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Bad White [126]
3 years ago
7

Santa Klaus Toys just paid a dividend of $3.00 per share. The required return is 11.7 percent and the perpetual dividend growth

rate is 3.9 percent. What price should this stock sell for five years from today?
Business
1 answer:
givi [52]3 years ago
6 0

Answer:

P5=48.3860

Explanation:

Santa Klaus Toys

The Price of the stock 5 years from today will be :

P5=D6/(r-g)=

D0*(1+g)^6/(r-g)

Where

D0 =3

g =3.9%

r=11.7%

Hence:

P5=3*(1+3.9%)^6/(11.7%-3.9%)

P5=3*(1+0.039)^6/(0.117-0.039)

P5=3*(1.039)^6/(0.078)

P5=3.77410/0.078

P5=48.3860

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The law of Inertia is basicaly that if an object is in motion, it will stay in motion unless a force is stopping it. It affects them because the object (person) is in motion, but nothing is stopping/restraining them.
3 0
3 years ago
Read 2 more answers
Henry Hutchins is discontent with his job but believes that his supervisor is a good man who will do whatever is necessary to re
Natalija [7]

Answer: (A) Loyalty

Explanation:

 According to the given scenario, Henry hutchins is dissatisfied with his job but he believes to the supervisor of the company that he helps in reducing the stress and disappointment from the job.

The Henry repose to the given problem is refers as the loyalty as he shows faith to his supervisor and also shows the loyalty that he helps in improve the conditions of his job.

The loyalty is the term that shows the positive, reliable and the trust quality of the person that the one person devoted to other.

 Therefore, Option (A) is correct answer.

7 0
3 years ago
In which of the following cases is it most likely that an increase in the size of a tax will decrease tax revenue? Answers: A) T
DiKsa [7]

Answer:

The correct answer is option D.

Explanation:

An increase in the size of tax is likely to increase the tax revenue when the price elasticity of supply, as well as price elasticity of demand, are both large.  

The imposition of tax will cause an increase in the price of the product. If the price elasticity of demand is higher, an increase in the price will lead to a more than proportionate decrease in demand.  

At the same time, high price elasticity of supply means that when the tax is imposed the sellers will be able to reduce quantity more easily.  

So when less output is produced and demanded the tax revenue will also be lower.

6 0
3 years ago
McCallister's just purchased $16,500 worth of inventory. The terms of the sale were 1/15, net 45. What is the implicit interest?
Greeley [361]

The implicit interest based on the information given is $165.

<h3>How to calculate the interest?</h3>

It should be noted that the implicit interest is calculated as:

= Inventory worth × Discount rate

= $16500 × 1%

= $165

Therefore, the implicit interest based on the information given is $165.

Learn more about interest on:

brainly.com/question/24080432

#SPJ1

3 0
2 years ago
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BARSIC [14]

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Explanation:

Burrell would be wrong because the most leakage in federal assistance programs comes from the way people respond to financial incentives.

Some people who have received this assistance from the Federal government have decided that it would be better to keep receiving this assistance instead of working to actually get paid.

This has led to more people seeking assistance thereby increasing the number of people needing assistance and invariably increasing the cost of these federal assistance programs.

4 0
3 years ago
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