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postnew [5]
3 years ago
15

A firm does not expect to pay dividends in the next four years. beginning five years from today, the firm expects to pay a const

ant dividend of $4.75 per year forever. investors required rate of return on the firm's stock is 10 percent. what is the price of the stock today?
Business
2 answers:
liraira [26]3 years ago
7 0
Given:
dividend: 4.75 per year forever
required rate of return: 10%

<span>Since the dividend is always the same, the stock can be viewed as an ordinary perpetuity with a cash flow equal to D every period. The per-share value is thus given by
</span>
P₀ = D/R

P₀ = Price today
D = dividend per year
R = required rate of return

P₀ = 4.75 / 0.10 = 47.50

The price of the stock today is $47.50

abruzzese [7]3 years ago
4 0
From the data given above, the investor required rate of return on the firm's stock is 10% and is equal to $4,75 that is expected to be paid each year.
If $4.75 = 10%, then the price of the stock which is 100% will be equal to $4,75 * 10= $47.50.
Therefore, the current price of the stock is $47.50.
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Answer:

The use of the bank's funds for this fundraiser would be justified when the bank's goal is to maximize profit by:

giving the bank public relations boost, thereby improving its public image.

Explanation:

The creation of publicity opportunities through this fundraiser enhances the bank's activities.  Awareness of its services is created through the sponsorship.  People perceive the bank as a charity-supporting organization, which cares for the welfare of the less-privileged.  The fundraiser creates huge goodwill.  Public relation is, therefore, critical in helping the bank to engage its diverse publics across various platforms, including the accruing intangible benefits that derivable from the seemingly unprofitable effort.

5 0
3 years ago
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Tom [10]

Answer:

$76,260

Explanation:

Calculation to determine the total period cost for the month under variable costing

Using this formula

Total Period cost = Variable selling and administrative cost + Fixed manufacturing overhead + Fixed selling and administrative cost

Let plug in the formula

Total Period cost = ($14 × 1,760) + $18,180 + $33,440

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Therefore the total period cost for the month under variable costing is $76,260

8 0
3 years ago
If a business is in need of working capital, one option is to use a(n) ________ that will buy the company's account receivables
vesna_86 [32]

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factoring company

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5 0
3 years ago
Read 2 more answers
a written document prepared by an entrepreneur that describes all the relevant external and internal elements involved in starti
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A written document prepared by an entrepreneur that describes all the relevant external and internal elements involved in starting a new venture is known as a(n) business plan.

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A business plan describes all the factors and elements that will be required in the new business.

A business plan makes it easier to execute the plans made for a business or a new venture.

To learn more about business plan, click here:

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5 0
1 year ago
Help pls
Gwar [14]

Answer:

Why should a research check that their information is reliable?

It is important to critically evaluate sources because using credible/reliable sources makes you a more informed writer. Think about unreliable sources as pollutants to your credibility, if you include unreliable sources in your work, your work could lose credibility as a result.

How do you determine the validity and reliability of data?

Reliability can be estimated by comparing different versions of the same measurement. Validity is harder to assess, but it can be estimated by comparing the results to other relevant data or theory.

How do you, as a student, organize information?

Students arrange information hierarchically, cate- gorically, sequentially, or in other ways. They discover and depict the overall structure of the material as well as how discrete pieces of information fit together. They organize and reorganize generalizations, principles, concepts, and facts.

Why should a researcher organize their data?

Choosing a logical and consistent way to name and organise your files allows you and others to easily locate and use them. ... Organising your files carefully will save you time and frustration by helping you and your colleagues find what you need when you need it.

What are different methods for organizing information?

Chronological Patterns. Sequential Patterns. Spatial Patterns. Compare-Contrast Patterns. Advantages- Disadvantages Patterns. Cause-Effect Patterns. Problem-Solution Patterns. Topical Patterns.

What does it mean to analyze information?

Information analysis is the systematic process of discovering and interpreting information.

What is the benefit of analyzing information?

Analysis is the process of breaking a complex topic or substance into smaller parts in order to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (384–322 B.C.), though analysis as a formal concept is a relatively recent development.

Why is it important to analyze information before making a decision?

Before analyzing data, it is important to first clearly understand for whom and for what purpose you are conducting the analysis. ... Therefore, conducting the analysis to produce the best results for the decisions to be made is an important part of the process, as is appropriately presenting the results.

now i hope this helps you

3 0
2 years ago
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