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
Omega, Inc. sells its fitness wrist band for $100. It cost the company $62 to make the product. While Tom values the Omega wrist
dangina [55]

Answer:

B. each customer's reservation price.

Explanation:

Reservation price is the highest amount a buyer would be willing to pay for a good or service.

I hope my answer helps you

7 0
3 years ago
Read 2 more answers
Which of the following will probably earn a higher level income?
aleksley [76]

In my opinion D. a female accountant with a masters degree in business administration, will earn a higher level of income. <em>Explanation- if she has a masters then they may accept her in jobs other people are not able to get without a masters, they may also pay her higher because of it.</em>


<h3>Hope this will help- for more help follow me, or contact me</h3>
7 0
3 years ago
Read 2 more answers
The price of money borrowed or saved is called _____.<br> interest<br> loan<br> money supply
Vlad1618 [11]
The price of money borrowed or saves is called INTEREST.

When you borrow money, interest is also paid on the principal. When you save money, interest is earned on the savings. This is the price of money borrowed or saved. 
7 0
3 years ago
When leaving a job, desirable knowledge employees are most likely to find new employment on Internet career sites and go alone t
schepotkina [342]

Answer:True

Explanation:

3 0
2 years ago
Required information Use the following information for the Exercises below. Skip to question [The following information applies
Lyrx [107]

Answer:

Follows are the solution to this question:

Explanation:

In point A:

The estimated amount of uncollectible allowance =\$ \  635,000 \times 4 \% = \$ \ 2,540,000

In point B                                    Journal

Titles and descriptions of accounts         Debit          Credit         Calculation    

Expenditure on bad debts                \$ \ 2,526,700

Doubted debt allowance                          \$ \ 2,526,700 \  \   (\$ \ 2,540,000 - \$ \ 13,300)

(Bad Debts Expense recorded)  

In point C                                         Journal

Titles and descriptions of accounts         Debit          Credit         Calculation    

Expenditure on bad debts               \$ \ 2,553, 300

Doubted debt allowance                        \$ \ 2,553, 300     \ \ \ \ (\$ \ 2,540,000 + \$ \ 13,300)    

(Bad Debts Expense recorded)  

5 0
3 years ago
Other questions:
  • Economic growth is __________.
    7·1 answer
  • When Beta Company bought Gamma Company, Beta sold off about 30% of Gamma’s assets because they did not need them. Beta kept only
    13·1 answer
  • YOU are working with a Professional Edition organization. They wish to install the Expense Tracker which requires the use of 4 c
    13·1 answer
  • What is the discounted payback of a project that has an initial outlay of $20,000 and will generate $6,000 in year 1, $12,000 in
    14·1 answer
  • In the context of organizational environments, which of the following is true of mechanistic organizations? a. They are characte
    6·1 answer
  • Choices companies give customers of the
    14·1 answer
  • 32. How many significant accounting policies are listed under its Summary of Significant Accounting Policies
    11·1 answer
  • On December​ 31, 2014​, Renda​'s common stock sold for per share. At that​ price, how much did investors say​ $1 of the​ company
    12·1 answer
  • Deflation is a period where supply for most products is less than demand.
    13·2 answers
  • On January 1, 2017, Swen paid $184,000 for $200,000 of the 8%, 20-year bonds of Penn Corporation, issued on January 1, 2013, at
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!