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Natali5045456 [20]
3 years ago
11

You have decided that you would like to own some shares of GH Corp. but need an expected 12% rate of return to compensate for th

e perceived risk of such ownership. What is the maximum you are willing to spend per share to buy GH stock if the company pays a constant $3.50 annual dividend per share?
Business
1 answer:
oee [108]3 years ago
3 0

Answer:

Share price = 29.16

Explanation:

Given:

Dividend paid = $3.50

Required rate  of return = 12% = 12/100 = 0.12

Growth rate  = 0%

Find:

Share price  = ?

Computation:

⇒ Share price  = Dividend paid / [Required rate  of return - Growth rate ]

⇒ Share price = $3.5/(0.12-0)

⇒ Share price = 29.16

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If an organizational manual exists, a description of the division of work and the position shown on the organization chart will
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If an organizational manual exists, a description of the division of work and the position shown on the organization chart will be given in the manual or will be located on the company's intranet.

A) True
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4 years ago
Denti-Way Systems, a manufacturer of dental appliances, invented and patented a new x-ray machine that radically reduced mainten
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Answer:

The correct answer is letter "C": international.

Explanation:

International business strategies are the systems used to plan and implement a series of actions driven to compete and place a company in the international market. The process implies analyzing and evaluating the target market, implementing the organization's operations abroad using innovative technology and strategies, and monitoring the results. At this stage, firms tend not to be worried about production costs until the entry of competitors.

7 0
3 years ago
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments wi
polet [3.4K]

Answer:

Present value= $3,642,651.54

Explanation:

Giving the following information:

You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.

First, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment= 530,000

i= 0.04 + 0.10= 0.14

n= 25

FV= {530,000*[(1.14^25)-1]}/0.14

FV= 96,391,538.43

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 96,391,538.43/ (1.14^25)

PV= $3,642,651.54

7 0
3 years ago
Amelie decides to offer one of her subordinates, Jason, his pick of tasks on a new project in exchange for his vocal support of
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The Final answer is c yes
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3 years ago
Which one of the following statements on the remuneration of the factors of production is true?
nordsb [41]

Answer: The remuneration for natural resources is rent, as natural resources consist of all gifts of nature

Explanation:

Factors of production consists of the resources that are used to production to take place. They include land, labor, capital and the enterprise.

The remuneration for natural resources is rent, as natural resources consist of all gifts of nature.

The remuneration for labor is wages and salaries. The remuneration for capital is interest while the remuneration for entrepreneur is profit.

6 0
3 years ago
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