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irga5000 [103]
3 years ago
11

Your local toy store just announced that it will pay a $4 dividend next year, $3 the following year, and then a final liquidatin

g dividend of $46 a share in year 3. At a discount rate of 14 percent, what should one share sell for today?
Business
1 answer:
topjm [15]3 years ago
8 0

Answer:

It would sell for 761.49 dollars

Explanation:

Generally, stock prices are determined on stock market based on supply and demand mechanism. However, according to the discount dividend model present value of stock could be calculated as dividend per share/(cost of capital equity-growth rate). Growth rate between year 1 and 2 is 3-4/4 equals to -0.25%. From year 2 until year 3 it is 46-3/3 equals to 14.33%. Now we can take arithmetic average of these two and we get 7.04%( 14.33-0.25/2). Finally share could sell today for 46+3+4/(14-7.04%) equals to 761.49 dollars

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The economy of Elmendyn contains 900 $1 bills. If people hold all money as currency, the quantity of money is $ . If people hold
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Answer:

a)    900 dollar as all is M0

b)    900 as the deposit have no multiplier effect

c)    900 as there is no multiplier effect

d) 7,200 taking into consideration the multipler effect from the bank deposit.

e) 4,050 considering the deposit multiplier effect

Explanation:

a; b ; c ) as there is no multiplier effect the quantity of money matches the nominal currency.

d)

M0 (currency and coins) 0

M1 900 / 0.125 =  7,200

e)

currency : 900 / 2 = 450 M0

deposit :

450 / 0.125 = 3,600 M1

Total 4,050

7 0
4 years ago
The ability of one country to produce a good or service more efficiently than another is called a(n) _____.
dsp73

Answer:

absolute advantage

Explanation:

the answer is absolute advantage know the explanation for it .

5 0
2 years ago
Your auto insurance policy has a $200 monthly premium and $700 deductible. What is the maximum amount you will have to pay out-o
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When you take out an insurance policy your monthly premium is the amount you pay each month to keep your insurance. In this case, the $200 a month premium allows you to file a claim if something were to happen because you are paying for the insurance services. When you set up your premiums they will base your monthly service rates off of your deductible amount if you need to file a claim. The out-of-pocket for a car accident with a deductible of $700 is $700. Once the deductible is paid, the insurance will pay out for the damage.

6 0
3 years ago
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chubhunter [2.5K]

Answer:

Estimated manufacturing overhead rate= $38.25 per direct labor hour

Explanation:

Giving the following information:

Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $306,000. The total estimated direct labor hours for the coming year are 8,000

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 306,000/8,000= $38.25 per direct labor hour

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4 years ago
Both intrinsic and extrinsic risk factors contribute to an older person's vulnerability to falls. which would be considered an i
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6 0
3 years ago
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