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
grin007 [14]
2 years ago
5

Johnson Enterprises intends to make a dividend payment of $3.25 per share next year. After this dividend payment, the firm is co

mmited to raise its dividend by 5.1 percent per year, forever. Assuming you require a return of 15 percent on this investment, how much would you be willing to pay for this stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
vladimir1956 [14]2 years ago
6 0

Answer:

I would be willing to pay $ 32.83  for each share of Johnson Enterprises

Explanation:

The price per share= next year dividend/required rate of return-growth rate

next year dividend is $3.25

required rate of return is 15%

dividend growth rate in perpetuity is 5.1%

share price=$3.25/(15%-5.1%)

share price =$3.25/9.9%

share price=$3.25/0.099

share price=$ 32.83  

The share can be sold today for $ 32.83  ,which is the present value of dividends payable in perpetuity(forever)

You might be interested in
The majority of products that we purchase in America are produced where?
const2013 [10]

The answer is: by cheap foreign labor

Currently, most of the corporations that operates in america manufacture their products in countries such as China, india, indonesia, phillipines, or Eastern European countries.

People who live in those countries typically have lower standard of living. Because of this, they can agree in receiving salary that are considerably lower compared to the minimum wage in united states.

5 0
2 years ago
Read 2 more answers
Help!!
11Alexandr11 [23.1K]

Answer:

-Checking accounts almost never generate interest.

-It's much easier to spend money from a checking account.

have a nice day!

4 0
3 years ago
Shondra's family s monthly net income is $6.654. The family's budget is shown in the circle graph below. The famiy decides to
Murrr4er [49]

Answer:

If the family decreases the clothing budget by 3 percent, what amount will it have to spend on clothing? Round to the nearest dollar.

B.$466

Explanation:

took test on edg

8 0
3 years ago
Read 2 more answers
1. Read the following scenario and answer the question in 5-10 sentences. You are an expert in the field of advanced laser techn
Greeley [361]

The possible management structures and key terms of any operating agreement that must be considered to form an LLC are related to responsibility sharing, as an LLC is a type of entity owned by its partners.

Some features of the LLC are:

  • Less formality.
  • Tax savings.
  • Flexible management.
  • Simple organizational structure.

Therefore, the LLC is a single hybrid entity, more streamlined than a corporation, with the advantage that this proprietorship has limited liability protection.

Management is also more flexible, with decision-making being possible to be shared among its members, regardless of hierarchy.

It is also important to highlight the taxes, as in an LLC the taxation is simpler, with the losses and gains being reported in the tax returns, which helps to offset the income.

So this is a more streamlined and protected form of partnership that can be managed by a group of members more securely than a corporation.

It has less formal requirements to exist, and in case of bankruptcy or debt, there is greater protection for each member's personal property, as in an LLC the debts and obligations cannot be greater than the initial capital invested in the company.

Learn more here:

brainly.com/question/18567855

3 0
2 years ago
A cable TV company redesigned jobs so that one employee interacts directly with customers, connects and disconnects their cable
ira [324]

Answer:

a. increasing job enrichment by establishing client relationships

Explanation:

When we consider the above scenario, the company is aiming for job enrichment by providing their employees with more responsibility and creative freedom while also allowing them the ability to interact with their customers and form meaningful relationship.

4 0
3 years ago
Other questions:
  • If two individuals are licensed in the same line with two different companies join together to sell a policy, the commission can
    15·1 answer
  • assume that you provide your services in a company as its HR representative you must create the code of conduct manual for the c
    7·1 answer
  • A product found in homes built before 1978 is harmful to children. It can lead to birth defects and is generally hazardous. It s
    10·1 answer
  • A high-production operation was studied during an 80-hr period. During that time, a total of seven equipment breakdowns occurred
    11·1 answer
  • What account earns the most interest
    14·1 answer
  • When an incident occurs and relevant agencies or departments are dispatched to the scene, the lead agency assumes Incident Comma
    8·2 answers
  • Kearney Inc. has a factory with the following characteristics: direct labor of $82056, direct materials of $52432 fixed overhead
    11·1 answer
  • Which sentence from the contract shown below refers to consideration?
    10·1 answer
  • How are prices determined in a free market economy​
    13·1 answer
  • On July 15, 2021, M.W. Morgan Distribution sold land for $41.0 million that it had purchased in 2016 for $26.0 million.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!