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Savatey [412]
3 years ago
15

Global Exporters recently announced that it will pay annual dividends of $1.10; $1.25, and $1.30 a share over the next three yea

rs, respectively. After that, the firm plans to increase its dividend by 2.5 percent annually. What is one share of this stock worth to you today if you require an 11 percent rate of return?

Business
2 answers:
Whitepunk [10]3 years ago
4 0

Answer:

$13.28

Explanation:

Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.

Formula for PV of dividend

PV of Dividend = Dividend x ( 1 + r )^-n

1st year

PV of Dividend = $1.10 x ( 1 + 11% )^-1 = $0.99

2nd year

PV of Dividend = $1.25 x ( 1 + 11% )^-2 = $1.01

3rd year

PV of Dividend = $1.30 x ( 1 + 11% )^-3 = $0.95

After three years the dividend will grow at a constant rate of 2.5%, so we will use the following formula to calculate the present value

PV of Dividend = [ $1.30 x ( 1 + 2.5% ) / ( 11% - 2.5% ) ] x [ ( 1 + 11% )^-4 ]

PV of Dividend = $10.33

Value of Stock = $0.99 + $1.01 + $0.95 + $10.33 = $13.28

Paraphin [41]3 years ago
3 0

Answer:

$14.42

Explanation:

Please kindly check attachment for the step by step solution of the given problem.

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Answer:

I dont understand the question

Explanation:

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the average cost for interplanetary space to fly a 100-seat spaceship between mars and amsterdam is $100 million. the $100 milli
rjkz [21]

Based on the fact that the average cost of  interplanetary space to fly a 100-seat spaceship between Mars and Amsterdam is $100 million, then the $100 million is not marginal.

<h3>Which cost is marginal?</h3>

Marginal cost refers to the additional cost that we incur for wanting an additional unit of a product or service. This means that it is not an average score because it is concerned with one additional unit while the average is based on all units.

The $100 million for going into space between Mars and Amsterdam is an average cost. It is therefore not a marginal cost and cannot be grouped as one.

The first part of the question is:

Identify whether the scenario is an example of a marginal cost, marginal benefit, or neither.

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7 0
2 years ago
Under the basic dwelling form, when is damage caused by vandalism included as covered peril?
finlep [7]

Under the basic dwelling form, when is damage caused by vandalism included as covered peril when a premium for extended coverage is mentioned in the declaration.

<h3>What is dwelling policy ?</h3>

A dwelling policy is a substitute to a homeowners insurance. Dwelling insurance can cover more than just fire only. It is the part of homeowners insurance policy that helps pay for the rebuilding, repair of physical structure of one's home if the damage is by covered hazard. But Dwelling policy isn't for all, so it can be beneficial for: Vacation homes, Vacant homes, Rental properties, Older homes, and Seasonal homes.  

The damage caused by vandalism is covered under the basic DP-1 form when a Premium for Extended Coverage is mentioned in the Declarations. perils such as Vandalism, Hail or Windstorm, Explosion, Riots, Smoke, Vehicles, and Volcanic Eruption can be included.

Therefore Under the basic dwelling form, Damage caused by vandalism included as covered peril when a premium for extended coverage is mentioned in the declaration.

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Paid vacations and sick leave are
Ronch [10]

Answer:

required by

Explanation:

5 0
2 years ago
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If ZipCar engaged in all the activities discussed in the video, but then sold customer data to a third party in a contradiction
Naya [18.7K]

Answer:

The correct option is: both socially responsible and ethical.

Explanation:

To begin with, the fact that the company sold customer data to a third party, even thought that it engaged in all the other activities as promised, it will make it to be both socially responsible and ethical and that is because in a court the judge will be in favour of the more weak party, that is the customer whose date was sold without his approval to a third party, and therefore that in social terms the company will be guilty. Also, that action will affect the company in terms of ethical because once that it is all known by the customers whose date was sold then they will start a campaign in order to destroy the company's ethical image by the public and that will cause a huge decrease in the sales.

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