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Pepsi [2]
3 years ago
9

Kay's Sewing Loft is going to reduce its annual dividend by 10 percent a year for the next two years. After that, it will mainta

in a constant dividend of $2 a share. Last year, the company paid an annual dividend of $3 per share. What is the market value of this stock if the required return is 13.7 percent? Group of answer choices
Business
1 answer:
beks73 [17]3 years ago
5 0

Answer:

The answer of the following question is $ 25.711

Explanation:

Dividend (D0)= $ 3 per share

D1 = $ 3 * (1 - 0.10) = 2.7 per share

D2 = $ 2.7 * (1 - 0.10) = 2.43 per share

P0 = $ 2 / 0.137 = $ 14.598

Market value of this stock = D1 * PVF 1 + D2 * PVF2 + P0 * PVF2

= 2.7 * 1/(1+0.137) + 2.43 * 1/(1+ 0.137)^2 + 14.598 * 1/(1+ 0.137)^2

= 3.699 + 3.141 + 18.871

= $ 25.711

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Jacob is reading a great thriller. The table shows a proportional relationship between the number of pages he reads and the numb
grigory [225]

Answer:

Constant of proportionality in pages per hour = 14 pages in 1 hour

Explanation:

Given:

Hour 2 Number of pages 28

Hour 3 Number of pages 42

Find:

Constant of proportionality in pages per hour

Computation:

Number of pages read in first week = 28 / 2

Number of pages read in first week = 14

Number of pages read in second week = 42 / 3

Number of pages read in second week = 14

Constant of proportionality in pages per hour = [Number of pages read in first week + Number of pages read in second week] / 2

Constant of proportionality in pages per hour = [14 + 14] / 2

Constant of proportionality in pages per hour = 14 pages in 1 hour

4 0
3 years ago
What are the disadvantages of international trade?
Phoenix [80]

Answer:

It enables a country to obtain goods which it cannot produce or which it is not producing due to higher costs, by importing from other countries at lower costs. (iii) Specially Foreign trade leads to specialisation and encourages production of different goods in different countries.

Explanation:

inorder to minimize the disadvantage , there should be privacy maintainence in the intellectual property, there should be balanced in domestic and international trade. the over use of natural resources should be controlled. there should be proper checking of the good and services before trading them inside country or in foreign country, etc

7 0
3 years ago
What is company culture? what role does it play a small company's success? what threats does rapid growth pose for a company's c
attashe74 [19]
The way a company goes about their business and their mission statement has a lot do with how company culture is set up.In basic terms it is the way things are done

4 0
3 years ago
Which steps should marketers follow when using the objective-and-task method to determine a budget?
levacccp [35]

The steps that marketers should follow are identify cost of necessary communications, compare budget to that of competitors and establish set of communication objectives.

<h3>What is communication?</h3>

The traditional definition of communication is the transfer of information. The phrase could be used to describe the transmission's message or the field of study that looks into it. There are several disagreements over the precise definition of it. This justification suggests that one definition of communication might be the process of mutual understanding being established between things or groups through the use of signs, symbols, and semiotic customs. It's important to distinguish between non-verbal communication, which can include things like gestures and facial expressions, and verbal communication, which happens through the use of words. Models of communication provide a detailed description of the numerous stages and parties involved in communication. Numerous academic fields focus on communication. Information theory examines how information is generally quantified, stored, and transmitted.

To learn more about communication, visit:

brainly.com/question/29559096

#SPJ4

8 0
1 year ago
Grant Corporation is looking to purchase a building costing $900,000 by paying $300,000 cash on the purchase date, and agreeing
Kazeer [188]

Answer:

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