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Pavlova-9 [17]
3 years ago
7

A stock is expected to pay a dividend of $0 50 at the end of the year (i.e., D1=$0.50), and it should continue to grow at a cons

tant rate of 7% a year. If its required return is 12%, what is the stock’s expected price 4 years from today?
Business
1 answer:
mr_godi [17]3 years ago
3 0

Answer:

$13.1

Explanation:

The value of the stock at the end of the 4 years from now shall be determined through following mentioned formula:

Value of stock at year 4=D5/R-G

R=required rate of return=12%

G=growth rate in dividends=7%

D5=dividend at the end of year 5, which shall be calculated as follows:

D1=$0.50

D2=$0.50*1.07=$0.535

D3=$0.535*1.07=$0.572

D4=$0.572*1.07=$0.612

D5=$0.612*1.07=$0.655

Based on the above calculations, the value of stock at the end of year 4 is given as follows:

Value of stock at year 4=$0.655/12%-7%

                                       =$13.1

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Answer:

<em>B. Yes, although it may be breached in most states if there is a court order to do so.</em>

Explanation:

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3 0
3 years ago
Which of the following is something that is marketed?
fenix001 [56]
All of the above are marketed
5 0
3 years ago
The accounts of Melissa Manufacturing showed the following balances at the beginning of​ December: Account Debit Raw Materials I
Rudik [331]

Answer:

$115,000

Explanation:

Data provided as per the question is below:-

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Direct labor incurred = $7,000

The computation balance Process Inventory is shown below:-

Balance in the​ Work-in-Process Inventory = Beginning balance + Direct material issued + Direct labor incurred

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3 years ago
A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 15 loans per da
anyanavicka [17]

Answer:

a) 46.7, 80 b) 20, 60   c) yes

Explanation:

a) % utilization= utilization/design capacity × 100

                       = 7/15 × 100

                       = 46.7%

   % efficiency= efficiency/design capacity × 100

                              = 12/15 × 100

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b) Utilization= 2/10 × 100 = 20%

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c) A system with higher efficiency ratios will always have higher utilization as these systems will have lesses number of failures

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An investment banker who earns more than $1 million a year, a food service worker who makes minimum wage, and a teacher with a salary of $50,000 per year represent the presence of social <u>inequality </u>within society.

<h3>What is inequality?</h3>

Inequality can be defined as the way in which  income or wealth are not distributed equally  in a society as some people earn more than others.

Hence, their is the presence of social inequality within a society if a  investment banker earn $1 million a year, a food service worker makes minimum wage, and a teacher earn $50,000 per year.

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5 0
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