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Julli [10]
3 years ago
13

A stock is expected to pay a $0.45 dividend at the end of the year (D1 = 0.45). The dividend is expected to grow at a constant r

ate of 4% a year, and the stock's required rate of return is 11%. What is the expected price of the stock 10 years from today?
a. $12.65
b. $ 9.15
c. $18.25
d. $ 9.52
e. $ 6.02
Business
1 answer:
irinina [24]3 years ago
8 0

Answer:

d. $ 9.52

Explanation:

The computation of the expected price of the stock 10 years from today is shown below:

= Dividend at year 10 ÷ (Required rate of return - growth rate)

where,

Dividend at year 10 is

= $0.45 × (1 + 0.04)^10

= $0.67

So, the expected price is

= $0.67 ÷ (11% - 4%)

= $9.52

By applying the formula we can easily find out the expected price of the stock

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5. If you enter a road from a driveway, alley or roadside you must:
8_murik_8 [283]

Answer:

If you enter a road from a driveway, alley or roadside you must:

Yield to vehicles already on the main road.

Explanation:

The concept of right to way is supposed to be understand since there are no law that actually grants the right of way since it only states when the right of way is to be yielded. This concept has to be considered and well understood by all motorists to avoid conflict on roads. These conflicts often cause accidents which can lead to possible loss of life. Thus the rules governing right of way have to be taken very seriously to minimize the probability of accident.

In the following cases the right of way has to be yielded;

1. When one is at a yield sign for example; a stop sign

2. At a pedestrian crosswalk

3. At intersections that don't have traffic lights or where there is uncontrolled movement

4. At T intersections where one has to yield to motorists already on the main road

5. When one needs to turn left into the main road, one needs to yield to oncoming vehicles on the main road

6. One one is moving from a parking lot to the pavement

In our case, rule number four applies since one needs to enter from a driveway alley or roadside to the main road. This means that one on the driveway needs to yield to vehicles already on the main road.

3 0
3 years ago
Read 2 more answers
Lydia Hagberg went to her bank, California Federal Bank, FSB, to cash a check made out to her by Smith Barney (SB), an investmen
user100 [1]

Answer:

Yes the absolute privilege for communications made in judicial or other official proceedings apply to statements made when a citizen contracts the police to report suspected criminal activity

Explanation:

Absolute priviledge for communication is the provision that covers a person from legal action on grounds of defamation for statements made. Under certain circumstances a person can make defamatory statements and be immune from legal action.

In this scenario Lydia Harberg went to California Federal Bank to cash a check that was suspected to be fake.

Nolene Showalter contacted SB to confirm. Based on the information provided at that time, the check was confirmed to be fake. The implication was that a fraud was being perpetrated.

So his action of calling the police is justified. SB only verified they gave out wrong information the first time

8 0
3 years ago
Nicole owns and operates two restaurants. The revenue of the first restaurant at time t is f(t) dollars, and the revenue of the
kati45 [8]

Answer:

F(t)=f(t)+g(t) represents the TOTAL revenue at time t.

Explanation:

f(t) is the revenue at the time t at the first restaurant.

g(t) is the revenue at the time t at the second restaurant.

If we want to know the TOTAL revenue at the time t, we would sum these quantities:

TOTAL revenue = f(t)+g(t)

So F(t)=f(t)+g(t) represents the TOTAL revenue at time t.

7 0
3 years ago
Ben Gordon, Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembling department
FromTheMoon [43]

Answer:

$90,000

Explanation:

We could allocate assembly overhead on the basis of the parts used in the assembly process:

wheels ⇒ 300,000 x 2 parts = 600,000 parts

<u>seats ⇒ 600,000 x 3 parts = 1,800,000 parts</u>

total parts assembled     2,400,000 parts

overhead costs per part assembled = $360,000 / 2,400,000 parts = $0.15 per part

so the overhead allocated to wheels should be = 600,000 parts x $0.15 per part = $90,000

7 0
3 years ago
In October 2010, the amount of money held by individuals and companies was $893.4 billion; checkable deposits owned by the same
Debora [2.8K]

Answer:

The M2 for October 2010 is $4.4145 trillion

Explanation:

In this question, we are asked to calculate the value of M2 for the month of October 2010. We use a mathematical approach for this;

Mathematically:

M2 = M1 + Savings deposits + Money market funds + Certificates of deposit + other time deposit

We identify the parameters in the question as follows:

Savings deposit = $989.4 billion

Money Market funds = $1.9423 trillion

Certificates of deposit = $345.6 billion

Other time deposit = $243.8 billion

M1 = $893.4 billion

We thus calculate M2 as = $989.4 billion + $1.9423 trillion + $345.6 billion + $243.8 billion + $893.4 billion = $4.4145 trillion

6 0
4 years ago
Read 2 more answers
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