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]
3 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]3 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
your organization entered into an interoperability agreement (ia) with another organization a year ago. as a part of this agreem
Nadusha1986 [10]

The term "Interoperability Agreement" refers to a contract between MDTA and one or more other toll account providers that outlines the protocols and arrangements

under which the parties agree to pay each other for all toll transactions that comply with the agreement's requirements for transmission, debiting, and payment and that must be included in the current payment cycle. Both the IAG and regional interoperability agreements are part of these accords.The Metropolitan Clearing Corporation of India Ltd. (MCCIL), Metropolitan Stock Exchange of India Limited (MSE), NSE Clearing Limited (NCL), National Stock Exchange of India Limited (NSE), Indian Clearing Corporation Limited (ICCL),

learn more about interoperability agreements  here:

brainly.com/question/20738512

#SPJ4

8 0
1 year ago
The next dividend payment by Wyatt, Inc., will be $2.30 per share. The dividends are anticipated to maintain a growth rate of 4.
balandron [24]

Answer:

Required return 10.27%

Dividend yield 5.77%

Expected capital gains yield 4.5%

Explanation:

Calculation for required return using this formula

A. R = (D1 / P0) + g

Let plug in the formula

Required return = ($2.30 / $39.85) + .045

Required return = .1027*100

Required return= 10.27%

Therefore Required return is 10.27%

Calculation for dividend yield using this formula

Dividend yield = D1 / P0

Let plug in the formula

Dividend yield = $2.30 / $39.85

Dividend yield = .0577*100

Dividend yield = 5.77%

Therefore Dividend yield is 5.77%

Calculation for the expected capital gains yield

Using this formula

Expected capital gains yield=Required return-Dividend yield

Let plug in the formula

Expected capital gains yield=10.27%-5.77%

Expected capital gains yield=4.5%

Therefore Expected capital gains yield is 4.5%

7 0
3 years ago
Aggregate Demand is everything produced while Simple Demand is one good. Which statement reflects Aggregate Demand?
lys-0071 [83]
Calculating real output
8 0
3 years ago
Will gie 5 starz thank and braiest
vampirchik [111]

Answer:

True true false False true false I'm not sure this is correct

Explanation:

7 0
3 years ago
Read 2 more answers
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.
VikaD [51]

Answer:

$281,612

Explanation:

Plane Operating Cost = Fixed cost + (Variable cost per unit1 × q1) + (Variable cost per unit 2 × q2)

Plane Operating Cost = $40,190 + ($2709*88) + ($10 * 303)

Plane Operating Cost = $40,190 + $238,392 + $3,030

Plane Operating Cost = $281,612

So, the plane operating costs in the planning budget for August would be $281,612

6 0
3 years ago
Other questions:
  • The Mobile Share Plan: $150 monthly fee for up to 10 devices, unlimited talk and text for all the lines, and data charges of $10
    5·1 answer
  • If you were Lilly’s CEO, what would you do ?
    11·1 answer
  • In this type of layout, machines and equipment, materials and people are brought next to the product as they are needed. What ty
    5·1 answer
  • QUESTION 20 Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed
    15·1 answer
  • Ryan buys a helmet for $20 and a bike that is on sale for $25 off. At the register, the cashier takes an additional 10% off the
    5·2 answers
  • Which of the following is true of variances? a.Unfavorable variances occur whenever actual prices or actual usage of inputs are
    11·2 answers
  • Congress adopted a law to provide insurance to protect wheat farmers. The agency in charge of the program adopted regulations to
    11·1 answer
  • What career cluster do you get to design build and destroy thing
    8·2 answers
  • Which item was invented in 1972 by minnesota vikings field-goal kicker fred cox? skateboard nerf football super soaker etch a sk
    11·1 answer
  • If the united states government lowers the income taxes on the wealthiest americans, while decreasing welfare payments to the po
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!