Google's relaxed and non-traditional corporate culture is one aspect of which

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t

Misha Larkins [42]

Answer:

$68.48

Explanation:

We have a stock that pays no dividends for 9years. Once the stock begins paying dividends, it will have a constant growth rate of dividends. We can use the constant growth model at that point. It is important to remember that general constant dividend growth formula is:Pt= [Dt× (1 + g)] / (R− g)This means that since we will use the dividend in Year 9, we will be finding the stock price in Year 10. The dividend growth model is similar to the PVA and the PV of a perpetuity: The equation gives you the PV one period before the first payment. So, the price of the stock in Year 10 will be:P9= D10/ (R− g) = $17 / (12.5/100 − 3.9/100) = $197.67

The price of the stock today is simply the PV of the stock price in the future. We simply discount the future stock price at the required return. The price of the stock today will be:P0= $197.67/ 1.125^9= $68.48

4 0

4 years ago

Darrell lives in a very rural area where price levels have remained low for several years. what does this indicate about demand

melomori [17]

This indicates about the demand for housing in the area is Demand is low.

Demand surely approaches a patron's preference to shop for items and services with no hesitation and pay the price for it. In easy words, demand is the number of goods that the clients are equipped and inclined to buy at several prices at some point in a given time body.

In economics, demand is the amount of a very good that purchasers are willing and able to buy at numerous expenses during a given time frame and region. The connection between charge and amount demand is also called the call for the curve.

Call for may be defined as the amount of a commodity that a customer is ready and willing to buy, at every viable charge, over a given time period. Crucial factors of demand are quantity, capacity, willingness, prices, and period of time.

Learn more about demand here brainly.com/question/1288364

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7 0

2 years ago

A coupon bond that pays interest semiannually has a par value of $1,000, matures in 8 years, and has a yield to maturity of 6%.

vitfil [10]

Answer:

b. 1,062.81

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

$price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }$

where: principal as said before is the value lended, coupon is the rate of interest paid, i is the interest rate and n is the number of periods

so applying to this particular exercise, as it is not said we will assume that 6% and 7% are interest rate convertible seminually, so the price of the bond will be:

$price=\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{1} } +\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{2} }+\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{3} }+...+\frac{1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{15} }+\frac{1,000+1,000*\frac{0.07}{2} }{(1+\frac{0.06}{2}) ^{16} }$

price=1,062.81

take into account that here we are asked about semianually payments, so in 8 years there are 16 semesters.

6 0

4 years ago

Identity errors, incorrect account details, and fraudulent accounts are the most common credit report errors. What should you do

Lostsunrise [7]

Answer:

The correct answer is letter "A": You should dispute the error with a credit agency or with a bank/lender and locate any receipts or other written proof that the data is not correct.

Explanation:

It is important to review your credit report frequently to spot errors. In such cases, you must the corresponding financial institutions to make the corrections necessary. If proof is needed you should send it. The objective is to <em>keep your information as accurate as possible</em> so your credit rating can increase every year.

4 0

3 years ago

Firms use ________ systems to integrate business processes in manufacturing and production, finance and accounting, sales and

Jet001 [13]

Answer:

Enterprise

Explanation:

An enterprise system is an information system that provides all the units of a company with coordination and integration of the key business processes. It also helps in resource planning

7 0

3 years ago