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charle [14.2K]
4 years ago
13

You are considering purchasing stock. The stock is expected to pay a dividend of ​$94 per share. The consensus of investors is t

hat these dividends will increase at a rate of 4 percent per year for the indefinite​ future, and the interest rate is 12 percent. The price of the stock should be ​$ ________.
Business
1 answer:
Sliva [168]4 years ago
4 0

Answer:

PV=1,175

Explanation:

this question can be solved thinking as  if we have a perpetuity, it is a future infinite payments, but in this particular case we have those payments (dividends) increasing over the time, so we can apply the next formula:

PV=\frac{94}{i-k}

where PV is the present value of the future payments, i is the interest rate and k is the annual increasing, so applying to this data we have:

PV=\frac{94}{0.12-0.04}

PV=1,175

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4. A company expects its September sales to be 15% higher than its August sales of $140,000. Purchases were $75,000 in August an
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Answer: C. $140,300

Explanation:

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Lane Bryant is a women's clothing line, dealing exclusively in stylish clothing and flattering fits for plus-size women. Which b
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To reduce traffic, market town enacts an ordinance that permits only a few specific street vendors to function in certain areas. a court would likely review this ordinance under the principles equal protection.

<h3>What is principle equal protection?</h3>

The concept of equal protection states that no one should be denied the same level of protection from a government's laws. A person must be treated equally by the state's governing authority to others who are in comparable situations. Advocates have used the Equal Protection Clause, which mandates that states treat their residents equally, to challenge discriminatory laws, policies, and governmental acts.

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Hence,  To reduce traffic, market town enacts an ordinance that permits only a few specific street vendors to function in certain areas. a court would likely review this ordinance under the principles equal protection.

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