1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ValentinkaMS [17]
3 years ago
14

SummerSnowman Industries' last dividend was $1.25. The dividend growth rate is expected to be constant at 15.0% for 3 years, aft

er which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price? Do not round intermediate calculations.
Business
1 answer:
matrenka [14]3 years ago
4 0

Answer:

$33.50

Explanation:

we can use the perpetual growth model to determine the price of the stock

the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + [($1.25 x 1.15³ x 1.06)/(11% - 6%)]/1.11³

the stock price in 3 years = ($1.25 x 1.15³ x 1.06)/(11% - 6%) = $40.30

the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + $40.30/1.11³ = $1.30 + $1.34 + $1.39 + $29.47 = $33.50

You might be interested in
Which job title would be given to someone responsible for supervising production in a manufacturing setting?
ANEK [815]

Answer:

Production manager

Explanation:

In the firm or company, the duty of the production manager is to ensure that the manufacturing processes should run efficiently as well as reliably. In short, it means to ensure that the operations are being done through the employees, follow the limitation, which is created in the budget. The production manager will ensure that the firm will accomplish all the objectives by maintaining the profitability at the same time.

The responsibilities of the job involve, organising as well as planning the production, negotiates and create budgets and the timescales with managers and clients.

5 0
3 years ago
Brinkman Corporation bought equipment on January 1, 2007 .The equipment cost $90,000 and had an expected salvage value of $15,00
gavmur [86]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.

Depreciable cost= purchase price - salvage value

Depreciable cost= 90,000 - 15,000= $75,000

8 0
4 years ago
After their marriage, patrick and mary anne agreed to participate in a research project that investigated differences in the lev
DIA [1.3K]

I guess the correct answer is Longitudinal study

After their marriage, Patrick and Mary Anne agreed to participate in a research project that investigated differences in the level of marital satisfaction over time. Every five years they had to complete a survey that indicated their marital satisfaction. Patrick and Mary Anne are participants in a Longitudinal study.

4 0
3 years ago
On December 1, Victoria Company signed a 90-day. 8% note payable, with a face value of $16, 200. What amount of interest expense
8_murik_8 [283]

Answer:

Option (d) is correct.

Explanation:

Given that,

On December 1,

Victoria Company signed a 90-day. 8% note payable, with a face value of $16, 200

Interest expense on December 31 is accrued for 30 days (Dec 1 - Dec 31)

Interest expense:

= Amount of note payable × Interest rate × Time period

= $16,200 × 8% × (30 ÷ 360)

= $108

Therefore, amount of interest expense is accrued at December 31 on the note is $108.

5 0
3 years ago
The AW Direct trucking company recently had to terminate one third of its employees and restructure various divisions. Some empl
ololo11 [35]

Answer:

c. If the decision to terminate was an employee's, the relationship the previous employee had with AW Direct, the amount of notice given by the employee prior to departure, and the needs of AW Direct.

Explanation:

The impact, behavior and the relationship in the employee-organization connection is crucial for determining whether to rehire or not.

If the employee terminated the contract by his/her will, with no intention of working with the company, than it is of no use to reach that employee out. Also, his/her <em>behavior and responsibility</em> is indicated by the amount of notice he gave before the termination, as it is mostly required by companies in order to find adequate workforce replacement.

Most importantly, AW Direct has to have in mind the <em>particular employee needs</em> it has, and which employees caters to them. Since these employees have already worked for AW Direct, the company surely has an established HR record regarding each and every one of them.

Personal needs of the particular employee (financial, medical, or family needs) are irrelevant as they imply a biased (although ethical) take on hiring. Naturally, the same applies for hiring employees related to managers.

3 0
3 years ago
Other questions:
  • What may be the opportunity cost of buying apples?​
    6·1 answer
  • ISM __________.
    13·1 answer
  • A department using the FIFO method for process costing begins the month with 10,000 units which were 70% complete at the end of
    5·1 answer
  • Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. these industries
    5·1 answer
  • Summarize the importance of body language during an interview
    5·1 answer
  • The exchange rate for a nation's currency will usually remain constant or increase if
    11·1 answer
  • Pam didn't go see the movie IT because her friends all said she wouldn't be able to handle it. When she found out how good it wa
    14·1 answer
  • Why do the costs of owning a car continue, even after you have paid off the loan?
    13·1 answer
  • How would a manufacturer benefit by using fewer scarce resources
    5·1 answer
  • What therm decribes using tesources to produce the maximum amount of goods and services?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!