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
frutty [35]
4 years ago
13

Upland Motors recently paid a $1.48 per share annual dividend. Dividends are expected to increase by 2.5 percent annually. What

is one share of this stock worth today if the appropriate discount rate is 14 percent?
Business
1 answer:
gregori [183]4 years ago
3 0

Answer:

$13.19

Explanation:

Data given

Annual dividend = $1.48

Increase percentage annually = 2.5%

Discount rate percentage = 14%

The computation of price is shown below:-

Price = Dividend ÷ (Cost of equity - Growth rate)

= ($1.48 × 1.025) ÷ (0.14 - 0.025)

= $1.517 ÷ 0.115

= $13.19

Therefore for computing the price we simply applied the above formula.

You might be interested in
WOULD YOU RATHER...?
Zina [86]
Pay 40$ up front because when you pay for a credit card for you are charged for the ability to pay later using interest.
4 0
3 years ago
Cost-benefit principles can be applied to the decision of:
marishachu [46]

Cost-benefit principles can be applied to the decision of e: all of these.

This means that cost-benefit principles can be applied to the decision of the following:

Majority rule voting

which project receives the most votes

rational ignorance

profit maximizing firms

4 0
4 years ago
Which of the following would not be classified as a material particiapant in an activity?
Nadusha1986 [10]

Answer:

C. MACRS depreciation expense.

Explanation:

Material participation in an income-producing activity. That is, an activity that is regular, continuous, and substantial leading to income-producing actions, in which the taxpayer materially participates is an active income or loss.

6 0
3 years ago
As more alcohol is use the amount consumed to reach the high will become ?
Ket [755]

You will need to consume more and more.

7 0
3 years ago
A company has recorded the last five days of daily demand on their only product. Those values are 120, 125, 124, 128, and 133. T
olchik [2.2K]

Answer:

The correct option is C. 630.

Explanation:

From the question, can have the following:

Lead time in days = 5 days

Average daily sales = (120 + 125 + 124 + 128 + 133) / Lead time = 630 / 5 = 126

Since the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, the reorder point (R) can be calculated as follows:

Reorder point (R) = Average daily sales * average lead time in days = 126 * 5 = 630

Therefore, the correct option is C. 630.

6 0
3 years ago
Other questions:
  • Ernesto baca is employed by bigg company. he has a family membership in his company's health insurance program. the annual premi
    15·1 answer
  • If the yield curve is upward sloping, then short-term debt will be cheaper than long-term debt. Thus, if a firm's CFO expects th
    12·1 answer
  • Identify a situation when a planner might favor advertising in a market when the BDI exceeded the CDI.  
    6·1 answer
  • Key performance indicator​ cards: A. lead to local but not global or strategic improvements if they are not linked to strategy.
    14·1 answer
  • A clause which provides for deeds to portions of land to be conveyed as certain percentages of the contract price are paid, is :
    14·1 answer
  • John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but
    13·1 answer
  • For each situation, list the assumption, principle, or constraint that has been violated, if any.
    5·1 answer
  • dministrative and selling expenses, and depreciation expenses were $454,000, $99,000, and $144,500, respectively. In addition, t
    9·1 answer
  • The following standards for variable manufacturing overhead have been established for a company that makes only one product: The
    8·1 answer
  • Compound interest is usually better than simple interest because it pays interest on the principal and the interest earned in ea
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!