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Oliga [24]
4 years ago
15

1. The Jackson– Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow

at a constant rate of 6 percent per year indefinitely. If investors require a 12 percent return on the Jackson–Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?
Business
1 answer:
SSSSS [86.1K]4 years ago
4 0

Answer:

$28.27

$33.67

$67.74

Explanation:

The computation of current price, price be in three years and In 15 years is shown below:-

Stock current price = Next expected dividend ÷ (Required return - Growth rate)

= $1.60 × (1 + 6%) ÷ (12% - 6%)

= $1.60 × 1.06 ÷ 0.06

= $28.27

Stock price in three years = D4 ÷ (Required return - Growth rate)

= $1.60 × ((1 + 6%)^4) ÷ (12% - 6%)

= $1.60 × (1.06)^4) ÷ 0.06

= $1.60 × 1.26247696  ÷ 0.06

= 33.66605227

or

= $33.67

Stock price in 15 years = D16 ÷ (Required return - Growth rate)

= $1.60 × ((1 + 6%)^16) ÷ (12% - 6%)

= $1.60 × (1.06)^16) ÷ 0.06

= $1.60 × 2.540351685

÷ 0.06

= 67.74271159

or

= $67.74

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ivolga24 [154]

Answer: Finance, purchasing, accounting, suppying

Explanation:

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The following are activities of the retailer, although it might not be all followed by many retailers but depending on their ability and understanding

-Finance

-Purchasing

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3 0
3 years ago
In the obsolescing bargain situation, bargaining power of the host country government will be stronger when the MNC has made lar
patriot [66]

Answer:

True

Explanation:

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4 years ago
An example of a job that involves working mainly with receipts and bills is a(n):
igomit [66]
Answer: C. Book keeper
7 0
3 years ago
What serves as collateral in a repurchase agreement? multiple choice question. the security itself there is no collateral a bund
Mila [183]

The security itself serves as collateral in a repurchase agreement.

Option A is correct

What is Repurchase Agreement ?

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Reverse repurchase :

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7 0
1 year ago
Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing
Zarrin [17]

Answer:

Optimal mix

Reno = 615 units

Tahoe = 0 units

Explanation:

Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product with he highest contribution per unit of the scare resource

Product           Cont/unit     painting hr /unit   cont/hr   Ranking

Reno                $120                4                        30           Ist

Tahoe                $78               3                        26           2nd              

The company should use all of its limited 2,460 painting hours to produce the two products as follows:

Reno  

= 2460/4

= 615 units of Reno

<em>This is so as long as Billings Company can produce and sell as many units of Reno as it can produce.</em>

Optimal mix

Reno = 615 units

Tahoe = 0 units

4 0
4 years ago
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