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sashaice [31]
3 years ago
12

A share of stock is now selling for $155. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What mus

t investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of return on the market is 20%.
Business
1 answer:
Hoochie [10]3 years ago
3 0

Answer:

$180

Explanation:

Expected return E(r) = \frac{(D1+ P1 -P0)}{P0}

D1= Next year's dividend

P1 = Next year's price

P0 = Current price

Since the beta is 1, it means this stock's return = market return = 20%

E(r) = \frac{(6+P1-155)}{155}

0.20 = \frac{P1-149}{155}

Multiply both sides by 155

31 = P1-149

Add 149 on both side s to solve for P1;

31+149 = P1

180 = P1

Therefore, the stock will sell at $180

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Who lowered interest rates on government bonds in order to create a fund to pay an annual sum to the survivors of the emigres wh
REY [17]

Answer:

Charles X

Explanation:

Charles X was a king of France between 1824 and 1830 and for the greater part of his life was known as the Count of Artois. During his reign as king, Charles X, whose full name is Charles Phillipe, lowered interest bonds to create funds to pay survivors of the emigres who forfeited their lands. He also restores primogeniture(the right of succession of the throne by first borns). He also enacted the law of death or imprisonment for sacrilege in his support of the Roman Catholic Church.

Cheers.

5 0
3 years ago
Which of the following would be a producer? someone owning a book store someone shopping in a grocery store someone putting gas
Luba_88 [7]

Example of a producer can be regarded as someone owning a book store .

<h3>Who is a producer?</h3>

A producer can be regarded as a manufacturer of a particular product or service.

Therefore, in the case above, a producer serves as the one that own the shop, however he can decide to distribute his products to retailer.

Learn more about producer at;

brainly.com/question/12441980

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4 0
2 years ago
Difference between sole proprietorship and independent contractor
wariber [46]

Answer:

Explanation:

A sole proprietor is a person who owns, manage, finance and organize a business firm.

It refers to an individual who owns a business that has not been registered as a business entity. Such business includes partnership, limited liability company (LLC) and a corporation.

A sole proprietor is responsible for decision making process of his business and also bears the burden of profit, loss and tax alone.

WHILE

An independent contractor is an individual who works for another individual. An independent contractor provides services to another person but he is not an employee of the other person. An independent contractor is a self employed person who provides professional services to a business organzation.

He is paid based on the amount of work done. Examples of independent contractor includes graphics designer, data analyst, web designer or IT expert.

8 0
3 years ago
Deep Water Mining added $411 to retained earnings last year on sales of $24,646. The administrative expenses were $4,370, deprec
ANTONII [103]

Answer:

It is $18,290.24

Explanation:

Profit after Tax (65%) = addition to retained earnings+dividend paid

                                   = $411 +  $285

                                    = $ 696

Profit before Tax = [100/65] * $ 696

                            = $1070.76

Tax (35%)             = 35% * $1070.76

                            = $374.77

Gross Profit = Profit before tax + Total expenses

                    = $1070.76 + [  $4,370+ $103+ $812]

                    = $6355.76

Cost of Sales= $24,646 -$6355.76

                     = $18,290.24 .

Note

-Dividend is paid is paid from profit after tax

6 0
3 years ago
Henry is a landlord renting an apartment to​ Steven, a student at a nearby university. The two enter into a​ one-year lease arra
Sindrei [870]

Answer:

Mitigate his damages

Explanation:

By law, mitigation involves making effort to reduce losses. Now, an individual claiming damages or losses due to break in contract or a wrongful act by another individual has a duty under the law to mitigate those damages. That is to say, the plantiff is under a duty under the law to reduce the loss by taking advantage of any opportunity arising that may help.redice the losses or damages. However, in this case, the plantiff, who's the landlord Henry did not mitigate the loss by not attempting to or renting the accommodation out for the remaining six month. Thus, the damages would likely be reduced because he failed to mitigate his damages as he should have done as required under the law.

3 0
3 years ago
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