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vekshin1
3 years ago
5

Metroplex Corporation will pay a $5.20 per share dividend next year. The company pledges to increase its dividend by 7.20 percen

t per year indefinitely. If you require a 14.00 percent return on your investment, how much will you pay for the company's stock today
Business
1 answer:
Scilla [17]3 years ago
8 0

Answer:

The maximum amount that an onvestor would be willing to pay for the stock today is $76.47

Explanation:

The constant growth model of the dividend growth adn DDM aproach will be used to calcualte the value of the stock as its dividends will grow by a constant percentage forever.

The price of the stock today based on this model will be,

P0 = D1 / r - g

Where,

D1 is the dividend expected for next year

r is the required rate of return

g is the growth rate in  dividends

P0 = 5.2 / (0.14 - 0.072)

P0 = $76.47

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Which of these are requirements faced by governments receiving structural adjustment loans under neoliberal economic policies?a.
joja [24]

The International Monetary Fund (IMF) and the World Bank (WB) offer loans (structural adjustment loans; SALs) to nations that are going through economic crises.

Option D : privatize state-owned enterprises

<h3>What is Structural adjustment?</h3>
  • To qualify for a loan from the World Bank or the International Monetary Fund, a nation must implement a set of economic reforms known as a structural adjustment.
  • Economic policies like lowering government spending, promoting free trade, and others are frequently included in structural adjustments.
  • Structure changes are often referred to as free market reforms, and they are approved if it is believed that they will increase the competitiveness and economic growth of the target country.
  • Conditions have long been attached to loans made by the World Bank and International Monetary Fund (IMF), two Bretton Woods organizations that were founded in the 1940s.
  • However, there was a concerted effort in the 1980s to use lending to poor countries experiencing crises as a platform for reform.

To Learn more About Structural adjustment refer to :

brainly.com/question/24154995

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6 0
1 year ago
A business's budget estimates yearly sales of $735,650. if the business plans to spend 38%
r-ruslan [8.4K]

The amount that it should budget for total expenses is: $456,103.

<h3>Budgeted total expense</h3>

Using this formula

Total expenses=(Yearly sales×38%)+ (Yearly sales×24%)

Let plug in the formula

Total expenses=$279,547+$176,556

Total expenses=$456,103

Therefore the correct option is A.

Learn more about total expenses here:brainly.com/question/25317819

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7 0
2 years ago
The cost of living protection rider is designed to help prevent inflation from eroding the purchasing power of the protection yo
alisha [4.7K]
The cost of living protection rider is desgned to help prevent inflation from eroding the purchasing power of the protection your policy provides is true.

4 0
3 years ago
"Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of fact, cooking was her passion and she always
sergejj [24]

Answer:

The correct answer is letter "A": Modify.

Explanation:

The SCAMPER approach is useful when analyzing how to implement new ideas into existing products or services. SCAMPER stands for <em>Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, </em>and <em>Reverse</em>.

The Modifying function implies asking questions such as "<em>What could you add to modify this product</em>?" or "<em>What element of this product could you strengthen to create something new</em>?" which looks for spotting lacking features of products to improve them according to consumers' preference.

Thus, <em>by deciding to change the spices of Indian traditional food for less spicy ingredients to fit Americans' food habits, Rashmi is using the modifying component of the SCAMPER tool.</em>

8 0
4 years ago
Suppose you purchase a 8-year AAA-rated Swiss bond for par that is paying an annual coupon of 8 percent and has a face value of
vekshin1

Answer:

97.37 SF

Explanation:

Swiss bond purchase price = 1,000 SF

Swiss bond current value = PV at maturity + PV of coupon payments  = (1000 / (1 + 0.10)^7) + (80 * (1 - (1 + 0.1)^-7) / 10% = 513.16 + 389.47 = 902.63 SF

Loss to investor who holds Swiss bond for a year = 1,000 - 902.53 = 97.37 SF

5 0
3 years ago
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