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Liula [17]
3 years ago
10

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.40 a share. The company has promised to

maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 15.70 percent on your equity investments?
Business
1 answer:
Blizzard [7]3 years ago
5 0

Answer:

The maximum amount that should be paid for one share of this stock today is $15.29

Explanation:

The price of a stock which pays a constant dividend forever can be calculated using the zero dividend growth model of the Dividend Discount Model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends from the stock discounted using the required rate of return on stock.

The formula for price under zero growth model of DDM is,

Price today (P0) = Dividend / required rate of return

P0 = 2.4 / 0.1570

P0 = $15.286 rounded off to $15.29

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3 years ago
I NEED THIS ASAP
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If you are looking for an out-of-print copy of a book, you should check a <u>Digital Library</u> .

(I just answered the question on Edgenuity myself)

7 0
3 years ago
Helen, who is single, is considering purchasing a residence that will provide an $18,000 tax deduction for property taxes and mo
GenaCL600 [577]

Answer:

amount of tax saving is $4320

Explanation:

given data

tax deduction = $18000

marginal tax rate = 24%

effective tax rate = 20%

to find out

amount of tax saving

solution

we know tax saving formula that is

tax saving = tax deduction × marginal tax  ........................1

so now put here all value in equation 1

tax saving = tax deduction × marginal tax

tax saving = 18000 × 24%

tax saving = 18000 × 0.24

tax saving = 4320

so amount of tax saving is $4320

4 0
3 years ago
One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department
cupoosta [38]

Answer:

procedure

Explanation:

According to my research on different human resource responsibilities, I can say that based on the information provided within the question there is a procedure that Henry must follow. Like described in the question a Procedure is a set of step by step instructions that must be followed accordingly in order to achieve a certain goal.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
What term refers to people who are trendy and fashionable in order to impress others and are often impulse buyers?
oee [108]

Answer: Strivers

Explanation:

The term that refers to people who are trendy and fashionable in order to impress others and are often impulse buyers is Strivers.

It should be noted that Strivers are usually consumers that are from low income families but they so much believe in style and fashion and really wants to impress and emulate celebrities or high income earners who use lastest trends or fashion.

5 0
3 years ago
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