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Sladkaya [172]
3 years ago
5

Future Motors is expected to pay a $3.30 a share annual dividend next year. Dividends are expected to increase by 3.75 percent a

nnually. What is one share of this stock worth to you today if your required rate of return is 22 percent
Business
1 answer:
Alborosie3 years ago
3 0

Answer:

One share of this stock worth to you today is $18.08

Explanation:

According to the question, we have the following data:

D1 = $3.30

g = 0.0375

Ke = 0.22

one share of this stock worth to you today = P0

Hence to calculate the P0 we have to use the following formula:

Ke = D1/P0 + g

0.22 = 3.3/P0 + 0.0375

P0 = $18.08

One share of this stock worth to you today is $18.08

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german

Answer:

See below

Explanation:

Given the above, we will use the below to get the factory overhead

Ending finished goods = Opening balance + Direct materials + Direct labor + Factory overhead - Goods finished during the month

Fixing the values, we will have

= $14,600 + $91,700 + $186,600 + Factory overhead -

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3 years ago
Ben is a manager and has many responsibilities to fulfill. What should he do to maintain a proper work-life balance?
san4es73 [151]

Answer: Option A

Explanation: Determine priorities and set realistic goals

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While shopping for back-to-school clothes, Josie uses apps on her smartphone to comparison shop, and to obtain coupons and fashi
MatroZZZ [7]

Answer:

The correct option is

D : Technological

Explanation:

Technology such as information and communication  technology or ICT has  made a significant impact in the marketing environment as it can be used to fetch relevant information regarding price and other information relevant before a purchase order is made.

4 0
4 years ago
When using a ban or quota to correct the common resource problem, the cost that rule-breakers expect to face depends on the\
Ede4ka [16]

When using a ban or quota to correct the common resource problem, the cost that rule-breakers expect to face depends on the-----punishment for rule-breaking and the likelihood of being caught and punished.

What are the main problems with resource use?

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6 0
1 year ago
Your best friend wants to borrow $2000 from you today for an emergency purchase they need to make that requires a cash payment.
kvasek [131]

Answer:

a. It is not a fair deal for me.

The question is how much is $1,000 today when received in 12 months' time from now.  The present value of $1,000 at 5% effective interest rate is $952 ($1,000 * 0.952).  The other repayment of $1,100 in 2 years' time from now is worth $997.70 today at the 5% effective interest rate.  This implies that my friend is repaying me $1,949.70 in present value terms.

For friendship sake, I may lend her the money, but in economic analysis terms, the NPV value will yield a negative value of $50.30 ($2,000 - $1,949.70).  My friend is not actually paying me back the amount I would lend to her.  She is paying me less than I actually would lend to her.

b. Cash Flow Diagram:

                 Year 1             Year 2

                    F1                F2

                 $1,000          $1,100     (Inflows)

Fo⇵.................⇵.......................⇵...........................⇵n period

Year 0

$2,000   (outflows)

Explanation:

The cash flow diagram for this loan is the graphical representation of the timing of the cash flows with a clear marking of the repayments made by my best friend in two instalments and the $2,000 that I lent to her.  This cash flow diagram presents the flow of cash as arrows on a timeline scaled to the magnitude of the cash flow, where outflows are down arrows and inflows are up arrows.

The Net present value (NPV) of this loan shows the difference between the present value of repayments by my best friend and the present value of $2,000 that I lent to her over a period of 2 years. To obtain this difference, the present values of cash inflows  of $1,000 in a year's time and $1,100 in two years' time are determined using the discount factor table based on the given interest rate of 5%.

6 0
4 years ago
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