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hammer [34]
3 years ago
8

announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.27 a s

hare. The following dividends will be $0.32, $0.47, and $0.77 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.3 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 12 percent
Business
1 answer:
alukav5142 [94]3 years ago
6 0

Answer:

$6.48

Explanation:

div 1 = $0.27

div 2 = $0.32

div 3 = $0.47

div 4 = $0.77

div 5 = $0.77 + 2.3%

required rate of return = 12%

first we must determine the stock price in 4 years = ($0.77 + 1.023) / (12% - 2.3%) = $8.12

now we must determine the stock price including all dividends up to year 4:

stock price = $0.27/1.12 + $0.32/1.12² + $0.47/1.12³ + $0.77/1.12⁴ + $8.12/1.12⁴ = $0.24 + $0.26 + $0.33 + $0.49 + $5.16 = $6.48

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Answer:

The last one

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A SMART goal always start with 'I will', this one starts with 'I want'

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3 years ago
Contour Autos competes against the global leaders in the automobile industry by developing and selling acceptable quality vehicl
alisha [4.7K]

Answer:

c. cost-leadership strategy

Explanation:

Contour Autos tend to decrease the price of the product and that the quality served of the product is acceptable and not degraded. In this manner as against the normal industry the company supplies same quality goods at lower prices.

This decreases the cost for consumers and therefore, it is termed as Cost-Leadership strategy.

The Company tends to lead in the market through lower cost of goods supplied with the same quality.

5 0
3 years ago
Xavier and alex plan on retiring 27 years from today. at that time, they plan to have saved the same amount. javier is depositin
hammer [34]

The amount by which Alex's deposit amount vary from Javier's if Alex also makes a deposit today, but earns an annual interest rate of 6.2 percent is $3381.39.

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

We use the formula:

A=P(1+r/100)^n

where

  • A=future value
  • P=present value
  • r=rate of interest
  • n=time period.

Hence future value Javier will be:

=$15000*(1.052)^27

=$58,954.40

For Alex:

58,954.40=P*(1.062)^27

P=58,954.40/(1.062)^27

=$11618.61

Hence difference will be:

=15000 - 11618.61

= $3381.39

Learn more about interest on:

brainly.com/question/2294792

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3 0
1 year ago
On May 1, 2020, Vaughn Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contr
Alchen [17]

Answer:

May 1, 2020 - No Entry

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IFRS 15 requires an entity to recognise revenue <em>when</em> entity transfers the goods or services to the customer.

Transfer of the mower happens on May 31, 2020, this is the date at which Revenue is recognised.

The cash is also paid on May 15, 2020, according the <em>accruals concept</em>, no entry must be done on May 1,2020. Only when the payment occurs should there be a record in Vaughn books.

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3 years ago
A service animal can. A) cat. B) Snake C) Miniature horse D) Kangaroo true or false
Taya2010 [7]
False, because you can't really use those animals for a service.
5 0
3 years ago
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