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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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iVinArrow [24]

Answer:

C

Explanation:

A Letter of Last Instruction (LOLI) serves to give family important information such as where the person wants to be buried, instructions for any pets, or location of important legal documents.  

Side note: this is not a will, and should not be used as a substitution for one. A will is a legal document, a LOLI is not.

Hope this helps! Let me know if you have any further questions about my response.

3 0
3 years ago
In double-entry bookkeeping, what goes in the left
Nadya [2.5K]

Answer:Double-entry bookkeeping, in accounting, is a system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry has two equal and corresponding sides known as debit and credit. The left-hand side is debit and right-hand side is credit.

Explanation:

5 0
3 years ago
The following integrated series of questions relates to several sections in the text. Scenario​ 2: Suppose a stream is discovere
fiasKO [112]

Answer:

E. None of the above

Explanation:

The standard reaction function of firm 2 is given as = a-Cb/2b - 1/2*Qa

P = 30 - (Qa + Qb)

where a = 30 b = 1 and C = 3.

Leader's output = (a + Cb - 2Ca)/2b

Leader's output = (30 + 3 - 3*2)/2

                           = 13.5 units.

Reaction function of firm B,

Qb = 30 - 3/2

     = 13.5 - 1/2*13.5

     = 6.75 units.

P = 30 - (13.5 - 6.75)

  = $9.75

Therefore, The price of this new drink in the long run if the industry is a Stackelberg​ duopoly is $9.75

3 0
3 years ago
What could happen if you do not keep track of your checks you write?
velikii [3]
Nothing really, you just might have a better idea of your budget if you do.
3 0
3 years ago
Which of the following is not included in GDP?the payments for a chiropractor's servicescash income paid to a day laborer that i
Scilla [17]

Answer:

cash income paid to a day laborer that is not reported to the tax authorities

Explanation:

GDP stands for Gross domestic product. It is the  monetary value of all finished goods and services made within a country during a specific period.

It is calculated as GDP = private consumption + gross investment + government investment + government spending + (exports – imports).

Hence, cash income paid to a day laborer that is not reported to the tax authorities will not be included in GDP

8 0
3 years ago
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