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maksim [4K]
2 years ago
9

Michael's, Inc., just paid $1.90 to its shareholders as the annual dividend. Simultaneously, the company announced that future d

ividends will be increasing by 4.2 percent. If you require a rate of return of 8.5 percent, how much are you willing to pay today to purchase one share of the company's stock?
Business
1 answer:
sergij07 [2.7K]2 years ago
6 0

Answer:

$44.18

Explanation:

The price can be easily calculated by the simple formula,

Price of stock = Dividend / (rate of return - growth of dividend)

Hence,

Price of stock = 1.90 / (0.085 - 0.042)

Price of stock = $44.18.

Hope you understand this simple equation

Thanks buddy.

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All of the following are measures of GDP except the total: a. income from all production in the economy. b. expenditures on all
antoniya [11.8K]

Answer:

 c. expenditures of all businesses in the economy.

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP can be calculated in 3 ways:

1. Expenditure approach : consumption spending + Investment spending + Government Spending + Net Export

expenditures of all businesses in the economy is used in the calculation of GDP using the expenditure approach.

2. Income approach: it is the sum of all income from all production in the economy.

3. Value added approach: it is sum of the value of all final production.

I hope my answer helps you

5 0
3 years ago
Which source is not valid for a lookup list <br> A.query<br> B.table<br> C.custom list<br> D.report
IrinaK [193]

Answer:

query is the anwser and please give me 5 stars

6 0
3 years ago
Read 2 more answers
On December 31, 2016 before adjusting entries, Accounts Receivable for Nickolas Company had a debit balance of $200,000, and the
Karo-lina-s [1.5K]

Answer:

b. The balance of the Allowance for Doubtful Accounts will be $22,000 after adjustment.

Explanation:

If credit losses are estimated at 1% of credit sales than balance of allowance for doubtful account after adjustment will be = $6,000 + $1,600,000 * 1%

= $6,000 + $16,000

= $22,000

4 0
2 years ago
Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new mod
lys-0071 [83]

Answer:

$126

Explanation:

We can calculate the amount Mira can pay for the synthetic material per unit (refrigerator) and meet its profitability goal by deducting the estimated profit and then all the cost from the selling price per unit.

Selling price per unit                                        $260

Less

estimated return (260x30%) =                    ($78)

Labor costs                                                    ($32)

Overhead costs                                            ($24)

Material                                                              $126      

Amount Mira can pay for Synthetic material per unit is $126

               

6 0
2 years ago
You find a zero coupon bond with a par value of $10,000 and 30 years to maturity. The yield to maturity on this bond is 5.2 perc
muminat

Answer:

The price of the bond is 2143,67

Explanation:

A zero coupon bond is a bond that does not pay coupon payments and instead pays one lump sum at maturity.

Zero coupon bond value= F/(1+r)^t

F = face value or a par value

r= rate of yield per period

t= time to maturity ( in periods)

Replacing

F = $10,000

We assume semiannual compounding periods

r= 5.2/2=2.6

t= 30 x 2=60

Zero coupon bond value= $10,000/(1+0.026)^60

Value = 2143,67

7 0
3 years ago
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