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scoray [572]
2 years ago
10

3. The last dividend paid by New Technologies was an annual dividend of $1.40 a share. Dividends for the next 3 years will be in

creased at an annual rate of 8 percent. After that, dividends are expected to increase by 3 percent each year. The discount rate is 16 percent. What is the current value of this stock
Business
1 answer:
Nookie1986 [14]2 years ago
7 0

Answer:

$12.60

Explanation:

The computation of the current value of the stock is shown below:-

= $1.40 × (1.08) ÷ 1.16 + 1.40 × (1.08)^2 ÷ (1.16)^2 + 1.40 × (1.08)^3 ÷ (1.16)^3 + 1.40 × (1.08)^3 × (1.03) ÷ (0.16 - 0.03) × (1.16)^3

= $1.3034 + $1.2136 + $1.1299 + $8.9520

= $12.60

Therefore for computing the current value of stock we simply solved the above equation.

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Gain or loss from the sale of property must be calculated. The loss from foreclosure of property must be subtracted from wage income.
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2 years ago
You have been given the following information for Nicole's Neckties Corp.: Net sales = $2,500,000; Cost of goods sold = $1,300,0
Finger [1]

Answer:

$360,000

Explanation:

Net sales :                 $2,500,000

Cost of goods sold :  ($1,300,000)

Gross profit :              $ 1,200,000

Interest expense :          ($50,000)

Net profit :                  $ 1, 150,000

Retained earning:         ($30,000)

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Tax at 40%: =40% * $1,150,000

                                      ($460,000)

Depreciation expense : $360,000

6 0
3 years ago
Many business people believe that marketing should focus on factors other than financial goals, such as ___.
Sindrei [870]

Answer:

Corporate citizenry

Explanation:

Many business people believe that marketing should focus on factors other than financial goals, such as Corporate citizenry

3 0
3 years ago
An economist resigns her $100,000/year university teaching position to work fulltime in her own consulting business. In the firs
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Answer:

ii. Her accounting profit was $150,000

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Explanation:

The computation is shown below:

For accounting profit, it is

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And, for economic profit

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= $250,000 - $100,000 - $100,000

= $50,000

Hence, the second and third options are correct

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