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Y_Kistochka [10]
3 years ago
15

The price of a stock is:_______.a) the future value of all expected future dividends, discounted at the dividend growth rate. b)

the present value of all expected future dividends, discounted at the dividend growth rate. c) the future value of all expected future dividends, discounted at the investors required return. d) the present value of all expected future dividends, discounted at the investors required return.
Business
1 answer:
goldfiish [28.3K]3 years ago
5 0

Answer:

The answer is D.

Explanation:

The price of a stock is also known as price of equity. This is the price the equity of a company is presently worth. The price the potential investors will be able to purchase it. One of the ways of calculating price of a stock is the Dividend Discount Model which can be calculated by:

Ke = (D1÷Po) - g

Ke is the Cost of equity(i.e the required rate of return for investors)

D1 is the next year dividend payments

Po is the price of the stock

g is the expected dividend growth rate

To get Po, we can rewrite the formula as:

Po = D1÷Ke - g÷Ke

We can see now that the expected future dividends will be discounted at the ''Ke'' which is the investors'required rate of return

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Apple anticipates it will sell 100,000 units in the coming year. It is considering investing in a new machine that will increase
Vilka [71]

Incomplete question. However, it would be inferred you want to know the requirements to calculate net income.

<u><em>Explanation</em></u>:

Remember, net income is total revenue minus total cost. Since Apple anticipates selling 100,000 units, if we assume the fixed cost to be $2,400 and the variable cost $34, and selling price unit is $150.

  • Total cost= 2400+ (34*100,000)= 3,400,000
  • Total Revenue= 150*100,000= $15,000,000
  • Net income= 15,000,000-3,400,000= $11,600,000

The Net income is therefore $11,600,000.

7 0
4 years ago
CSU Co. just paid a dividend of $1.4 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent
boyakko [2]

Answer:

$16.93

Explanation:

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$1.4(1.04) / 0.126 - 0.04 = $16.93

8 0
3 years ago
The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nish
ollegr [7]

Answer: commitment

Explanation:

The Chief Executive Officer of Japan Airlines, who was Haruka Nishimatsu, was an example of a strategic leader who had a high performance.

The The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu commitment to the company.

4 0
3 years ago
Estimate the liquid density (g/cm3) of propane at 298 K and 10 bar. Compare the price per kilogram of propane to the price of re
Deffense [45]

Answer:

Density of propane = 17.8 g/L

Propane is more priced than gasoline

Explanation:

Given:

Temperature, T = 298 K

Pressure, P = 10 bar = 0.987 × 10 = 9.87 atm

now,

Molar mass of propane, M = 44.1 g/mol

From ideal gas law

⇒ PV = nRT

here,

n is the number of moles

R is the ideal gas constant = 0.0821 L.atm/mol.K

also,

Density, D = \frac{\textup{Mass}}{\textup{Volume(V)}}

or

V = \frac{\textup{Mass}}{\textup{D}}

and,

nM = mass

thus,

V = \frac{\textup{nM}}{\textup{D}}

substituting in the ideal gas relation

we have

P = \frac{\textup{DRT}}{\textup{M}}

or

D = \frac{\textup{PM}}{\textup{RT}}

or

D = \frac{9.87\times44.1}{0.0821\times298}

or

D = 17.8 g/L

Now,

1 gallon = 3.78 Liter

Therefore,

5 gallon = 5 × 3.78 Liter = 18.9 Liter

Thus,

mass of 5 gallon propane = Volume × Density

= 18.9 Liter × 17.8 g/L

= 336.42 g

or

= 0.336 kg

also it is given that Price of 5 gallon propane i.e 0.336 kg = $30

Therefore,

Price per kg = \frac{30}{0.336}

= $89.28

and,

Mass of 5 gallons i.e 18.9 Liter gasoline = Density × Volume

= 0.692 g/cm³ × 18.9 Liter

also,

1 L = 1000 cm³

thus,

= 0.692 g/cm³ × 18.9 × 1000 cm³

= 13078.8 g

or

= 13.078 kg

Therefore,

Price per kg of gasoline = \frac{\$30}{13.078}

= $2.29

hence, propane is more priced than gasoline

4 0
3 years ago
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