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Likurg_2 [28]
3 years ago
12

Graphical Designs is offering 10-10 preferred stock. The stock will pay an annual dividend of $10 with the first dividend paymen

t occurring 10 years from today. The required return on this stock is 5.20 percent. What is the price of the stock today
Business
1 answer:
tresset_1 [31]3 years ago
6 0

Answer:

PV of the stock today = $115.83

Explanation:

We will use the discounted cash flows approach to calculate the price of the stock today. This approach values the stock by accumulating the present value of all the expected future cash flows from the stock/asset.

As the preferred stock pays a constant dividend after equal intervals of time and for an indefinite period, it can also be treated as a perpetuity. Thus, the formula for the present value of perpetuity will be used to calculate the price of the stock at year 10 that we will discount back to today.

Present value of perpetuity = Cash flow  / expected rate of return

PV of stock at Year 10 = 10 / 0.052

PV of stock at Year 10 = 192.3076923

The value of the today will be,

PV of the stock today = 192.3076923 / (1+0.052)^10

PV of the stock today = $115.83

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6. What are complements? evonomics
hichkok12 [17]

Answer:

The answer is below

Explanation

Complements in economics is a term that is used to describe goods that are used or consumed together. For example, pencil and eraser, pen and paper, etc.

Complements are goods in economics whose value is increased when combined with other goods. Another example of complement goods is movies and popcorn

3 0
3 years ago
Mexico​'s real GDP was 1 comma 761 billion pesos in 2005 and 1 comma 822 billion pesos in 2006. Mexico​'s population growth rate
svetoff [14.1K]

Answer:

Economic Growth rate is 3.46%

Growth rate of real GDP per person is 1.96%

Explanation:

According to give data

Mexico​'s real GDP

1,761 billion pesos in 2005

1,822 billion pesos in 2006

Mexico​'s population growth rate in 2006 was 1.5 percent.

As we know

Economic growth rate is the percentage change in real GDP

Economic growth rate = ( 1822 - 1761) / 1761 = 3.46%

Growth rate of real GDP per person = % Change in real GDP - Growth rate of population = 3.46% - 1.5% = 1.96%

3 0
3 years ago
Read 2 more answers
_______ applications allow you to perform tasks on your computer.
mihalych1998 [28]

Answer:

none of the above

Explanation:

cause I think the answer is software applications which isnt on the options.

I hope this helps

5 0
2 years ago
Suppose the banking system does NOT hold excess reserves and the reserve ratio is 25%. If Melanie deposits $1,000 of cash into h
Leviafan [203]

Answer:

$3,000

Explanation:

Calculation for the increase the money supply

Using this formula

Increase in money supply=(Cash/Reserve ratio)-Cash

Increase in money supply=($1,000/0.25)-$1,000

Increase in money supply=$4,000-$1,000

Increase in money supply=$3,000

Therefore based on the information given the banking system can increase the money supply by $3,000

3 0
3 years ago
Sarah got a big raise at her job, so she bought herself a new truck. She knew it was a splurge, but she figured with her extra m
erica [24]

Answer:

Income Risk

Explanation:

income risk

she thought she had lots of income, so she took a risk

Hope this helps plz hit the crown :D

8 0
2 years ago
Read 2 more answers
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