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kipiarov [429]
3 years ago
6

Burnett Corp. pays a constant $8.15 dividend on its stock. The company will maintain this dividend for the next 12 years and wil

l then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

$52.91

Explanation:

With regards to the above, we will apply the dividend discount model to come up with the price for share.

Under the dividend discount model, the price for share represents the present value of all its future dividend discounted at the required rate of return.

Since the share has 12 annual equal dividend payments of 8.15 each year, while the required rate is 11%, we can apply the below annuity to arrive at the share price.

(8.15/0.11) × [ 1- 1.11^(-12) ] = $52.91

Therefore, the current share price is $52.91

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The correct answer is: door in the face.

Explanation:

The door-in-the-face technique takes place when an individual requests something more than what is offered but the offering is eventually turned down. However, the individual turning down the initial request usually places a reasonable counteroffer so the firs subject complies.

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3 years ago
Elm Corporation is a merchandising company. The year began with inventory of $32,000, Purchases for the year were $57,000, and t
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The cost of goods sold that would be reported on the incoem statement is $70000

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3 years ago
A school is watching students as they enter the football game for students who are
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The probability that the first student dressed inappropriately for the football game will be the 10th student checked is <u>3.182%</u>.

<h3>What is probability?</h3>

Probability refers to the chance that an outcome occurs given the possibility of many outcomes.

As a measure, probability represents the ratio of the outcomes from a set of equally likely outcomes.

<h3>Data and Calculations:</h3>

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Probability that the first one dressed inappropriately will be the 10th = 0.031818 (0.07 x 10/22).

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Learn more about probability at brainly.com/question/13604758

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