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Vlad1618 [11]
2 years ago
11

Low Fly Airline is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of 15% per ye

ar. The required return is 30%. What is the intrinsic value of the stock?
Business
1 answer:
Bond [772]2 years ago
4 0

Answer:

Intrinsic value of the stock = $46.67

Explanation:

D1 = $7

Required return = 30%

Growth rate = 15%

Intrinsic value of the stock = D1 / (Required return - Growth rate)

Intrinsic value of the stock = $7/(0.3 - 0.15)

Intrinsic value of the stock =  $7 / 0.15

Intrinsic value of the stock = $46.67

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In the united states, in practice, the differences among the measures of inflation computed using the cpi, the gdp deflator, and
velikii [3]

In the united states, in practice, the differences among the measures of inflation computed using the cpi, the GDP deflator, and the PCE deflator are small.

In economics, inflation is a widespread boom in the fees of goods and offerings in an economy. when the general fee degree rises, each unit of currency buys fewer items and offerings; therefore, inflation corresponds to a discount inside the purchasing energy of money..

whilst excessive inflation is commonly considered dangerous, a few economists accept as true that a small quantity of inflation can help drive a financial boom. the opposite of inflation is deflation, a scenario wherein costs have a tendency to say no. The Federal Reserve objectives a 2% inflation rate, based on the patron fee Index (CPI).

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1 year ago
Question #2: Why should we simplify expressions in algebra Using race
rusak2 [61]

Answer:

Why should we simplify expressions in algebra Using race?

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4 0
2 years ago
Read 2 more answers
In its most recent financial statements, Del-Castillo Inc. reported $55 million of net income and $840 million of retained earni
Mashcka [7]

Answer:

Difference in retained earnings

= $840,000,000- $825,000,000

= $15,000,000

Dividend paid = Net income - Difference in retained earnings

Dividend paid = $55,000,000 - $15,000,000

Dividend paid = $40,000,000

Explanation:

In this case, there is need to determine the difference in retained earnings, which equal retained earnings at the end minus retained earnings at the beginning.

Dividend paid is calculated as net income minus difference in retained earnings.

8 0
3 years ago
Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. 11) The firm has 55,000 shares of stock
vovikov84 [41]

Answer:

A) $474,000

Explanation:

Since Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000, it means that equity should be $131,000.

The current price of Balsco's stock is $11 per share and total shares outstanding are 55,000, which results in a total market value of $605,000. If you subtract total equity from the total market value = $605,000 - $131,000 = $474,000

6 0
3 years ago
Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of the following costs s
pashok25 [27]

Answer:

The correct answer is A

Explanation:

As per the UNICAP (stands for Uniform Capitalization) rules, the person have to capitalize the cost for creating the assets, which means or defines as to capitalize the raw materials, labor cost and other indirect as well as direct costs that is attributable to the production of the assets.

So, the costs which is to be capitalized in respect to inventory are the repacking cost, which is involved in the indirect supplies and other materials and the off site storage cost is involves in the rental of the facilities and equipment.

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2 years ago
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