1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Valentin [98]
2 years ago
10

Suppose MBI Co. is expected to pay a $0.60 dividend per share next year. Wall Street analysts project the stock will sell for $3

5.75 in one year. You have been earning 11.5% on your other investments and you believe this one should give you the same return. What is the most you can pay for MBI today in order for you to earn your required return?
Business
1 answer:
neonofarm [45]2 years ago
3 0

Answer:

$32.60

Explanation:

Data provided in the question:

Dividend paid per share = $0.60

Market price per share = $35.75

Required returns, r = 11.5% = 0.115

Now,

Current price = [ Dividend paid per share + Market price per share ] ÷ ( 1 + r )

= [ $0.60 + $35.75 ] ÷ ( 1 + 0.115 )

= $36.35 ÷ 1.115

= $32.60

You might be interested in
On June 8, Alton Co. issued an $88,500, 7%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends Ju
Furkat [3]

Answer:

Amount of interest revenue recognized =\frac{2065\times 98}{120}=$1686.41

Explanation:

Principal amount P = $88500

Rate of interest r = 7 %

Total number of days = 120

So interest =\frac{principal\ amount\times rate\times time}{100}=\frac{88500\times 7\times 120}{360\times 100}=$2065

Number of days from 8 june to 30 june = 30-8 = 22 days

So left days = 120-22 = 98 days

So amount of interest revenue recognized =\frac{2065\times 98}{120}=$1686.41

3 0
3 years ago
A father and his son are celebrating the father's 75th birthday. Drink for drink, who will most likely have a higher BAC ?
Temka [501]
The one who will most likely have a higher BAC is the father because a person who is older will most likely have the higher BAC, as the father is already seventy five and much older to his son, he will be therefore have a higher BAC compared to his son.
4 0
3 years ago
Read 2 more answers
Explain why it might be difficult for a new,
statuscvo [17]

Answer:

The Threat of New Entrants exerts a significant influence on the ability of current companies to generate a profit Gross Profit Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin

Explanation:

3 0
2 years ago
In 2014, short-term interest rates were near zero, and yet the economy was still sluggish with low rates of economic growth and
LUCKY_DIMON [66]
I don’t even know to be honest only commenting to get some points ....:
6 0
3 years ago
aagen Inc. is a merchandising company. Last month the company's cost of goods sold was $92,000. The company's beginning merchand
Paladinen [302]

Answer:

the company purchase is $94,000

Explanation:

The computation of the total amount of the company merchanise purchase for the month is shown below:

Cost of goods sold = Beginning merchandise inventory + Purchases − Ending merchandise inventory

$92,000 = $14,000 + Purchase - $16,000

So, the purchase is

= $92,000 + $16,000 - $14,000

= $94,000

Hence, the company purchase is $94,000

4 0
2 years ago
Other questions:
  • If you detect a free rider on your team, the best way to remedy the situation is to: question 2 options: stop carpooling with me
    10·1 answer
  • Assume $1,000 is deposited in a checkable account by Mr. Y in Bank A. Assume further that the reserve requirement is 0.10. The i
    9·1 answer
  • Division of labor increases in __________. As the food supply grows, not everyone needs to be engaged in food production. Some p
    15·1 answer
  • The federal reserve can increase the money supply by buying bonds. true or false?
    10·2 answers
  • Exercise 4-09 Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales $1,300,000 Write-off of
    10·1 answer
  • On January 1, 2020, a customer purchased a new $29,400 automobile, making a downpayment of $840. The customer signed a note indi
    12·1 answer
  • Do you think it is possible for a bad strategy to be implemented and executed well and
    10·1 answer
  • Kyla goes to a car dealership to purchase a new Honda Accord. She is not willing to pay the listed sticker price for the car, an
    14·1 answer
  • Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes t
    7·1 answer
  • Question 1<br> What is the most important question you should have after seeing this ad about a check cashing business?<br> Why
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!