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WITCHER [35]
3 years ago
15

You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $1.25 in divid

ends and $32 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is ________ if you wanted to earn a 10% return.
A. $30.23
B. $24.11
C. $26.52
D. $27.50
Business
1 answer:
Vlad1618 [11]3 years ago
5 0

Answer:

The maximum that should be paid for the stock today is $30.23.

Explanation:

The total return on a stock is made up of dividend received on the stock plus the capital gain received from selling the stock. The holding period is one year that means a 10% return on the amount invested in required for one year. We need to calculate the present value of the total of selling price plus the dividend to calculate the price of the stock today. As 10% return is required, the discount rate is also 10%.

PV = (1.25 + 32) / 1.1

PV = 30.227 rounded off to 30.23

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One of the advantages of a c corporation is ease of formation true or false
ziro4ka [17]

Answer:

true

Explanation:

A corporation is a  form of business that gives room for seprate , legal entity but it is usually guided by some group of intelectuals referred to as board of directors. The corporation structure is the most advantageous way to kick start a business because it is  the corporation operates as a separate entity.

Corporation has all the legal rights of an individual except some little limitations on  right to voting and some other little limitations.

5 0
3 years ago
A customer has contacted you and expressed anger about the service provided by your company. During the call, you discover that
Furkat [3]

Answer:

listen to the entire complaint

Explanation:

In the scenario being described, you should listen to the entire complaint. This will make the customer feel as though you are paying attention and listening/understanding her frustration and by doing so you might also acquire new information regarding the issue that was not previously shared to the other technician. Once the client has finished venting her anger and explaining the situation, only then should you begin to offer a solution.

6 0
3 years ago
A company produces 100 cars in the year 2017 but only manages to sell 90 of the cars. In the year 2018 they sell the 10 cars tha
forsale [732]

Answer:

The question has below options:

A. The unsold cars count as inventory investment for 2017. 2018 GDP is not affected.

B.The unsold cars count as consumption spending in 2018.

C. The unsold cars count in the inventory investment category for both years and count as consumption spending in 2018.

Option B is the correct answer

Explanation:

The unsold stock of 10 cars in 2017 is classified as investment  since  the cost of producing them is expected to yield returns in 2018 when they have been sold.

However, the unsold stock of 2017 becomes 2018 consumption of GDP since it relates to household expenditure in 2018, as a result it is accorded such classification.

It cannot be classified as government expenditure as the government is not the one purchasing the vehicle

Also, the ten cars have nothing to do with import or export as they are trade within the domestic economy

7 0
3 years ago
A municipal issuer official has lost her re-election campaign and has just left elected office. She is soliciting political cont
Sindrei [870]

Answer: Because the issuer official no longer holds elected office, the contribution limits of Rule G-37 do not apply.

Explanation:

Rule G-37 is a way to ensure that Municipal Issuers are not unduly influenced by those who donated to their campaigns to get into a position to become Municipal Issuers.

It prohibites for 2 years, Municipal Finance Professionals (MFP) amongst others from engaging in municipal securities business with a Municipal issuer.

An exception however, is that if the MFP is entitled to a vote for the Official in question, they can donate no more than $250 per election.

Seeing as the Municipal Issuer Officer has lost her position, the MFP need not worry about this $250 limit as it no longer applies to her. The MFP is free to donate $500 to the "clean-up" campaign.

5 0
3 years ago
One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar
raketka [301]

Answer:

She is better off by $40,

Please kindly go through the explanation section for rest of the answers.

Explanation:

From the Question,

Grocery saving = 40%

Laptop saving = 2.5%

Absolute saving in grocery = $4

Absolute saving in Laptop =$10

Yes he should sacrifice 20 mins to save $10 since he does the same for less savings

Second case:

Since Ted is depositing money for only 6 months at 10% interest rate, he is giving up half his annual interest of (0.1*750)/2 = $37.5

Third case:

Interest accrued on student loan = 0.07*2000 = $140

Interest on credit card = $75 + (0.07*1500) = $180

She is better off by $40.

7 0
3 years ago
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