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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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Answer:

<em>You didn't post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.</em>

Explanation:

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3 years ago
How long after a tax taking can a treasurer begin land court proceedings?
mariarad [96]

Answer:

D. 180 days

Explanation:

After a tax taking a receiver begin land court proceedings a duration of "<u>180" days</u>. Later a tax collecting, the accountability for acquisition of the offending taxes as well as assessments on those attribute no long-spun relaxes with the Tax Collector, it simply moves to the Treasurer and while a parcel has been in tax claim for <u>180 days</u>, the Town may wish to instate foreclosure on the assets within specific Land Court in Boston.

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4 years ago
Anderson Manufacturing​ Co., a small fabricator of​ plastics, needs to purchase an extrusion molding machine for ​$180 comma 000
vlabodo [156]

Answer:

1st     46,398.83

2nd    49,646.74

3rd      53,122.02

4th      56,840.56

5th       60,819.40

Explanation:

given a growing annuity we have to solve for the installement

FV = \frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}

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grow rate 0.07

interest rate 0.14

n = time     5

346,574.62 = C  \times \frac{1-(1+0.07)^{5}\times (1+0.14)^{-5} }{0.14 - 0.07}

C = 46398.8284

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svlad2 [7]

Answer:

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