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
mihalych1998 [28]
3 years ago
9

Charles Berkeley, Inc. just paid an annual dividend of $3.60 per share on its stock. The dividends are expected to grow at a con

stant rate of 4.5 percent per year, indefinitely. If investors require an 11 percent return on this stock, what will the price be in 12 years? Question 2 options: A. $91.71 B. $93.62 C. $95.75 D. $98.15 E. $102.57.
Business
1 answer:
8_murik_8 [283]3 years ago
5 0

Answer:

D. $98.15

Explanation:

Price of stock formula;

Price today(P0) = \frac{D0(1+g)}{r-g}

D0= Current dividend

g = growth rate

r = required return

Price = \frac{3.60(1.045)}{0.11 -0.045}

= 3.762 /0.065

Price = 57.877

Price in 12 years (P12) = P0(1+g)

P12 = 57.877 *1.045^{12}

P12 =$98.152

Therefore, price of stock in 12 years will be $98.15

You might be interested in
Enclosed with the bank statement received by Matthew Company at August 31 was an NSF check for $2,012. No entry has yet been mad
mrs_skeptik [129]

Answer:

b. Deducted from the balance per the depositor's records

Explanation:

As while preparing the bank reconciliation statements, there are the items that are added and deducted  in the company book accounts and the bank book accounts

So in the given case, since the NSF check should be deducted from the depositor records or the company records as this derives that the check is returned by the bank but the same is not recorded in the company books so to balance the bank reconciliation statement we deduct it from the company books

3 0
2 years ago
You and your friends have decided to build a skateboard ramp behind your house. You have already purchased $500 in materials and
Rufina [12.5K]

Answer:

Hand saw is cheaper.

Explanation:

Given:

Material cost = $500

Electric saw cost rent per hour = $20

Building hour from electric saw = 6 hour

Building hour from hand saw = 15 hour

Time off pay from job = $8/hour

Computation of total cost from Electric saw :

Total cost from Electric saw = Material cost + Renting cost of electric saw + Time of from job

Total cost from Electric saw = $500 + (6 × $20) + (6 × $8)

Total cost from Electric saw = $500 + $120 + $48

Total cost from Electric saw = $668

Computation of total cost from hand saw :

Total cost from hand saw = Material cost + Time of from job

Total cost from hand saw = $500 + (15 × $8)

Total cost from hand saw = $500 + $120

Total cost from hand saw = $620

Hand saw is cheaper.

5 0
2 years ago
During 2017, Ecuyer Industries reported cash provided by operations of $794,000, cash used in investing of $686,000, and cash us
marshall27 [118]

Answer:

$518,000

Explanation:

Data provided in the question:

cash provided by operations = $794,000

Cash used in investing = $686,000

Cash used in financing = $190,000

cash spent for fixed assets during the period = $276,000

Average current liabilities = $650,000

Average total liabilities = $1,716,000

Now,

Ecuyer's free cash flow

                Particulars                                                             Amount

          Cash provided by operations                                  $794,000

Less:  Cash spent for fixed assets during the period       $276,000

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

Ecuyer's free cash flow                                                       $518,000

5 0
3 years ago
State and explain the importance of marketing in small business ​
bulgar [2K]

<h3>Please mark me as Brainliest .....</h3>

7 0
3 years ago
The more precisely defined the target market is, the _____ the numbers are to estimate.
bija089 [108]
The answer is a I believe I'm not really sure
4 0
3 years ago
Read 2 more answers
Other questions:
  • If susan sharpe, vice president of marketing, is at the stage in her market research where she is gathering information about th
    13·1 answer
  • Part 5: Joint Product Costs (10 points) Iaci Company makes two products from a common input. Joint processing costs up to the sp
    15·1 answer
  • Under the Precedence Diagramming Method, the situation which occurs when two activities can start at different times, have diffe
    10·2 answers
  • Janitor Supply produces an industrial cleaning powder that requires 48 grams of material at $0.10 per gram and 0.15 direct labor
    11·1 answer
  • A customer came to your department with an urgent question. You promised her that you wouldcollect information about her questio
    13·1 answer
  • A loan is amortized by level payments made on every February 1. The borrower notices that the interest paid in the February 1, 2
    11·1 answer
  • JL.62 Durabright wants to establish kanbans to feed a newly installed work cell for its line of LED traffic signal lamps. The da
    6·1 answer
  • What can a cover letter explain that a résumé cannot?
    9·2 answers
  • Jeffrey Inc., an animation company, asks job applicants to fill out a form requesting information about any hereditary illness o
    8·1 answer
  • A registered representative has left one firm to join another. Sometime later, the former employer discovers that some informati
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!