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Cloud [144]
3 years ago
7

Gamma Corp. is expected to pay the following dividends over the next four years: $7.50, $8.25, $15, and $1.80. Afterward, the co

mpany pledges to maintain a constant 4 percent growth rate in dividends, forever. If the required return is 14 percent, what is the current share price
Business
1 answer:
Delvig [45]3 years ago
6 0

Answer:

The Current price of stock $35.20

Explanation:

The computation of the current share price is shown below:

Particulars         Dividend     PVF at 14%      Present value

D1                       $ 7.50        0.877       $6.58

D2                    $8.25        0.769       $6.35

D3                    $15.00  0.675       $10.12

D4                     $1.80         0.592        $1.07

D5                    $1.87  

P4                    $18.72          0.592       $11.08

                    1.87 ÷ (14% - 4%)  

Current price of stock               $35.20

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Justin, age 66, paid $6,000 in qualified medical expenses in 2019 and took an $8,000 Archer MSA distribution during the year. Wh
Triss [41]

Answer:

No tax penalty will apply with respect to the excess distribution

Explanation:

Data provided in the question:

Age of Justin = 66 years

Qualified medical expenses in 2019 = $6,000

Archer MSA distribution taken during the year = $8,000

Now,

No tax penalty applies to with respect to the excess distribution for an individual whose age is over 65 years on the records.

Here,

The age of Justin is 66 years i.e over 65 years.

hence,

No tax penalty will apply with respect to the excess distribution

4 0
3 years ago
Suppose there are only three people in the economy: jane, harry, and bob. the individual demand for corn for each of these consu
OleMash [197]

Answer:

$25

Explanation:

Please check the attached image for a diagram of exhibit 3-1

The total quantity demanded can be found by adding the sum of the quantity demanded at $5.

Jane doesn't demand at $5, so her quantity demanded is 0

For Henry it is 8

For Bob, it is 17

Total quantity demanded ia 25

I hope my answer helps you

8 0
4 years ago
Suppose you plan to take summer courses. The cost of tuition and
alex41 [277]

Answer:

$5800

Explanation:

The income that would be earned if the summer courses were not taken is $5000 while we spend only $100 on food.

Besides, by taking the summer courses costs to be incurred is computed thus:

costs of summer courses=$1,200+$400+$300=$1900

By taking the summer courses one would earn $1000

In short, the opportunity of taking the summer courses is the earnings of -$5000 forgone plus the cost of $100 saved, plus the $1000 earned minus the $1900 spent on summer courses

i.e -$5000+$100+$1000-$1900=-$5800

5 0
4 years ago
What is the purpose of IDP
MakcuM [25]

The basic purpose of IDP is to assist the employees in their career and personal development.

<h3>What do you mean by purpose?</h3>

The purpose means the reason for which something can be done or created.

The basic purpose of IDP is to help employees for reaching short and long-term career goals as well as to improve their current job performance.

Learn more about Purpose here:

brainly.com/question/24763308

#SPJ1

6 0
3 years ago
The revenues of a company increased by 39% in year one and decreased 22% in year two. What is the overall change over the two-ye
Vlada [557]

the overall hange is a net-gain of 17% as the company's total revunue experienced an overall positive outcome over said two year period. :)

3 0
3 years ago
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