1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Olegator [25]
3 years ago
15

Goodell Corporation just paid its annual dividend of $1.75, today. Dividends for the Goodell Corporation are expected to increas

e by 27.5 percent in year one and 13.8 percent in year 2. After year two, dividends are expected to increase at a rate of 5 percent per year.
What is the current price of Goodell Corporation’s stock? Assume the required rate of return is 10 percent.
Business
1 answer:
AlekseyPX3 years ago
4 0

Answer:

current price of Goodell Corporation stock is $48.26

Explanation:

given data

annual dividend = $1.75

expected to increase 1 year = 27.5 percent

expected to increase 2 year = 13.8 percent

expected to increase per year = 5 percent

required rate of return = 10 percent

solution

we get here first dividend that is

D1 = 1.75 × (1.275) = 2.23    ...............1

D2 = 2.23 × (1.138) = 2.54    ...............2

D3 = 2.54 × (1.05) = 2.67      ...............3

and

year 2 price will be

P2 = D3 ÷ (R – g)    ...............4

P2 = 2.67 ÷ (0.10 - 0.05)

P2 = 53.4     ...............5

so current price will be

P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2

P = $48.26

You might be interested in
dit sales of $42,000 and $68,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale,
blagie [28]

Answer:

cash collections from credit sales that the company will include in its cash budget for the second month is $55,500

Explanation:

Second Month Cash Collections will include the following Cash flows:

(1) 60% of the 2nd month`s sales

(2) 35 % of the 1st month`s sales

<u>Therefore cash collections from credit sales :</u>

(1) 60% of the 2nd month`s sales ( $68,000×60%)  = $40,800

(2) 35 % of the 1st month`s sales ( $42,000× 35 %) = $14,700

Total cash collections                                                = $55,500

8 0
3 years ago
Read 2 more answers
While it sounds reasonable that companies should focus on making the products it knows how to make really well, one downside of
borishaifa [10]

Answer:

Customer may not want the product which the company is making well.

Explanation:

It is not necessary that market needs those products which the company is producing perfectly. It cannot enter into product differentiation and cannot meet customer demands and needs of specific or altered products. The company can achieve specialization and can be a niche player in the market but also on the other hand company’s business is limited to only few products at which it is perfect. It cannot allow customization to its products.

6 0
3 years ago
Granting access to a user based upon how high up he is in an organization violates what basic security premise?
hodyreva [135]

Granting access to a user based upon how high up he is in an organization violates "the principle of least privileges."

As the principle of least privileges states that a person should be given only those privileges that are needed or are necessary to perform a specific job or task and nothing more.

The principle of least privileges states that you assign users the minimum set of privileges which they require to do their jobs, according to their roles.

The principle of least privilege prevents the spread of malware on your network. An administrator or superuser with access to a lot of other network resources and infrastructure could potentially end up spreading malware to all those other systems which he gets access to.

Hence, if the organization grants access to a user based upon how high up he is then the organization violates the principle of least privileges.

To learn more about the least privileges here:

brainly.com/question/27034248

#SPJ4

3 0
1 year ago
Certain contracts, such as those involving the sale of personal property for $500 or more:_______.
djverab [1.8K]

Answer:

B. Must be written to be enforceable

Explanation:

In the United state, sale of personal property for $500 or more must be written to be enforceable. These kind of contracts are said to be within the statute of fraud.

These types of contracts are called Sales contracts which is an agreement between the buyer and seller. For the amount of money involved, a written contract provides security and peace to the mind of all those involved in the contract, hence why deals above $500 must be written to be enforceable.

8 0
3 years ago
an organization's __ refers to all relevant forces inside a firm's boundaries, such its mangers, employees, resources, and organ
Lorico [155]

Answer: Internal Environment

Explanation: An organization's internal environment refers to all relevant forces inside a firm's boundaries, such its mangers, employees, resources, and organizational culture.

5 0
3 years ago
Other questions:
  • You sit on the board of a public corporation. Your CEO has proposed taking steps to offset the carbon impact of your​ company's
    9·2 answers
  • When making a location decision at the country​ level, which of these would be​ considered?
    6·1 answer
  • Dieter is a debtor to Maxwell, the secured party. Dieter lives in Ohio and works in Kentucky. Maxwell lives in Indiana and works
    14·2 answers
  • The main premise of ________ is that effective leaders choose one or more leadership styles to influence employee expectations r
    6·1 answer
  • Monroe Construction Company uses the percentage-of-completion method of accounting. In 2013, Monroe began work on a contract it
    9·1 answer
  • You would expect a bond of an Eastern European government to pay interest rate as compared to a bond of the U.S. government. You
    14·1 answer
  • Discuss the actions taken by the read_item and write_item operations on a database.
    13·1 answer
  • By encouraging employees to experiment with new innovations that are of interest to them, bezos is supporting which of scott ber
    5·1 answer
  • The direct method for preparing and reporting the statement of cash flows reports net income and then adjusts it for items neces
    13·1 answer
  • Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!