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
Artist 52 [7]
3 years ago
11

Wilmur Corporation has announced that it will pay its first annual stock dividend of $1.05 per share exactly two years from toda

y. Analysts estimate that this dividend will grow by 1.5% per year in perpetuity and that the stock has a discount rate of 6%. What is the present value of a share of SETAB stock if you value it based on the discounted dividends investors expect to receive
Business
1 answer:
Novay_Z [31]3 years ago
5 0

Answer:

The price of the stock today is $22.012

Explanation:

The price of the share will be the value of its dividends discounted back to today's value. The constant growth model of the DDM approach will be used as the dividends will grow by a constant percentage in perpetuity. The formula for the constant growth model is,

P0 = D1 / r -g

As the company will pay no dividend in Year 1, D1 will be Zero. Wewill use D2 that will give us the value of stock one year from now. We will discount it back by 1+r to calculate the price today.

P0 = [1.05 / 0.06 - 0.015]  /  (1+0.06)

P0 = $22.012

You might be interested in
Dion has an auto repair business for high-end cars like a Porsche or Ferrari. He wants to market his services to Porsche, BMW, a
lozanna [386]

Answer:

d. classify firms according to their number of customers

Explanation:

Since Dion wants to market his services to these car firms, he should consult for data that can be used to classify firms according to the customers that they have.

It has been stated clearly that people have to drive to Lubbock dallas, or Austin to get their cars serviced, so the firms can beclassified according to the number of customers.

3 0
3 years ago
Clever Computers has a five-day workweek and pays the office staff $3,050 each week. If the month ends on a Thursday, the adjust
Oksana_A [137]

Answer: The correct answer is b.$3,050.

Explanation: Clever Computers has a five-day workweek and pays $3,050 each week. The payment will only occur at the end of the workweek when the staff have earned the wages. However, the month ended on Thursday, meaning that the staff have only worked for four-day workweek. They have therefore earned $2,440 (4/5*$3,050) at the end of the month but that payment is not due because the 5-day workweek has not been completed. The complete journals the company would raise would be Debit Wages (overhead) $2,440, Debit Wages receivable $610 and Cr Wages payable $3,050.

When it is next month after the five-day workweek has been completed, the company would Dr Wages Payable $3,050 and Credit Cash $3,050 to make the payment.

4 0
3 years ago
What gathers product details and issue resolution information that can be automatically generated into a script for the represen
Alexus [3.1K]

Answer:

Call Scripting System

Explanation:

The Call Scripting System is frequently used by telemarketers among others when attending to contacts, clients or customers. The call script also referred to as the Cold Calling Script makes use of logic, correct wordings or talking points to assist an agent when dealing with a prospective customer.

These scripts are ideal because they can be integrated into telephony and Interactive Voice Response (IVR) Systems to ensure that an agent gets handy and appropriate information about a customer or client.

The Call Scripting System is widely used across call centres and Customer Satisfaction Centres. An advantage of this system is that it guarantees Consistency in customer data information that is being used to issue resolutions to clients irrespective of the agent on Customer Service Duty.

5 0
3 years ago
What does a company's customer service department do?
sammy [17]

Answer:

B. Interact with customers after they have purchased the product.

Explanation:

It is the duty of the Customer services department to cater to the all customer feedbacks and requirements.

The retention of the customers and attracting new customers depends on the quality of the service provided by the customer handling.

5 0
3 years ago
Which statement best describes the term insurance?
olchik [2.2K]
B) It is a protection that guarantees to pay you in the event of financial losses.
8 0
3 years ago
Read 2 more answers
Other questions:
  • On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note,
    10·1 answer
  • Landis Company purchased $3,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with interest payable on July 1 an
    5·1 answer
  • White Company manufactures furniture. Assume the following information: Manufacturing overhead is allocated based on machine hou
    10·1 answer
  • An excess of merchandise exports over merchandise imports results in a balance of trade deficit. True False
    14·1 answer
  • The total factory overhead for Rowland Company is budgeted for the year at $652,000 and divided into two departments: Fabricatio
    10·1 answer
  • A revenue tariff is designed to assist more efficient domestic producers, whereas a protective tariff is designed to promote imp
    6·2 answers
  • Marianne's Chocolates sell well in the U.S. at a price of $24 per pound, and she has overproduced one kind of chocolate bar. Mar
    7·1 answer
  • Andy kaplan is a foreman for jcp enterprises, a regional construction company. he recently ordered some plumbing supplies from t
    7·1 answer
  • Equipment which cost $446,000 and had accumulated depreciation of $248,000 was sold for $222,000. This transaction should be sho
    11·1 answer
  • In a Word document,respond to the question below in 5 complete sentences. Once completed, submit your Word document in the Schoo
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!