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nignag [31]
3 years ago
13

The next dividend payment by Savitz, Inc., will be $1.68 per share. The dividends are anticipated to maintain a growth rate of 6

percent forever. If the stock currently sells for $32 per share, what is the required return
Business
1 answer:
olasank [31]3 years ago
7 0

Answer:

The answer is 11.25%

Explanation:

Solution

Given that:

The next step to take is to calculate the required rate of return which is shown below:

The required rate = D₁/P₀₀ + g

Thus,

$1.68/$32 + 0.06%

=0.0525 + 0.06

=0.1125 or 11.25%

Therefore, the required rate of return is 11.25%

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An investor purchases a 15-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in
ra1l [238]

Answer:

Bond Price​= $846.3

Explanation:

Giving the following information:

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<u>To calculate the price of the bond, we need to use the following formula:</u>

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Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

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Savanna Smiles invested $5,000 for one year in a CD that earns interest at a rate of 3.5% compounded monthly. What is the intere
Mariulka [41]
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Hope this helps!
7 0
4 years ago
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Which of the following would be considered acts of violence?
balu736 [363]

Answer:

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5 0
3 years ago
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Orchid Corp. has a selling price of $15, variable costs of $12 per unit, and fixed costs of $27,000. If Orchid sells 11,500 unit
Helga [31]

Answer:

Total contribution margin= $34,500

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Giving the following information:

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