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
Dafna11 [192]
3 years ago
11

Spacefood Products will pay a dividend of $ 2.25 $2.25 per share this year. It is expected that this dividend will grow by 3 3​%

per year each year in the future. What will be the current value of a single share of​ Spacefood's stock if the​ firm's equity cost of capital is 10 10​%?
Business
1 answer:
gavmur [86]3 years ago
7 0

Answer:

$32.14 per share

Explanation:

The computation of the current value of the single share is shown below:

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

where,

Current year dividend is $2.25 per share

Required rate of return is 10%

And, the growth rate is 3%

So by placing these items, the current value is

= $2.25 ÷ (10% - 3%)

= $32.14 per share

You might be interested in
Your unemployed friend Seymour sent you a test of his electronic cover letter. You see that he is struggling with the appropriat
Ugo [173]

tell him to put less information with more details.

Instead of putting large amounts of small information in a cover letter, he should be putting small amounts of information with smaller details, a cover letter is explaining you and your backround better to the employers to see if you're what they want, and to get to know your backround better. If Seymour puts his little important details of information he will have a better chance at impressing the employers.

4 0
3 years ago
Read 2 more answers
If the expected path of 1-year interest rates over the next five years is 2 percent, 4 percent, 1 percent, 4 percent, and 3 perc
timofeeve [1]

Answer:A) one year

Explanation: The unbiased expectations theory, also known as the expectation theory aims to estimate how much the short term interest rates will amount to in future. This is based on long term interest rates. Forward rates are used to predict the value of interests in the future based on the values calculated today. A maturity of 1 year has the lowest interest rate because it is not given enough time to grow. Interest rates tend to grow better over a longer period of time. Therefore in terms of expectation theory the longer the maturity the better the chances of interest rate growth.

6 0
3 years ago
An income property generates $9,200 per month, and is valued at $985,000. What is its gross rent multiplier
Alborosie

Answer:

107.07

Explanation:

Calculation for What is its gross rent multiplier

Gross rent multiplier= Income Property value/income property generated per month

Let plug in the formula

Gross rent multiplier= $985,000/$9,200 per month

Gross rent multiplier=107.07

Therefore its gross rent multiplier will be 107.07

8 0
3 years ago
For each of the following independent events, identify the account that would be debited and the account that would be credited.
My name is Ann [436]

Answer:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

Explanation:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

6 0
3 years ago
Identify which principle applies to each scenario by placing the appropriate label next to each scenario.
tatyana61 [14]
<span>Each scenario refers to some label. The labels are placed with a different order. We need to arrange them by checking the possibilities. Labels most probably matches with one scenario each or it can be many. If labels are less in numbers than the scenarios then it can be matched with multiple scenarios.</span>
6 0
3 years ago
Other questions:
  • For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian
    14·1 answer
  • What is the National Labor Relations Board responsible for?
    9·1 answer
  • Xyz corporation has suffered a major downturn in business and will not be able to pay interest on its bonds. this is an example
    12·1 answer
  • Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity d
    5·1 answer
  • You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery
    11·1 answer
  • To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account
    14·1 answer
  • Pacific Ink had beginning work-in-process inventory of $959,660 on October 1. Of this amount, $402,560 was the cost of direct ma
    15·1 answer
  • The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000; Cost of
    15·1 answer
  • Ked what would you do if one of the customers began making off-color jokes that other customers in the bar could hear? rosario m
    15·1 answer
  • in some industries, technology drives globalization because the economies of scale necessary to reduce costs cannot be met by co
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!