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Reil [10]
3 years ago
9

Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 19.00% for 2 years, af

ter which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price
Business
1 answer:
Contact [7]3 years ago
5 0

Answer:

$38.74

Explanation:

Div₀ = $1.75

Div₁ = $2.0825

Div₂ = $2.4782

Div₃ = $2.6269 and grow at a 6% constant rate forever

required rate of return = 12%

using growing perpetuity formula to determine the terminal value of the stock in year 2 = $2.6269 / (12% - 6%) = $43.78

the stock's current price = $2.0825/1.12 + $2.4782/1.12² + $43.78/1.12² = $1.86 + $1.98 + $34.90 = $38.74

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The __________ is a market derived interest rate used to discount the future cash flows of the bond. ashworth college
balu736 [363]
<span>The answer to the above question is discount rate. Discount rate is the rate used to discount the future cash flow of a bond. In addition to determining the discount of future cash flows of bonds it is also the interest rate the Federal Reserve uses on loans given to banks through the discount window loan process.</span>
7 0
3 years ago
Indicate whether each of the following is a final​ good, an intermediate​ good, or neither.
butalik [34]

Answer:

  • 1. Coffee beans purchased by a coffee shop   --  intermediate good.
  • 2. One share of Google stock  --   neither.
  • 3. A new pick-up truck purchased by a consumer   --  final good.
  • 4. A new home purchased by a family  --  final good.

Explanation:

  • An intermediate good is a semi-finished good that is used as the inputs of the production and makes them sell and buy the goods. While the final good is one that is finished in processing and is ready to be consumed and those goods that are present in a stocks firm are not used and neither is been developed are google stocks.
7 0
3 years ago
The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original
mariarad [96]

Answer:

Option (C) is correct.

Explanation:

Given that,

Actual direct labor hours = 8,200

Actual rate = $12.40 per hour

Original  production = 1,100 units

Actual units produced = 1,000

Labor  standards = 7.6 hours per completed unit

standard rate = $13.00 per hour

Labor time variance:

= (Standard hours - Actual hours) × Standard rate

= (1,000 × 7.6 - 8,200) × $13

= 7,800 Unfavorable

3 0
3 years ago
Managers at Umbrella Corporation, a firm in East Asia, want to make their company a global leader in business process outsourcin
dezoksy [38]

The should the Umbrella managers look for as they decide where to locate their BPO facilities is an abundance of well-educated English speakers.

<h3>What does well educated mean?</h3>

The term simply implies that a  person of this kind of nature  has a lot of knowledge about a lot of subjects, usually due to the fact that they have studied at college or university.

The speakers and writers of English who have been educated are known to be very verse in English and should be the one employed by this firm.

See options below

Multiple Choice

large, undeveloped plots of land for greenfield projects

many uneducated workers who are highly trainable

plentiful natural resources

an abundance of well-educated English speakers

Learn more about  English speakers from

brainly.com/question/26157848

8 0
2 years ago
An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the y
ANTONII [103]

Answer:

236.25

Explanation:

Calculation to determine X

First step is to calculate the 6 months Yield

6 month Yield=(40/40+20) (80/40+20) (157.60/80+80)+1)

6 month Yield=(40/60) (80/60) (157.60/160)-1

6 month Yield=5%

Second step is to calculate the Annual equivalent

Annual equivalent=(1.05)^2-1

Annual equivalent=10.25%

Third step is to calculate the 1 year yield

1 year yield=(40/50) (80/40+20) (175/80+80) (x/175+75)

1 year yield=(40/50) (80/60) (175/160) (x/250)-1

1 year yield=0.1025

Now Let calculate X

x(0.004667)=1+.1025

x(0.004667)=1.1025

x=1.1025/0.004667

x=236.25

Therefore X is 236.25

7 0
3 years ago
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