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Wewaii [24]
2 years ago
8

Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $7.50. Afterwards, the

company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 16 percent, what is the current share price?
Business
1 answer:
andreev551 [17]2 years ago
8 0

Answer:

Current share price =$77.81

Explanation:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{D4}{(1+ke)^4}+\frac{P4}{(1+ke)^4}.

where P4 = \frac{D5}{ke-g}

where D5 = D4(1+g)

Price of the stock today = \frac{16}{(1+0.16)^1}+\frac{12}{(1+0.16)^2}+\frac{11}{(1+0.16)^3}+\frac{7.50}{(1+0.16)^4}+\frac{7.50(1.06)}{(0.16-0.06)(1+0.16)^4} = $77.81

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We have to ask our coworkers if they think it is okay if we take one.

Option C

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In work ethics, workers are not permitted to work stationary for home use because the content is meant to be used for workplace purposes. A legal pad can be removed without permission from school, and stealing should therefore be discouraged. Consult with the store man in charge to permit you to take the office to be used at home.

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7 0
3 years ago
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The mickey and mouse cat food factory runs an aggressive marketing campaign and much to the? delight, orders surge to twice thei
Setler79 [48]
The impact on the order of the quantity will be able to get a 40% higher. It is because if the mickey and mouse cat food factory runs the marketing campaign to the delight order surge twice to their previous level and their operation manager uses the EOQ or the Economic Order Quantity, it is able to minimize the ordering cost and the total of the holding costs, producing an order quantity of 40% higher.
7 0
3 years ago
Weighted Average Cost Flow Method Under Perpetual Inventory System
Fudgin [204]

Answer and Explanation:

The computation of the cost od merchandised sold for each sale and the inventory balance after each sale is presented in the attachment below;

The perpetual inventory is the system which updated the inventory as on a regular basis

While on the other hand,  the weighted average cost method is the method in which the average cost is calculated after each every purchase is made

In the calculation below:

1. The weighted average cost of $30.90 come from

= (Total inventory cost) ÷ (Total quantity)

= ($180,000 + $1,674,000) ÷ (60,000 units)

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= (Total inventory cost) ÷ (Total quantity)

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= $31.60

6 0
3 years ago
How will trumps Muslim ban affect the economy?
il63 [147K]
Well if the muslims have any trade with us then that will most likely stop. most could be kicked out and that could start a riat. the economy would be bad but it will not be any worse than what he started with. he have been in the office for less than a week now and has already hit isis countless times. something obama never did. i would say trump's ban on muslims would cause a minor effect on the economy.
6 0
2 years ago
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A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
Maurinko [17]

Answer:

a. appreciation of the U.S. dollar and depreciation of the foreign currency.

Explanation:

When the supply of us dollars fall, demand for US dollars would be greeter than the supply, the value of the US dollar would rise.

I hope my answer helps you

8 0
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