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Vlad1618 [11]
3 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]3 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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You purchased a bond 69 days ago for $891.26. You received an interest payment of $24.00 56 days ago. Today the bond’s price is
inna [77]

Answer:

1.97%

Explanation:

The formula to calculate the holding period return is:

HPR=(Income generated+(ending value-initial value)/Initial value)*100

Income generated= $24

Ending value= $884.89

Initial value= $891.26

HPR=(24+(884.89-891.26)/891.26)*100

HPR=(24+(-6.37)/891.26)*100

HPR=(17.63/891.26)*100

HPR=0.0197*100

HPR= 1.97%

According to this, the holding period return (HPR) on the bond as of today is 1.97%.

4 0
3 years ago
A manger is described by subordinates as someone who inspires hard work by treating people kindly and giving employees individua
Levart [38]

Answer:

Referent

Explanation:

The referent power refers to the power in which the employees capacity, capability, skills and knowledge, hard work being liked by the other employees. Ths could be gained from the leadership skills and personality

So according to the given question since the manager described by subordinates through inspiring hard work by giving them attention and praise

This represents the referent power

4 0
3 years ago
A customer owns 107 shares of ABC common stock. ABC declares a rights offering, with the terms being that for every 10 rights te
Digiron [165]

Answer: B. The shareholder can buy a maximum of 11 shares by paying $242

Explanation:

The company declares that for every 10 shares owned, the shareholder is qualified to buy a additional share, and for shares not up to 10, they can also be rounded up to buy an additional share.

Since the shareholder already owns 107 shares and wishes to subscribe to the declaration, it means that he's qualified to buy

107÷10 = 10.7shares or 10, 7/10.

Since any fraction can be rounded up to buy an additional share, the shareholder can buy 11 shares

At $22 each

The shareholder will pay $22 × 11 shares

Which is $242.

4 0
3 years ago
Explain how renting or buying a home is connected with someone's ability to be<br> generous?
arsen [322]

Answer: because if the seller needs money and  is trying to sell the house you are helping them out

Explanation:

3 0
3 years ago
Shelp Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.15 Direct labor $ 3
MArishka [77]

Answer:

The total amount of period costs incurred to sell 9,000 units is closest to $49,500

Explanation:

In order to calculate the total amount of period costs incurred to sell 9,000 units we would have to make the following calculation:

Total amount of period costs incurred to sell 9,000 units=Sales commissions+Variable administrative expense+Fixed selling and administrative expense

Sales commissions= 9,000*0.5=$4,500

Variable administrative expense= 9,000*0.5=$4,500

Fixed selling and administrative expense= $40,500

Total amount of period costs incurred to sell 9,000 units=$4,500+$4,500+$40,500

Total amount of period costs incurred to sell 9,000 units=$49,500

4 0
3 years ago
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