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mihalych1998 [28]
4 years ago
7

Vincent’s Hotel currently pays a $2.20 common stock dividend. Dividends have been recently growing at a 3% annual rate and are e

xpected to continue growing at this rate for the next 2 years. Thereafter, the growth rate is expected to be 0% for the foreseeable future. What is the current value of Vincent’s Hotel common stock to an investor requiring 17% rate of return?
Mathematics
2 answers:
Lerok [7]4 years ago
8 0

Answer:

<u>The current value of Vincent's Hotel common stock is US$ 12.95, that fulfills the requirement of an investor of 17% of rate of return annually.</u>

Step-by-step explanation:

1. Let's review the information given for answering correctly the question:

Currently common stock dividend = US$ 2.20

Annual growth of the dividend for the next 2 years = 3%

Annual growth of the dividend after the next 2 years = 0%

2. What is the current value of Vincent’s Hotel common stock to an investor requiring 17% rate of return?

17% = 0.17

Current value of Vincent's Hotel common stock = 2.20/0.17

<u>Current value of Vincent's Hotel common stock = US$ 12.95</u>

madreJ [45]4 years ago
3 0

Vincent's current hotel stock value is $ 2.574

Further Explanation

Stock price = value to be paid at this time (now)

Whereas the dividend and selling price are $ 2.20 a year later so that the present value is needed

Stock price = ($ 2.20 + $ 0.374) / (1 + 17%) = $ 2.574

Thus, the maximum price you dare pay for the stock is $ 2.574

This means that if the stock is offered at a price above $ 2.574, then it is rejected and vice versa if the stock is offered at a price below $ 2.574, the stock is purchased.

Features of Common Stock

  • Voting Rights
  • The right to be represented if unable to attend the RUPS (proxy rights)
  • Right to Pre-emptive Shares, namely when an issuer issues new shares, old shareholders can buy new shares (if desired) offered according to the portion of their shares so that the composition of ownership remains the same
  • Stock Type
  • Other rights
  • Dividends distributed according to the proportion of shares owned proportionally.
  • The distribution of the remaining assets during liquidation (company liquidation) also depends on the proportion of shares owned proportionally.

Learn More

Current Stock Value  brainly.com/question/14005389

common stock brainly.com/question/14005389

Detail

Class: Middle School

Subject: Mathematics

Keywords: stock, value, price

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san4es73 [151]

Answer:

V_2 = 37.5

Step-by-step explanation:

Given

Volume = 16

Represent the height of the smaller cylinder with h and its radius with r.

The height (H) of the larger cylinder is

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And the radius (R) is;

R = r + 25\% * r

Required

Determine the volume of the larger cylinder

Volume of the smaller cylinder is:

V_1 = \pi r^2h

Substitute 16 for V1

16 = \pi r^2h

While the volume of the larger cylinder is:

V_2 = \pi R^2H

We have that:

H = h + 50\% * h and R = r + 25\% * r

--------------------------------------------------------------------------------------------------------------

Simplify both expressions

H = h + 50\% * h

H = h + 0.50*h

H = h + 0.50h

H = 1.50h

R = r + 25\% * r

R = r + 0.25*r

R = r + 0.25r

R = 1.25r

--------------------------------------------------------------------------------------------------------------

Substitute values for R and H in V_2 = \pi R^2H

V_2 = \pi * (1.25r)^2 * 1.50h

V_2 = \pi * 1.5625r^2 * 1.50h

Collect Like Terms

V_2 = 1.50 * 1.5625* \pi*r^2 * h

V_2 = 2.34375* \pi*r^2 * h

V_2 = 2.34375* \pi r^2h

Recall that: 16 = \pi r^2h

V_2 = 2.34375* 16

V_2 = 37.5

<em>Hence, the volume of the larger cylinder is 37.5</em>

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What is the component form of the vector from point A (-3, -7) to point B (-8, 1)?
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Therefore the component form of the vector that goes from point A to point B is:

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1 year ago
If x=1+√2, evaluate x³+1/x³.
aleksandr82 [10.1K]

Answer:

10√2

Step-by-step explanation:

If x=1+√2, evaluate x³+1/x³

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Answer:

960 ft^2

Step-by-step explanation:

There are 9 surfaces forming the solid.

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area of square = (side)^2

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A = 5 * (12 ft)^2 + 4 * (12 ft * 10 ft)/2

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A = 960 ft^2

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