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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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FinnZ [79.3K]

Answer:

A strategy at the business unit or product line level that focuses on improving a firm's competitive position.

Explanation:

Business strategy can be defined as a tool used by organisations to achieve their objectives and goals. A business strategy outlines the various actions that should be carried out by an organisation inorder to attract more customers and gain a high rank among competitors in the market.

A good business strategy helps the employees to identify their various weakpoints, the areas that they are not putting enough efforts. This helps to increase productivity which would lead to the growth of the company.

6 0
3 years ago
EHealth Corporation has $1,000 par value bonds with 4 years to maturity. The bonds pay an 8% coupon rate with semi-annual coupon
Degger [83]

Answer:

Yield to Maturity(YTM) = 3.47%

Explanation:

<em>The yield to maturity is the required rate of return (discount rate) that would equate the price of the bond and cash outflow  expected from the bond.  The yield on the bond can be determined as follows using the formula below:  </em>

YTM = C + F-P/n) ÷ 1/2 (F+P)  

YTM-Yield to maturity-  

C- coupon  

F- Face Value  

P- Current Price  

DATA  

Coupon = coupon rate × Nominal value = 1,000 × 8%× 1/2=40(note we divide by 2 because interest is paid semi-annually)

n= 4×2 = 8 (note there 2 half months in a year)

Face Value = 1000

YM-?, C-40, Face Value - 1,000, P-103.75/100×   1000 = 1037.5

YM = (40 + (1000-1037)/8) ÷ ( 1/2× (1000 + 1037.5  ) )  =0.0347

YM = 0.0347 × 100 = 3.47%  

Yield to Maturity = 3.47%

5 0
3 years ago
Productive resources are _____.
igomit [66]

factors that are used to make goods and services letter a

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​Analysts who follow Howe Industries recently noted that, relative to the previous year, the company's net cash provided from op
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Answer:

Option B ​The company made large investments in fixed assets.

Explanation:

The reason is that the reaminder of the options talk about the increase of the cash not a decrease in cash amount. If the company cuts dividend then it is retaining cash, if the company is raising finance then it is increasing cash or if the company is selling its division or assets then it is raising cash.

These things constitutes to increase in cash flow.

The decrease is cash occurs when the company invests (cash outflow). So the company is making cash outflows which means cash level will decrease.

4 0
3 years ago
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No, because Rule 8 applies, it is valid and constitutional, and it permits leaders to plead whatever relief they seek without the court's permission.

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6 0
1 year ago
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