1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VladimirAG [237]
3 years ago
12

The Sports Club plans to pay an annual dividend of $1.20 per share next year, $1.12 per share a year for the following two years

, and then a final liquidating dividend of $14.20 per share four years from now. How much is one share of this stock worth to you today if you require a rate of return of 18.7 percent of this risky investment?
Business
1 answer:
Delicious77 [7]3 years ago
7 0

Answer:

$9.63

Explanation:

Data provided in the question:

Year              Annual dividend paid

   1                                      $1.20

   2                                      $1.12

   3                                      $1.12

   4                                      $14.20

Now,

Year       Annual dividend paid        Present value factor     Present value

   1                              $1.20                          0.84246               1.011

   2                             $1.12                          0.84246               0.7949

   3                             $1.12                          0.59793             0.6696

   4                             $14.20                       0.50373             7.1529

===============================================================

Worth of stock = 1.011 + 0.7949 + 0.6696 + 7.1529

= $9.6284 ≈ $9.63

Note:

Present value factor = [ 1 ÷ (1 + 0.187)ⁿ]

here,

n is the year

You might be interested in
A mining company declared a liquidating dividend. The journal entry to record the declaration must include a debit to1. Retained
gregori [183]

Answer: Option (2)

Explanation:

Paid in capital is referred to as or known as amount of the capital which is paid in by the investors during the preferred or common stock issuance, including par value of shares in addition to the amount in excess of the par value. The paid in capital tends to represent funds which are raised by organization through selling of equity.

6 0
2 years ago
Jim Smith is a salesman who receives a $1,100 draw per week against his commission. He receives a 12% commission as an incentive
blondinia [14]

Answer:

$29,000

Explanation:

Given that:

  • Draw per week: $1,100
  • Commission rate: 12%
  • Sales for Jim were $205,000 for the month.
  • 4 weeks in a month

Assuming a four-week month, Jim's commission :

Commission on revenue + commission of total draws

= $205,000*12% + 4*$1,100

= $24,600+ $4,400

= $29,000

Hope it will find you well.

3 0
3 years ago
What is a lien and when can it be used/
Talja [164]

A lien is a claim against an asset, often to get a loan. All debts related have to be paid before it is removed.

3 0
3 years ago
Read 2 more answers
A company had an unadjusted Cost of Goods Sold of $1,690,000. The company closes its underapplied or overapplied overhead to Cos
lakkis [162]

Answer:

"$1,673,750" is the appropriate answer.

Explanation:

The given values in the question are:

Applied overhead,

= $666,250

Actual overhead,

= $650,000

Unadjusted cost,

= $1,690,000

Now,

The overapplied overhead will be:

= Applied \ overhead-Actual \ overhead

= 666,250-650,000

= 16,250 ($)

hence,

The goods sold's adjusted cost will be:

= Unadjusted \ cost-Overapplied \ overhead

= 1,690,000-16,250

= 1,673,750 ($)

8 0
2 years ago
"helen is a u.s. citizen and cpa, who moved to london, england three years ago to work for a british company. this year, she spe
balu736 [363]

<u>Answer:</u>

<em>Exclusion upto  $103,900. Taxable amount is $6100.</em>

<u>Explanation:</u>

<em>US natives</em>, just as changeless occupants, are required to document ostracize expense forms with the government consistently paying little mind to where they dwell.

Alongside the <em>common assessment</em> form for money, numerous individuals are likewise required to present an arrival revealing resources which are held in ledgers in remote nations. Notwithstanding where you live, you should record <em>expat imposes in the US.</em>

3 0
3 years ago
Other questions:
  • A company recorded 2 days of accrued salaries of $2,150 for its employees on January 31. On February 9, it paid its employees $8
    8·1 answer
  • A firm has a debt-to-equity ratio of 1.0. If it had no debt, its cost of equity would be 12 percent. Its cost of debt is 9 perce
    11·1 answer
  • Kidzo Inc., a toy car company, has several groups in its manufacturing unit dedicated to do different tasks. For example, it has
    10·1 answer
  • You make $45,000 per year at your current job with Whiz Kids Consultants. You are considering a job offer from Brainiacs, Inc.,
    6·1 answer
  • Stories Company purchased equipment and these costs were incurred:Cash price $22,500Sales taxes 1,800Insurance during transit 32
    5·1 answer
  • Should eyewitness testimony be allowed in the courtroom? Write at least three paragraphs discussing your position.
    13·1 answer
  • What is not one of the five main catogories of risk faced by individuals?
    11·1 answer
  • Meet a market meaning?
    11·1 answer
  • Culver Corporation purchased machinery on January 1, 2022, at a cost of $288,000. The estimated useful life of the machinery is
    14·1 answer
  • Melanie's country has recently gone through a change in governance. The new government has enacted policies to reduce barriers t
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!