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lana [24]
2 years ago
13

Brickhouse is expected to pay a dividend of $3.65 and $2.66 over the next two years, respectively. After that, the company is ex

pected to increase its annual dividend at 3.3 percent. What is the stock price today if the required return is 12.3 percent
Business
1 answer:
vekshin12 years ago
8 0

Answer:

The stock price today is $ 29.56

Explanation:

Dividend for year 1, d₁ = $ 3.65

Dividend for year 2, d₂ = $ 2.66

Required rate = 12.3% = 0.123

Growth rate = 3.3% = 0.033

Value after year 2= (d₂ × Growth rate) ÷ (Required rate - Growth rate)

= (2.66 × 1.033) ÷ (0.123 - 0.033)

=30.5308889

Hence current price = Future dividend and value × Present value of discounting factor(rate%,time period)

= (3.65÷1.123) + (2.66÷1.123^2 ) + (30.5308889 ÷1.123^2 )

=$29.56

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[30 PTS + BRAINLIEST]
saw5 [17]

Answer:

C

Explanation:

A farmer would want to look at the economic status of the US because his goal is to sell as much wheat as possible and make the most profit. If he pays no attention to the economy and there's a recession but he still sells his wheat at the normal price, people whose stocks are going down and who are losing money will be unable to, and unwilling to, pay the price. Thus, the farmer must inspect the changing economic statuses of the US to determine the best and most effective way to market out his wheat to the public.

Changes in US racial patterns have no impact on the marketing of the farmer's wheat, so A is incorrect.

The number of births per year is also irrelevant, as is the general population growth numbers because these do not affect the way the farmer will market his crops, so B and D are incorrect.

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3 years ago
Read 2 more answers
In 2012, Teller Company sold 3,000 units at $300 each. Variable expenses were $210per unit, and fixed expenses were $120,000. Th
katrin [286]

Answer:

Teller's break-even point in sales dollars for 2012 is $400,000

Explanation:

The formula to compute the break even point in dollars is shown below:

Break even point (in dollars) = (Fixed expenses) ÷ (contribution ratio)

where,

Fixed expense is $120,000

And, the contribution ratio equals to

= (Contribution per unit)  ÷ (sales per unit) × 100

where,

Contribution is = Selling price - variable cost per unit

                        = $300 - $210

                        = $90 per unit

Now put the values to the above formula

So, the ratio would be

= ($90 per unit) ÷ ($300 per unit) × 100

= 30%

Now put the values to the above formula

So, the value would be

= $120,000 ÷ 30%

= $400,000

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3 years ago
What does it mean to be intelligent?
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Answer:

Intelligence has been defined in many ways: the capacity for logic, understanding, self-awareness, learning, emotional knowledge, reasoning, planning, creativity, critical thinking, and problem-solving.

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2 years ago
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Customer social style refers to the method customers use when interacting.

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A person who purchases goods or services from a shop, eatery, or other retailer is referred to as a customer.

A customer is any person or organization that makes a purchase from another firm. Customers are essential to businesses because they provide revenue; without them, they could not run.

No matter what industry you are in or what kinds of goods and services you provide, your clients are the most important component of your organization. Without the customer, there are no sales. As a result, they are essential in developing your marketing strategy and messaging.

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  • Due to the fact that production equipment is more expensive than standard office supplies or monthly expenses, financing is sometimes required to purchase capital assets.
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