The solution (x,y) to a system of equations is the point where they

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth

Grace [21]

Answer:

current share price is $71.05

Explanation:

given data

grow at a rate = 20 percent

time = 3 year

growth rate falling off = 8 percent

dividend = $1.45

solution

we get here price of the stock in Year 3 that is 1 year before the constant dividend growth that is

P(3) = D(3) × (1 + g) ÷ (R - g) .............1

P(3) = D0 (1 + g1)³ × (1 + g2) ÷ (R - g)

P(3) = $\frac{1.45\times 1.20^3 \times 1.08}{0.11-0.08}$

P(3) = $90.206

and

then price of the stock today is present value of first three dividends + present value of the Year 3 stock price

so price of the stock today is

P(0) = $\frac{1.45(1.20) }{1.11} + \frac{1.45(1.20)^2}{1.11^2} +\frac{1.45(1.20)63}{1.11^3} +\frac{90.2016}{1.11^3}$

P(0) = $71.05

4 0

2 years ago

Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resourc

Vaselesa [24]

Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resources needed to produce goods and services. Based on this information, we can thus say that Global Blenders is a Distributor not a supplier.

<h3><u>Explanation:</u></h3>

There are three important terms associated with the supply chain management. They are distributors, suppliers and wholesalers. Distributors are those who are directly related with the manufacturers and they represent the manufacturers in some way. Distributors have buying agreements that includes only certain number of members and also they usually cover certain specific areas.

Suppliers are those who provide goods and services to the wholesalers, retailers and also to the distributors. They usually have a very close relation with the distributors and provide them the goods and services they need.Global Blenders sells goods and services but they are not responsible for providing resources for the purpose of producing goods and services. Thus, Global Blenders is a Distributor not a supplier.

5 0

3 years ago

Read 2 more answers

The key to understanding the money creation process is the fact that:______.a. since the money supply excludes cash but includes

nataly862011 [7]

Answer:

c. whenever banks create financial assets for themselves, they create financial liabilities for individuals, and those financial liabilities are considered money

Explanation:

c. whenever banks create financial assets for themselves, they create financial liabilities for individuals, and those financial liabilities are considered money

3 0

3 years ago

Read 2 more answers

What is the total annual dividend received from owning 75 shares of stock A, if Company A issues a $0.20 quarterly dividend to i

creativ13 [48]

The total annual dividend received is $60.

The computation of the total annual dividend is as follows:

Given that

There are 75 shares.

And, the quarterly dividend is $0.20.

So,

The annual dividend should be

= $0.20 × 4 quarters

= $0.80

Now the annual dividend is

= 75 shares × $0.80

= $60

Therefore we can conclude that the total annual dividend received is $60.

Learn more about the dividend here: brainly.com/question/13535979

8 0

3 years ago

Your older and wiser sibling has offered to loan you some much needed money to help cover textbook expenses this semester. Since

masya89 [10]

Answer:

80 years

Explanation:

Data provided in the question:

Simple interest rate charged = 1.25% = 0.0125

Now,

Let principal amount be '$x'

we know, Simple interest = Principal × Interest Rate × Time

Since the debt is doubled this means the interest is equal to the principal amount

Therefore,

$x = $x × 0.0125 × Time

or

1 = 0.0125 × Time

or

Time = 1 ÷ 0.0125

or

Time = 80 years

3 0

2 years ago