safe acts. 
2. It still allows the drivers to drink and drive but at 'allowable alcohol level' which does not help at all.

In the end, the Arrive Alive campaign failed. 
3 0
3 years ago
Read 2 more answers
What is the impact of inflation on business cycles?​
harkovskaia [24]

Answer:

Inflation is the rise in the price of goods and services in an economy over a certain period. Inflation that is controlled and low generally helps an economy recover from a recession and results in increases in employment

Explanation:

mark me brainliest

4 0
2 years ago
Read 2 more answers
A share stock is a small piece of ownership in a company<br> Ture or false
e-lub [12.9K]

Securities that represent part ownership or equity in a corporation

ture


8 0
3 years ago
Read 2 more answers
Other questions:
  • ________ is a promotional tool in which a person communicates one-on-one with potential customers.
    5·1 answer
  • Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $
    6·2 answers
  • Which of the following are sources of​ income-based payments that domestic residents make to​ foreigners? ​(Check all that apply
    6·1 answer
  • Jack and Scotty begin negotiations where Scotty will give Jack hockey lessons for a certain amount of money per week. While they
    10·1 answer
  • The head of ABC Company announces that the company is going to start a weekend project teaching self-defense techniques to under
    12·1 answer
  • The owners of Arthouse Inc., a national artist supplies chain, are contemplating purchasing Craftworks Inc, a smaller chain. Art
    9·1 answer
  • What is 40 divided by 31
    8·2 answers
  • 31. A portfolio manager in charge of a portfolio worth $10 million is concerned that stock prices might decline rapidly during t
    13·1 answer
  • 1) A global company can be headquartered anywhere, but usually most of its employees come
    7·1 answer
  • A jewelry manufacturer incurred the following costs: 15,000 units produced with costs of $557,500, and 5,000 units produced with
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!