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Marianna [84]
3 years ago
9

The Red Bud Co. pays a constant dividend of $1.80 a share. The company announced today that it will continue to do this for anot

her 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7.4 percent?
Business
1 answer:
Naddika [18.5K]3 years ago
8 0

Answer:

One share of this stock worth today if the required rate of return is 7.4 percent is $ 3.24

Explanation:

According to the details the dividend for the next 2 years = $1.80 a share and the required return is=7.40%.

Hence to calculate current price of stock we have to use the following formula:

current price= present value of future cash flows

current price=$1.80/1.074 + $1.80/1.074∧2

current price= $ 3.24

current price of stock is $ 3.24

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Answer:

If Mike was a real estate broker that wants to work independently, he can, but real estate agents cannot work independently, they must work for a real estate broker.

Since Mike works along with other sales associates and broker associates in a company, the company must be registered. All real estate companies must be registered in every single state that they do business in.

4 0
2 years ago
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vladimir1956 [14]

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3 years ago
If you get equity funding for your business, what will you have to do?
cestrela7 [59]

Answer:

A pay back the investors with interest I believe

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2 years ago
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Answer:

At least during the last couple of decades, service firms tend to generate sustained growth while manufacturing firms do not.

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Another thing that helps the growth of service firms is that when manufacturing firms or agricultural firms grow, they need more services, so service firms will grow even more.

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