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Marizza181 [45]
3 years ago
7

is expected to pay a dividend of $2.60 and $2.24 over the next two years, respectively. After that, the company is expected to i

ncrease its annual dividend at 2.8 percent. What is the stock price today if the required return is 10.2 percent?
Business
2 answers:
Natalka [10]3 years ago
7 0

Answer: The stock prices for today are $35.14 and $30.27

Explanation:

Stock Price(P) = D1/{r-g}

D1 = $2.6

D2 = $2.24

r = 10.2%

g = 2.8%

P1 = 2.6/(0.102 - 0.028)

P1 = 2.6/0.074

P1 = $35.14

P2 = 2.24/(0.102 - 0.028)

P2 = 2.24/0.074

P2 = $30.27

Romashka-Z-Leto [24]3 years ago
5 0

Answer:

$29.13

Explanation:

first we need to calculate the growing perpetuity value for year 2:

= dividend / (discount rte - growth rate) = $2.24 / (10.2% - 2.8%) = $2.24 / 7.4% = $30.27

Now we have to calculate the present value of the dividends for the next two years and the growing perpetuity:

present value = ($2.60 / 1.102) + ($2.24 / 1.102²) + ($30.27 / 1.102²) = $2.36 + $1.84 + $24.93 = $29.13

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wariber [46]
A board of directors<span> is elected by the stockholders of a corporation to oversee its general operation and set long-term objectives.  A board of directors can serve for a for-profit business, non-profit business, or on a government agency. The board of directors are voted in and recognized as important decision  makers. </span>
8 0
3 years ago
A service was performed for a client with payment due in 30 days what accounts are affected
marshall27 [118]

Answer:

b) debit accounts receivable, credit capital

Explanation:

Performing service is part of normal business activities. It generates revenue for the business.

Once a service has been performed, revenue increases. Revenue is an equity account (it increases the owner's equity). An increase to an equity account is recorded by crediting the account.

The payment will be received in 30 days. This is an increase in accounts receivables ( asset account). An increase in assets is recorded as a debit.

3 0
2 years ago
Good X and Good Y are related goods. When the price of Good X rises by 20 percent, the quantity demanded for Good Y falls by 40
ch4aika [34]

Answer:

-2

Explanation:

Good X and Y are related goods

When the price of Good X rises by 20 percent the quantity for Good Y falls by 40 percent

Therefore the cross price elasticity can be calculated as follows

= -40/20

= -2

Hence the cross price elasticity is -2

4 0
3 years ago
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, a
umka2103 [35]

Answer:

<u>Cash Flow</u>

year 1: cash generated in operating activities:    35,000

year 2: cash used in operating activities (28,000)

<u>Receivables:</u>

year 1: 23,000

year 2: 40,000

<u>Net Income</u>

year 1: 32,000

year 2: 59,000

Explanation:

<u></u>

Cash flow:

<u>operating activities: year 1</u>

collected from client                    170,000

salaries paid to employees        (100,000)

utilities                                           (35,000)

insurance policy                           (63,000)

cash used in operating activities (28,000)

<u>operating activities: year 2</u>

collected from client                     200,000

salaries paid to employees           (110,000)

utilities                                             (55,000)

cash generated in operating activities:    35,000

receivable:

billed - collected

year 1 receivables 193,000 - 170,000 = 23,000

year 2 receivables 240,000 - 200,000 = 40,000

<u>Income Statement year 1</u>

fees revenues 193,000

salaries           (100,000)

utilities            (40,000) (incurred cost)

insurance        (21,000)  (63,000 for three years, the value of 1 year is 21,000)

net income          32,000

<u></u>

<u>Income Statement year 2</u>

fees revenues 240,000

salaries           (110,000)

utilities            (50,000) (incurred cost)

insurance        (21,000)  (63,000 for three years, the value of 1 year is 21,000)

net income      59,000

5 0
2 years ago
What types of crime you experience most frequently?​
Ghella [55]

Answer:

well if you live in a safe country

Explanation:

u wont experience any crime

6 0
3 years ago
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