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Oduvanchick [21]
2 years ago
5

The U.S. Treasury has Kleine Toymakers is introducing a new line of robotic toys, which it expects to grow their earnings at a m

uch faster rate than normal over the next three years. After paying a dividend of $2.00 last year, it does not expect to pay a dividend for the next three years. After that Kleine plans to pay a dividend of $4.00 in year 4 and then increase the dividend at a rate of 10 percent in years 5 and 6. What is the present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent

Business
1 answer:
ivanzaharov [21]2 years ago
3 0

Answer:

The present  value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57

Explanation:

Solution:

Given that

The present value =∑ ⁿ t=1 cf/ (1 +r)t

where cf= cash flow

r =the required rate of return

t = the number of years

Now

The present value will be:

cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6

Hence,

cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years

Note: Kindly find an attached document of the part of the solution to this given question

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Answer:

The correct answer is: firms are unlikely to undertake investment.

Explanation:

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The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.

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3 years ago
A company that manufactures laser printers for computers has monthly fixed costs of $177,000 and variable costs of $650 per unit
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Answer:

295 units

Explanation:

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6 0
3 years ago
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AlekseyPX

Answer:

Exploratory

Explanation:

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In this scenario Reginald should call the striking workers and try to come to an equitable solution for the business and workers where there will be a win-win.

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