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Alik [6]
3 years ago
10

GEO Inc. has paid annual dividends of $.41, $.47, and $.53 a share over the past three years, respectively. The company expects

to now maintain a constant dividend. At a discount rate of 14.4 percent, what is the current value per share?
Business
1 answer:
Anna11 [10]3 years ago
7 0

Answer:

current price =3.68

Explanation:

annual dividends of $.41, $.47, and $.53 over the past three years

discount rate of 14.4%

current value per share will be given by the formula

current price = last dividend/discount rate

in this case we have that

current price = 0.53/0.144=3.68

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Black_prince [1.1K]

The advantage to Siddoway if she decides to incorporate her business is Corporations have an enhanced ability to attract financing.

A Corporations is an organization (usually a group of people or a legal entity) authorized by the State to act as a single entity and legally recognized as such for a specific purpose. Early incorporated entities were established by charter. Most jurisdictions now permit the formation of new companies by registration.

The company is managed and supervised by its directors and officers. Directors are appointed by shareholders and are responsible for the overall management and corporate governance of the company. The directors appoint officers who are responsible for the day-to-day management and operations of the company.

A Corporations company consists of shareholders, a board of directors and officers. When incorporating a company, owners and managers must be organized and given responsibilities and rights according to the rules laid down in the state corporate law.

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7 0
2 years ago
You will receive $500 tomorrow. You will receive an additional nine cash flows growing at the rate of inflation of 2 percent per
kobusy [5.1K]

Answer:

please find the solution which is defined as follows:

Explanation:

please find the table in the attached file:

  • In point A, The Cashflow value = 5474.86 (premised on the description of cash flows).
  • In point B, the above table the PV of cash flow represents the real cost of its earned cash flow.
  • In point C, its actual value of the cash flow source is 3643.921.
  • In point D, The observation would be that the value of money year after year is depleting and is worth far more as inflation is weak.

7 0
3 years ago
Dave brags to his dad that his $45,000 starting salary as a computer programmer is much higher than his dad's $28,000 starting s
ivanzaharov [21]

Answer:

Option C Incorrect; adjusting for price changes, his salary is less than his dad's salary  

Explanation:

Adjustment to price changes = (Amount received n years ago divided by Price Index n years ago) * Price Index today

Adjustment To price changes = ($28,000 / 110.8) * 180.5 = $45613.7

The amount $28,000 is worth $45,613.7 in todays value which means that if we adjust for price changes, Dave is incorrect because his salary is worth less by an amount $613.7 from his father's salary.

6 0
3 years ago
Read 2 more answers
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $526 and B for $53
MrMuchimi

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
Explain what is meant by the present value of an ordinary annuity. Choose the correct answer below. A. It is the value of any si
likoan [24]

Answer:

<u>Letter D is correct.</u>  It is the value of the unpaid balance on an annuity at the specified point in time.

Explanation:

An ordinary annuity is the making of fixed payments over a fixed period of time. To specify the value of an annuity present in an ordinary annuity, one must know the established interest rates. When interest rates are higher, the present value of the ordinary annuity is reduced, and when interest rates are lower the present value is higher.

7 0
3 years ago
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