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
Schach [20]
2 years ago
9

The Lighthouse Co. is in a downsizing mode. The company paid a $2.50 annual dividend last year. The company has announced plans

to lower the dividend by $.50 a year. Once the dividend amount becomes zero, the company will cease all dividends permanently. The required rate of return is 16%. What is one share of this stock worth?
Business
1 answer:
Helen [10]2 years ago
5 0

Answer:

$3.7557

Explanation:

The computation of one share of this stock worth is shown below:-

Years    Dividend     Present value         Present value

                                 factor at 16%    

0            $2.50

1             $2.00         0.8621                             $1.7241

2            $1.50           0.7432                            $ 1.1147

3             $1.00         0.6407                            $0.6407

4             $0.50       0.5523                             $0.2761

                                  Total                              $3.7557

Present value factor at 16% = (1 ÷ (1 + discount rate))^years  

You might be interested in
In a Microsoft® Word® document, if a user wanted to organize information in rows in columns, they should select a _____.
nevsk [136]
Chart, because a chart has coloumns, and at the top it labels clearly the contents of the coloumn
5 0
3 years ago
Read 2 more answers
You have been given $100 to start a checking account. Considering the four P's discussed in the module, go online to research an
Anestetic [448]

Answer:

The four Ps happens to be the four significant factors that come into the vicinity when certain service or the good is being marketed with the public as the buyer. And the four Ps are product, price, promotion and the place. We need to select the bank which is nearest to us, and about which we have heard a lot and are confirmed about good service. The $100s checking account is not going to print interest for us, but we need 24 x 7 service as its a sort of current account, and we need to do the daily transaction through it. And hence the bank should provide all the time good service, and most probably 24 x 7 service. And this defines their product. Also, they should charge the least service charge, and that is the price. The bank which best fit according to above 4 p's, is the bank I will choose.

Explanation:

Please check the answer section.

6 0
2 years ago
The type of account and normal balance of unearned consulting fees is revenue, credit liability, credit liability, debit expense
alexdok [17]
The unearned consulting revenues are liabilities. A liability, in accounting terms, is an obligation and is found in the balance sheets of companies or businesses. When a company does transactions with other individuals or companies usually they owe amounts to creditors for the goods or services the company acquires. In another sense, a liability is a source of the company’s assets. They can also be considered as claims against the company’s assets. A liability may also include those amounts received by the company in advance of future services. Liabilities include accounts payable, notes payable, salaries payable, interest payable, bonds payable, accrued expenses payable, etc. Their normal balance is credit.
3 0
3 years ago
Octavio wants to compare the gross national product for six different countries for the year 2016. the best way for him to displ
Ierofanga [76]

<span>If Octavio wants to compare the gross national product for six different countries for the year 2016,  he can best show his information by combination charts.</span><span> For example, you can combine a line chart or a bar chart that shows the gross national product (GNP) range with a column chart that shows GNP per country. The two variables are set as Y and X axis respectively.</span>

6 0
2 years ago
During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5, 310
mariarad [96]

Answer:

See the attached picture for detailed answer.

Explanation:

See the attached picture for explanation.

7 0
3 years ago
Other questions:
  • True or false: When considering the elimination of a segment, management should look at more than the segment's performance repo
    14·1 answer
  • You heard somebody say, Marketing is just sales and advertising" Discuss the accuracy of this statement
    11·1 answer
  • How much does it cost to run a 20 gallon fish tank?
    6·1 answer
  • Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willin
    5·1 answer
  • Indicate which of the functions of money (a medium of exchange, a unit of account, and a store of value) each of the following p
    12·1 answer
  • When depreciation is computed for partial periods under a decreasing charge depreciation method, it is necessary to a. charge a
    15·1 answer
  • QUIZLET Brenda buys a ticket for a Sharks game for $60. The night before the game her friend offers her a free ticket to a Warri
    14·1 answer
  • Materials from a source text without property citing the source is an example of plagiarism -(drivers Ed).
    7·2 answers
  • Members of a consumer cooperative usually
    12·1 answer
  • Majestic Theaters has plans to build a new $30 million movie theater and intends to finance this project through the sale of add
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!