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
valkas [14]
3 years ago
5

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth

rate falling off to a constant 8 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $1.45, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
user100 [1]3 years ago
7 0

Answer:

The  current share price is $71.05

Explanation:

P3 = D3(1 + g)/(R – g)

    = D0[(1 + g1)^3](1 + g2)/(R – g)

    = [$1.45*(1.20)^3(1.08)]/(0.11 – 0.08)  

    = $90.20

The price of the stock today is the PV of the first three dividends, plus the PV of the Year 3 stock price given by:  

P0 = $1.45(1.20)/1.11 + $1.45[(1.20)^2]/1.112 + $1.45[(1.20)^3]/1.113 + $90.20/1.113

    = 1.568 + 1.695 + 1.832 + 65.958

    = $71.05

Therefore, The  current share price is $71.05

You might be interested in
SUBSCRIBE TO GOLDIFY(the one with a dark profile and makes among us videos) FOR BRAINLIEST
Ratling [72]

Answer:

ok thanks for the points can i get brainliest

Explanation:

3 0
3 years ago
Read 2 more answers
n computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers: (CPA adap
kykrilka [37]

Answer:

C. current period costs less cost of beginning work-in-process inventory

Explanation:

While calculating the current period manufacturing under FIFO method the cost of beginning work in process will be deducted as was incurred in previous period, for the current period only the current period cost will be considered.

Though the FIFO method is based on first in first out principle where opening inventory will be sold first, but the cost incurred earlier in previous period will not be considered.

Correct statement is C

3 0
3 years ago
A worker’s positive reaction to a negative performance review from an employer might be to ______.
wel

A worker’s positive reaction to a negative performance review from an employer might be option A "ignore the criticisms made at the review." Option A seems to be the best fit for this question because option B would I consider a negative reaction because addressing the employer over the negative review could start a fight and the other two seem too irrelevant for this question.

Hope this helps.

3 0
3 years ago
Read 2 more answers
Simone is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work an
AlekseyPX

Answer:

Simone will be considered unemployed.

Explanation:

Simone is 26 years old, this means that she is in the adult population. She used to work as a copy editor for a newspaper. She has lost her job and is actively looking for work. She will be considered an unemployed person and will be included in the labor force.  

Those workers who do not have a job currently but are actively looking for one are considered unemployed. Those who are without jobs but are not actively looking for one are considered discouraged workers and are not included in the labor force. The labor force includes only employed and unemployed workers.

5 0
3 years ago
While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has
puteri [66]

Answer:

The correct answer is $0,20.

Explanation:

The marginal cost, at each level of concrete production, indicates the costs we incurred in carrying out said production. Basically, it is an indicator that will allow us and help to make decisions regarding the preparation and production of goods and services.

In the previous case, the cost of buying two tacos for $ 75 each plus a $ 80 bedid is as follows:  

Tacos: $ 75 * 2 = $ 1,50

Drink: $ 80

TOTAL = 2,30

For its part, the second option is priced at $ 2,50

Subtracting the results, the marginal cost is defined as follows:

$ 2,50 - $ 2,30 = $ 0,20

6 0
3 years ago
Other questions:
  • Total revenue minus explicit and implicit costs is called ::
    15·1 answer
  • Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amo
    12·1 answer
  • On July 1, 2021, Tremen Corporation acquired 30% of the shares of Delany Company. Tremen paid $3,160,000 for the investment, and
    11·1 answer
  • Buyers in country X prefer to use the older, cheaper version of Firm A's product although it is bulkier and less user-friendly.
    10·1 answer
  • Which of the following is a business strategy in which a product in its most basic version is provided free of charge but the co
    7·1 answer
  • Retail managers can use ________ to determine which inventory items require the most attention.
    10·1 answer
  • Dotted Swiss, dimity, and duck are listed in which one of these fabric categories?
    11·1 answer
  • The three variables which affect saving money are:
    12·1 answer
  • During the most recent month, the following activity was recorded:_______.
    14·2 answers
  • Both friends agree that the demand and supply for hybrid cars will increase. For each of the following situations, determine whe
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!