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
A representative gives a seminar to investors, making a presentation about successful hedge fund strategies. It is attended by 1
jeyben [28]

Answer:

A representative gives a seminar to investors, making a presentation about successful hedge fund strategies. It is attended by 10 retail clients and 20 institutional clients. FINRA defines this as: a retail communication.

Explanation:

Hope this helps!

Mark me as Brainlineast.

3 0
3 years ago
Jasper is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in the Sahara D
den301095 [7]

Answer:

b its b  because it says he works hard and he is willing to get a good salary

3 0
3 years ago
The "invisible hand" concept suggests that
Alisiya [41]
The answer is C hope it helps
5 0
3 years ago
Mary’s Flower Boutique needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand
ElenaW [278]

Answer:

average annual transportation inventory for each alternative are 16.4383 , 5.4794,  27.3972

Explanation:

Given data

Annual demand A = 2000 flower

transit time t1 = 3 days

transit time t2 = 1 day

transit time t3 = 5 days

to find out

What is the average annual transportation inventory for each alternative

solution

we will apply here  average annual transportation inventory formula that is

average annual transportation inventory = t × A / 365

put the value t1 , t2 and t3 for annual demand 2000

so

average annual transportation inventory = t × A / 365

average annual transportation inventory = 3 × 2000 / 365 = 16.4383

and

average annual transportation inventory = t × A / 365

average annual transportation inventory = 1 × 2000 / 365 = 5.4794

and

average annual transportation inventory = t × A / 365

average annual transportation inventory = 5 × 2000/ 365 = 27.3972

8 0
3 years ago
Keurig created a new category of coffee/tea preparation by offering one-cup-at-a-time pod-style brewing with its "K-cups." Keuri
Citrus2011 [14]

Answer:

The correct word for the blank space is: transformational.

Explanation:

Transformational innovations look for providing a new product or service to the market or giving an existing product differently. The innovation aims to increase the satisfaction of consumers or to solve a problem that was not addressed properly before. Transformational innovations generate a differential advantage for businesses attracting more consumers, therefore, increasing revenue.

7 0
3 years ago
Other questions:
  • The difference between a merger and an acquisition is
    14·1 answer
  • When evaluating a Website, which of the following statements might indicate the site is based on the author’s opinion instead of
    12·2 answers
  • What is gained by using the circular flow diagram to illustrate gdp
    11·1 answer
  • Why do cultural universal exist
    14·1 answer
  • The right to receive money in the future is called
    10·2 answers
  • Think of a firm that has attained a differentiation focus or cost focus strategy. Are its advantages sustainable? Why? Why not?
    12·1 answer
  • Bert's Car Sales is a new firm that is still in a period of rapid growth. The company plans on retaining all of its earnings for
    8·1 answer
  • Meat Puppets Company purchased equipment for $7,200 on December 1. It is estimated that annual depreciation on the equipment wil
    6·1 answer
  • The buck store is considering a project that will require additional inventory of 216,000 and will increase accounts payable by
    15·1 answer
  • Prime Computers is a company that sells computers and software. The company has a website that allows customers to post comments
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!