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Paha777 [63]
2 years ago
6

MTB Industries currently pays an annual dividend of $1.50 per share, and it is expected that these dividend payments will contin

ue indefinitely. If the firm's equity cost of capital is 12%, the value of a share of MTB stock is closest to:
Business
1 answer:
Sergio [31]2 years ago
8 0

Answer:

The value of MTB stock is closest to $12.50

Explanation:

The value of MTB stock is calculated using the below formula for the present of an annuity in perpetuity=dividend/expected rate of return

The expected rate of return in this instance is the equity cost of capital

Value of MTB stock=$1.50/12%

Value of MTB stock=$12.5

A rational investor a price for a stock today that reflects the future cash flows payable by a way of dividends payments promised by such stock considering the investor's rate of return as done above

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Suppose that Spain and Germany consider trading shoes and jeans with each other. Spain can gain from specialization and trade as
lidiya [134]

Answer:

c. 12 pairs of jeans per pair of shoes

Explanation:

Suppose that Spain and Germany both produce jeans and shoes.

Spain's opportunity cost of producing a pair of shoes is 5 pairs of jeans Germany's opportunity cost of producing a pair of shoes is 10 pairs of jeans.

By comparing the opportunity cost of producing shoes in the two countries, you can tell that__Spain__ has a comparative advantage in the production of shoes and _Germany__has a comparative advantage in the production of jeans.

Similarly, Germany can gain from trade as long as it receives more than 10 pair of shoes for each pair of jeans it exports to Spain.

Based on your answer to the last question, which of the following terms of trade (that is, price of shoes in terms of jeans) would allow both Germany and Spain to gain from trade?

c. 12 pairs of jeans per pair of shoes

5 0
3 years ago
The probability of completing a project in a specified amount of time is being calculated. For a particular path through the pro
lora16 [44]

Answer: 2). z-value

Explanation: the z- value is a statistical tool used to measure the deviations of the standard deviation above or below the population mean,it can also be placed on a normal distribution curve.It used to calculate the probability of a value appearing within the normal distribution curve,it can also be used to determine the percentage of people participating in a given activity like the time it takes to complete a given task/ project by different persons.

6 0
3 years ago
Which is a requirement for an acceptance?
Effectus [21]

Answer:

Ohhh, this is business related. The requirements for an acceptance, in economics/business, are that both people in the agreement must do what they requested, and the offer must be made with the intent to follow through on the agreement. You can look at Google for a more in depth explanation, but this should help. :)

6 0
3 years ago
In order to save $57,000 in five years, John will start saving money next month. He already has $10,000 in his account. The acco
Jlenok [28]

Answer:

He has to deposit $750.46 every month into the account

Explanation:

Future value id the accumulated amount of principal and compounded interest at the end of a specific investment period.

Assuming interest is compounding every month, use following formula to calculate the amount of payment each month.

FV = PV x ( 1 + r )^n + A x ( ( 1 + r )^n - 1 ) / r

$57,000 = $10,000 x (1+0.1%)^5x12 + A x ( ( 1+0.1% )^5x12 -1 ) / 0.1%

A = { $57,000 - [ $10,000 x ( 1 + 0.001 )^60 ] } / [ ( ( 1 + 0.001 )^60 )-1 / 0.001 ]

A = ( $57,000 - $10,618.05 ) / 61.80471

A = $46,381.95 / 61.80471

A = $750.46

3 0
3 years ago
The following information was used in reconciling the bank account for Minerva Company on October 31: Balance per bank, October
Strike441 [17]

Answer: A $37.280.

Explanation:

Adjusted book balance will include those transactions made or charged by the bank for/to the company so will include;

= Balance per books - Insufficient funds check - Utility bill paid by bank  - Check printing charge

= 40,000 - 1,400 - 1,240 - 80

= $37,280

3 0
2 years ago
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