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
Bezzdna [24]
3 years ago
13

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

l then cease paying dividends forever. If the required return on this stock is 13 percent, what is the current share price?
Business
1 answer:
just olya [345]3 years ago
6 0

Answer:

56.47% is the current share price

Explanation:

To solve this question, we use the mathematical approach.

First, we calculate the current share price =

$8.45*Present value of annuity factor(11.2%,13)

But before we can get the value for the current share price, we need the value for the present value of annuity factor.

Present value of annuity factor = Annuity[1-(1+interest rate)^-time period]/rate =

8.45[1-(1.112)^-13]/0.112=

= $8.45*6.682519757 = 56.47%

You might be interested in
In addition to providing home mortgages, large commercial banks have specialized in providing short-term funds to mortgage banki
I am Lyosha [343]

Answer:

warehousing

Explanation:Warehouse financing as a type of financing   is the process whereby manufacturers or producers  take loan and the collateral for the loan taken are their goods/ items. The collateral   which is the goods or commodities are held in high regards or trust by a third party  who serves as a trustee holds the goods on the lender's behalf. s. an approved agent can also be used.

Warehouse financing is importantly necessary as it provides manufacturers with better and favorable loan terms , cost effective and  an adequate repayment plan also as a merit to its use.

4 0
2 years ago
The fixed budget indicates sales of $50,000. actual sales were $55,000. The variance is?
Anna007 [38]

The fixed budget indicates sales of $50,000. actual sales were $55,000. The variance is $5,000 favorable.

The variance is a measure of variability. it's far calculated by taking the average of squared deviations from the mean. Variance tells you the diploma of unfold in your information set. The more unfold the data, the larger the variance is in relation to the mean.

In opportunity idea and information, variance is the expectation of the squared deviation of a random variable from its populace imply or sample suggest. Variance is a measure of dispersion, that means it's far a degree of the way a long way a fixed of numbers is spread out from their average price.

Not like variety and interquartile range, variance is a measure of dispersion that takes into consideration the unfold of all information points in a data set. It is the degree of dispersion the most often used, in conjunction with the standard deviation, that is truly the rectangular root of the variance.

Learn more about variance here brainly.com/question/15858152

#SPJ4

5 0
1 year ago
(Consider This) If the law of diminishing returns applies to study time:
erma4kov [3.2K]

Answer:

A. the 10thhour of study will likely be less productive than the 3rd.

Explanation:

The law of diminishing returns is a point at which the level of benefits or apprehensions gained is less than the amount of energy or time that is invested.

So at the tenth hour, this law would be setting in, and the effectiveness of each additional unit of time decreases. So this hour will be less productive than the third hour.

7 0
3 years ago
An economy grows at an annual rate of 3​%. It will take approximately______years for GDP to double. ​An economy grows at an annu
Andreyy89

Answer:

24 years

7 years

Explanation:

Using the rule of 72, the number of years it would take GDP to double = 72 / annual rate

1. 72 / 3 = 24 years

2. 72 / 10 = 7.2 years

I hope my answer helps you

6 0
3 years ago
Ethical dilemma ethical lapse
makkiz [27]

Answer:

An ethical lapse is a mistake or error in judgement that produces a harmful outcome (Roslyn Frenz, n.d., para. ... Otherwise there are grave consequences for such ethical lapses and could result in widespread harm to the company and to the society at large.

In both situations presented, I believe them to be ethical dilemmas. An ethical dilemma is considered to be a problem between two possibilities that are not acceptable or preferable. Making a choice between the two would result in hurting the other. Employing the child is wrong because of labor laws, but the child is able to provide for themselves because of it. Taking away the employment would make the child homeless and hungry. The second scenario is also a dilemma because you run the risks of loosing profits if you do things the correct way. Neither choice would result in a preferable outcome. Doing the right thing sometimes comes with a price.

Explanation:

Examples of ethical lapses include business-related misconduct such as fraud, bribery, insider trading, and environmental disasters involving negligence or recklessness. They also include personal ethical misconduct, such as inflated résumés and sexual indiscretions.

5 0
3 years ago
Other questions:
  • Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $287,000, has an estimated useful life of 8 years and an es
    5·1 answer
  • Which of the following is an unintended consequence of the rise of the primary and caucus system? Question 3 options:
    10·1 answer
  • All activities associated with the flow and transformation of goods and services from the raw material stage to the end user, to
    7·2 answers
  • If the Fed purchases $50,000 in T-bills from a bank, by how much will the bank's excess reserves increase: a) by $50,000. b) by
    14·1 answer
  • holdy Inc's bonds currently sell for $1,275. They pay a $120 annual coupon and have a 20-year maturity, but they can be called i
    10·1 answer
  • Research indicates that 25 percent of U.S. salespeople engaged in __________ selling consider it unethical to explicitly ask cus
    14·1 answer
  • What is a multinational company
    15·1 answer
  • You just won the lottery, which promises you $260,000 per year for the next 20 years, starting today (annuity due). If your disc
    11·1 answer
  • Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed
    13·1 answer
  • Suppose you will receive a payment of $300 one year from now. True or False: If during the year the interest rate rises, this in
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!