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
Soloha48 [4]
3 years ago
6

How much are you willing to pay for one share of LBM stock if the company just paid an annual dividend of $2.24, the dividends i

ncrease by 2.3 percent annually, and you require a return of 14.8 percent?
A. $19.29
B. $17.59
C. $18.21
D. $18.33
E. $19.33
Business
1 answer:
Licemer1 [7]3 years ago
7 0

Answer:

$18.33

Explanation:

The company just paid an annual dividend of $2.24

The dividend increase by 2.3% annually

= 2.3/100

= 0.023

The required return is 14.8%

= 14.8/100

= 0.148

Therefore the price that will be paid for one share of LBM stock can be calculated as follows

= 2.24 × (1+0.023)/(0.148-0.023)

= 2.24 × 1.023/0.125

= 2.29153/0.125

= $18.33

Hence $18.33 will be paid for one share of LBM stock

You might be interested in
On September 1, Year 1, Gomez Company collected $9,000 in advance from a customer for services to be provided over a one-year pe
Margaret [11]

Answer:

d. $9,000; $9,000

Explanation:

As cash received on January 1 in advance to provide service in one year which is completed on December 31. So all the Unearned revenue is recognized because service for 12 month has been performed so whole amount will be reported in Income statement for the year ended December 31. Only cash received is from the service revenue activity so, it is also reported as $9,000. correct option is d. $9,000; $9,000.

4 0
3 years ago
A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 18,300 uni
PtichkaEL [24]

Answer: 14.9%

Explanation:

18300/12770x100%

8 0
3 years ago
When a country experiences capital flight, its net capital outflow, a. which is part of the demand for loanable funds, increases
Dahasolnce [82]

Answer:

D

Explanation:

Capital flight will reduce the quantity of money supply that can be loaned to investors.

8 0
3 years ago
How many Tim Hortons franchises are there? (franchises not including franchisees)
Gwar [14]
4,932 worldwide franchises
4 0
3 years ago
The ABC Company is planning a new product line and will build a new plant to manufacture the parts for a new product line. The p
NikAS [45]

Answer:

a. Number of production operations = 120,000,000 per year.

b. Number of Workers = 1,000 workers.

C. Size = 250,000 ft²

Explanation:

a

Number of production operations is calculated as;

50 models * 1000 units * 400 components * 6 steps

Number of production operations = 120,000,000 per year.

b.

Number of workers is calculated as;

Total operation time ÷ factory operating hours per year;

Factory Operating Hours = 2000.

Calculating total operation time;

= 120,000,000 * 1hr/60min

= 2,000,000 hr/yr

So. Number of workers = 2,000,000 ÷ 2,000

Number of Workers = 1,000 workers.

c. Size of floorspace

Size = Number of workstations * floorspace

Number of workstations = number of workers = 1000

Floorspace = 250ft²

Size = 1000 * 250

Size = 250,000 ft²

3 0
3 years ago
Other questions:
  • The first item appearing on the statement of owner's equity is Select one: a. net income b. the ending balance of owner's equity
    8·1 answer
  • 3) Drew receives an inheritance that pays him $54,000 every three months for the next two years. Which of the following is close
    6·1 answer
  • The Chinese culture is a tight social framework in which people take care of the members of a broader in group and act loyal to
    10·1 answer
  • Sheffield borrowed $701000 on October 1, 2017 and is required to pay $721000 on March 1, 2018. What amount is the note payable r
    9·1 answer
  • Several months ago, a restaurant developed a new appetizer that is a hit with customers. Many customers go to the restaurant jus
    10·1 answer
  • Suppose another firm found a way to offer IKEA’s customers (young buyers interested in stylish furniture at low cost) additional
    6·1 answer
  • How to eat a burger at bobs grill respectfully
    5·2 answers
  • Robert's credit card has a balance of $645.42, but the amount that he needs to pay to bring the card to a $0 balance is $1235.18
    14·1 answer
  • Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships fo
    8·1 answer
  • . Sam Rothstein wants to borrow $15,500 to be repaid in quarterly installments over five years at 16% compounded quarterly. How
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!