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aev [14]
3 years ago
7

Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will

then cease paying dividends forever. The required return on this stock is 13 percent. What is the current share price?
Business
1 answer:
nata0808 [166]3 years ago
5 0

Answer:

The price of the stock today is $54.61

Explanation:

The stock of this company pays a constant dividend for a defined period of time after equal intervals. Thus, it is just like an annuity. To calculate the price of such a stock, we will use the present value of annuity formula:

Assuming that the dividend is paid at the end of the period.

Present Value of Annuity = Dividend * [(1 - (1+r)^-n) / r]

Where,

  • r is the required rate of return
  • n is the number of years of annuity

The price of the stock today is,

P0 = 8.45 * [(1 - (1+0.13)^-15) / 0.13]

P0 = $54.607 rounded off to $54.61

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6 0
4 years ago
What's the difference between a checking account and a savings account?
elena-s [515]

Answer:

D. A checking account comes with a credit card.

Explanation:

A checking account is opened to facilitate regular bank transactions such as deposits, withdraws, cash transfers, payments, among others. There are no limits to the number of transactions that one can perform per period. Bank's fee and charges are applicable per transaction. To facilitate payments, withdrawals, and deposits, banks provide debit cards to customers.

Savings accounts are designed to help customers accumulate funds for future use. Banks limit withdrawals and offer interest payments to encourage customers to save. Savings accounts have fewer charges and don't come with debit cards.

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3 years ago
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at
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3 years ago
Suppose the city of Austin, TX chooses to regulate the number of street vendors operating near the University of Texas by requir
Dmitrij [34]

Answer:

economic rent of $65,000

Explanation:

Economic rent is the amount of money paid in excess to a factor of production in excess of what is socially optimum

Economic rent = $150,000 - $85,000 = $65,000

Accounting profit= total revenue - explicit cost

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Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

Economic profit = accounting profit - implicit cost

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3 years ago
If an advertiser doesn't want to add remarketing tags to a website, why would Customer Match be a good fit for them?
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The correct answer is: Customer Match relies on your own data instead of a remarketing tag.

INTERPRETATION

If an advertiser doesn’t want to add remarketing tags to a website then Customer Match would be a good fit for them because Customer Match creates a similar audience for you by using the data from your ad accounts and campaigns. This makes the Customer Match data reliable because it uses your own data instead of a remarketing tag.

The Customer Match audience is created from the interests and behavior of the audience similar to your previous website visitors.

Therefore, we can conclude that the correct option is D. If an advertiser doesn’t want to add remarketing tags to a website then Customer Match would be a good fit for them because Customer Match relies on your own data instead of a remarketing tag.

Your question is incomplete, but most probably your full question was:

If an advertiser doesn't want to add remarketing tags to a website, why would Customer Match be a good fit for them?

a. Customer Match allows you to reach people who have been to your website

b. Customer Match allows you to reach people who haven’t been to your website yet

c. It wouldn’t be a good fit. You have to tag your website to use Customer Match

d. Customer Match relies on your own data instead of a remarketing tag

Learn more about Remarketing  on:

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