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Nitella [24]
4 years ago
8

Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday, the firm announced the

dividend will increase next year by 10 percent and will stay at that level through Year 3, after which time the dividends will increase by 2 percent annually. The required return on this stock is 12 percent. What is the current value per share?
Business
1 answer:
Iteru [2.4K]4 years ago
5 0

Answer:

The current value per share is $25.51

Explanation:

P3 = ($2.40x1.10x1.02)/(0.012 - 0.02)

     = 26.928

P0 = (($2.40x1.10)/1.12) + (($2.40x1.1)/(1.122 ) + ((($2.40x1.1) + $26.928)/1.123 )

    = $25.51

Therefore, The current value per share is $25.51

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True or False<br> The real GNP, divided by our country's population, gives us the per capita GNP
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I would say it’s true because it does have some facts in it

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Goodman Auto started the year with total assets of $300,000 and total liabilities of $175,000. During the year, the business rec
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Answer:

The answer is $ 200,000

Explanation:

The net income reported by Goodman Auto for the year was,$475,000 - $275,000 = $ 200,000.

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4 years ago
. If the price elasticity of demand for pineapple is 0.75, a 4% increase in the price of pineapple will lead to a A. 3% decrease
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3 0
3 years ago
Read 2 more answers
Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreci
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Answer:

$3,210.94

Explanation:

The NOPAT of the Edwards electronics can be determined through the following mentioned method.

Sales:                                 $11,250

Operating costs:               ($5,500)

Depreciation:                    ($1,250)

Interest payment              ($218.75)

($3,500*6.25%)

Profit before tax               $4,281.25

Taxes(25%)                       ($1,070.31)

NOPAT                              $3,210.94

7 0
4 years ago
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