1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
riadik2000 [5.3K]
2 years ago
10

The James River Co. pays an annual dividend of $1.50 per share on its common stock. This dividend amount has been constant for t

he past 15 years and is expected to remain constant. Given this, one share of James River Co. stock:
A. is valued as if the dividend paid is a perpetuity
B. has a market value equal to the present value of $1.50 paid one year from today
C. is basically worthless as it offers no growth potential
D. is valued with an assumed growth rate of 3%
E. has a market value of $15.00.
Business
1 answer:
Svet_ta [14]2 years ago
7 0
I think the answer is B.
Hope this help
You might be interested in
Farmco just paid its annual dividend of $.32 per share. The dividends are expected to grow at 25 percent annually for the next 4
vitfil [10]

Answer:

$5.73(Approx).

Explanation:

Given:

= 0.32

Growth rate = 25% = 0.25

Number of year = 4

Growth rate after 4 year = 3% = 0.03

Required rate of return = 15% = 0.15

Computation of divined in 4 year:

Annual\ dividend\ paid(1+growth\ rate)^n\\\\0.32(1+0.25)^4\\\\0.32(1.25)^4\\\\0.32(2.44140625)\\\\0.78125

Price of stock after year 4 = [Divined in 4 year × (1 + new growth)] /[Required rate of return - Growth rate after 4 year ]

Price of stock after year 4 = [0.78125 × (1+0.03)] / [0.15 - 0.03]  

Price of stock after year 4 = [0.8046875] / [0.12]  

Price of stock after year 4 = $6.70572917

Present value = Future value / (1+r)^n

 Present value = $6.70572917 / (1.15)^4

 Present value = $6.70572917 / (1.16985856)

$5.73(Approx).

6 0
3 years ago
All of the following criteria serve as a valid basis for identifying potential projects in most organizations EXCEPT: ​
Slav-nsk [51]

Answer:

d. internal politics

Explanation:

Considering all the options given

Option a technological advance is a valid basis for identifying potential projects in most organizations as it may be the key driver for the profitability of a project. An investment in a technology that becomes or is obsolete would most likely result in a loss.

Option b environmental consideration is also a valid basis for identifying potential projects as a company's reputation may be jeopardized if a project is not environmentally friendly

Option c social need is also a valid consideration as the need of the consumer may determine the viability of a project.

Internal politics option d is is the only option that does not influence the viability of a project.

4 0
2 years ago
at land rover, voluntary discussion groups of 4 to 12 employees met weekly to identify cost savings, improve product quality, an
Katarina [22]

Explanation:

you would have 5000

i hope i help you

7 0
2 years ago
The additional dining space will occupy space next to Olaf’s that was recently rented to a tenant. By claiming the space for the
Illusion [34]

Answer:

$12,146

Explanation:

The computation of present value of this opportunity cost is shown below:-

Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage

= $1,000 × 30%

= $300

Project is for 4 Years

Total months = 4 × 12

= 48 Months

Interest Rate Per month = 9% ÷ 12

= 0.75%

As per the question the Rent is Received at the start of the month

So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))

= $300 × ( 1 + 39.486)

= $12,145.85

= $12,146

3 0
3 years ago
​________ is the basic ingredient of character that is exhibited when you achieve congruence among what you​ know, say, and​ do,
BabaBlast [244]

Answer: Integrity

Explanation: Integrity in Sales is valuable trait which is being consistently honest, trustworthy and dependable with everything you say or do.People especially Sales men and women who show integrity tend to pull others to them because they are honest, trustworthy and dependable.

You can always vouch on them to behave in credible ways at all times. They are so principled about their performance. They are the best kind of workforce you want in your team.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Pilcher Corp. manufactures tents in its two factories located at two states in Arkadas. It exports its goods to several of its n
    10·1 answer
  • It costs Orkid Company $17 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capa
    5·1 answer
  • Saul and Pepper have been friends since kindergarten. Both Saul and Pepper have good part-time jobs. Pepper deposits a portion o
    13·1 answer
  • A 65-year old widow that is in a low tax bracket and that has a low risk tolerance wishes to make an investment that will provid
    15·1 answer
  • Star Corp., a publicly traded, accrual-method C corp., incurred the following expenses in 2020 (all of which are ordinary and ne
    14·1 answer
  • When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the
    12·1 answer
  • If you want to target specific people in a country or city, what segmentation you will<br> use?
    12·1 answer
  • A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high scho
    11·1 answer
  • The terms of trade can take on any value Group of answer choices above the seller's opportunity cost. below the seller's opportu
    8·1 answer
  • In your opinion, do we need to use a structured decision making model to make decisions in business.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!