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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

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Baron Corporation has two sequential processing​ departments: Assembly and Shaping. The Shaping Department reports the following
Oksana_A [137]

Answer:

Concerteza é a letra "B"

Explanation:

Espero que esteja errado, mas espero ter ajudado!

8 0
3 years ago
You are considering a stock that is expected to pay dividends during the next five years of $0.50, $0,52, $0,54, $0,56 and $0.58
nikklg [1K]

Answer:

9.7%

Explanation:

The rate of return can be determined using a financial calculator

Cash flow in year 0 = -65

Cash flow in year 1 = $0.50

Cash flow in year 2 = $0.52

Cash flow in year 3 = $0.54

Cash flow in year 4 = $0.56

Cash flow in year 5 = $0.58 + $100

Rate of return = 9.7%

To find the rate of return using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

4 0
3 years ago
If expected inflation rises, the long-run Phillips curve will
noname [10]
Even though the Phillips curve is an empirical model has historically shown that the rate of unemployment and the rate inflation is inversely proportional, this is only observed in the short-run. In a graph, this is shown as non-linear.

The Long-run Phillips curve, on the other hand, is linear. This means that there's no constant trade-off with regard to inflation & unemployment.
4 0
3 years ago
You invest $650 in security A with a beta of 1.2 and $450 in security B with a beta of 0.7. The beta of this portfolio is ______
e-lub [12.9K]

Answer:

Beta of this portfolio = 0.9953

Explanation:

Given:

Investment in security A = $650 beta 1.2

Investment in security B = $450 beta 0.7

Find:

Beta of this portfolio

Computation:

Beta of this portfolio = [650 / (650+450)]1.2 + [450 / (650+450)]0.7

Beta of this portfolio = [650 / (1,100)]1.2 + [450 / (1,100)]0.7

Beta of this portfolio = 0.7090 + 0.2863

Beta of this portfolio = 0.9953

6 0
3 years ago
____ manufacturing philosophy emphasizes quality and zero defects. chinese zero-based traditional lean
Vesnalui [34]
Just in Time <span>manufacturing philosophy emphasizes quality and zero defects.
Companies who held this pilosophy usually only made their products after they receive an accurate number of orders.
By doing this, they will cut out their inventories and eliminate unnecessary expenses for their production cost. Famous company who implement this philosophy: Toyota.</span>
7 0
3 years ago
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