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drek231 [11]
3 years ago
7

The Three Amigos Restaurant just paid an annual dividend of $4.20 per share and is expected to pay annual dividends of $4.40 and

$4.50 per share the next two years, respectively. After that, the firm expects to maintain a constant dividend growth rate of 2 percent per year. What is the value of this stock today if the required return is 15 percent?
Business
1 answer:
shusha [124]3 years ago
7 0

Answer:

$33.93

Explanation:

First, find the present value of each year's dividend at 15% required rate of return;

(PV of D1 ) = 4.40 / (1.15) = 3.8261

(PV of D2 ) = 4.50 / (1.15²) = 3.4026

Next, find terminal Cashflow;

D3 = D2 (1+g)

D3 = 4.50 (1.02) = 4.59

(PV of D4 onwards ) = \frac{\frac{4.59}{0.15-0.02} }{(1.15)^{2} } \\ \\ = \frac{35.3077}{1.3225} \\ \\ = 26.6977

Next sum up the PVs to find price;

=3.8261 + 3.4026 + 26.6977

= 33.926

Therefore, this stock is worth $33.93 today

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Canada goes to considerable lengths to protect its television program and magazine producers from U.S. competitors. The United S
Anettt [7]

Answer:

D. All the Above

Explanation:

A. Lead to greater productivity

This is true because through specialization and competitive advantages you can achieve greater productivity in the production of goods and services. If you have a competitive advantage, it is because you have more capital, infrastructure and specialized human capital in the production of a specific type of good or service so that a greater amount of that good can be produced than another country in the same time.

B. Lead to greater output even if you can do everything better than someone else.

This is true since although a country has a competitive advantage in all industries, concentrating its labor and capital in the production of the good or service in which it has the greatest competitive advantage will allow a higher level of production in that sole good/service than if he divided his resources into the production of other goods and services.

C. Lead to international trade and overall gains for the nations involved.

This point, despite being true, is debatable. In theory, international trade allows to reach greater levels of wealth to the countries involved by being able to exchange the goods in which they have competitive advantage for others that if they were produced in the country they would consume part of their resources by not having such high productivity as if it will trade with a country that does have the capacity to produce it.

Having this clear, we can say that all of the above are true, so the answer is D.

4 0
3 years ago
As a researcher, what would you do if you set to reject the null and found the null to be true?
soldi70 [24.7K]
Set the significance level of the probability of making a type error to be small 0.01, 0.05, or 0.10 compare the P value to if the P value is less than or equal to reject the no hypothesis in favor of the alternative hypothesis.
4 0
3 years ago
The purchase of one cup of coffee a day...
MrRissso [65]
Answer is c


Hope that helps
4 0
3 years ago
a $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest
icang [17]

Answer:

The current price of the bond is $1019.63

Explanation:

The current price of the bond is the present value of the face value of the bond that will be received at maturity plus the present value of the interest payments that the bond will provide.

The interest payments by the bond are of equal amount and after equal interval of time and are for a defined time period. Thus, they can be treated as an annuity and the present value of annuity can be calculated using the interest payments.

The semiannual interest payment by bond is = 1000 * 0.0625 * 6/12 = $31.25

The semi annual YTM = 6.03 / 2 = 0.03015 or 3.015%

The total discounting periods are = 13 * 2 = 26 periods

The current price of the bond = 31.25 * [ (1- (1+0.03015)^-26) / 0.03015 ]  +

1000 / (1+0.03015)^26  

Current price of the bond = $1019.63

7 0
3 years ago
Read 2 more answers
Which amendment protects against double jeopardy?a. The First Amendmentb. The Second Amendmentc. The Third Amendmentd. The Fourt
Leya [2.2K]

Answer:

The Fifth Amendment

Explanation:

Double jeopardy refers to punishing the same person twice for almost same crime or any act which is punishable.

Accordingly, in the fifth amendment there is a clause which clearly states that no person shall be prisoner for same offence for same period for same act.

As once a person is punished for an offence, clearly he shall not be punished again for the same act. This provides benefit to the prisoner, whether criminal act or other kind.

Thus, correct answer is fifth amendment.

5 0
3 years ago
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