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NARA [144]
3 years ago
8

TP Inc. is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plo

w back its earnings to fuel growth. The company will then pay a $5 per share dividend at the end of year 10 and thereafter it will increase the dividends by 2% per year forever. If the required rate of return on this stock is 8%, what is the current (today’s) share price?
Business
1 answer:
tatiyna3 years ago
8 0

Answer:

$41.69.

Explanation:

P9 = Next dividend / Required rate - Growth rate

P9 = $5 / 8% - 2%

P9 = $5 / 6%

P9 = $5 / 0.06

P9 = $83.33

So, the stock price for 9th year is $83.33

Current stock price = P9 / (1 + Required rate of return)

Current stock price = $83.33 / (1+0.08)^9

Current stock price = $83.33 / (1.08)^9

Current stock price = $83.33 / 1.9990046271

Current stock price = 41.68574643115692

Current stock price = $41.69

Therefore, the current stock price is $41.69.

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Prof. Business will have $1,600,000 saved up by retirement at age 65. The retired professor expects to live 20 more years after
alexdok [17]

Answer:

heyy i hope ur having a great day so far hope my answer helps :)

Explanation:

<h2><em>$136348.618</em></h2><h2><em></em></h2><h3><em>Present value (PV) =$1,600,000 </em></h3><h3><em> </em></h3><h3><em>Number of year(n) = 20 </em></h3><h3><em> </em></h3><h3><em>Rate(r) = 6.5% = 6.5 / 100 = 0.065 </em></h3><h3><em> </em></h3><h3><em>Payment monthly (PMT) = ? </em></h3><h3><em> </em></h3><h3><em>Calculation:</em></h3><h3><em> in the picture  </em></h3><h2><em> </em></h2><h2><em> </em></h2><h2><em>So, Payment per month = $136348.618</em></h2>

5 0
3 years ago
A firm underwriting of a municipal bond issue usually has a number of different broker-dealers involved. Those who earn the tota
Ymorist [56]

Answer:

Selling syndicate members

Explanation:

Selling syndicate members is a term used in business or finance to describes part of a broker-dealers of a municipal bond issue. They are charged with the responsibilities of selling the bonds allotted to them.

From the sales of each bond, the total takedown, including the additional takedown is earned.

Hence, in this situation, the correct answer is Selling Syndicate Members

5 0
3 years ago
The labor force equals the number of people A) employed. B) unemployed. C) employed plus unemployed. D) in the working-age popul
GREYUIT [131]

Answer:

The answer is C.

Explanation:

Unemployment is a situation in which those who are willing and able to work can not get the job i.e those who are actively searching for a job can't get one.

While employment is when those that are willing and able to work are employed.

Therefore, labour force is the addition of employed people and unemployed people.

5 0
4 years ago
1. Mr. Knox is planning to deposit $100 per year for the next 18 years for his grandson’s birthday. If the account earns an annu
aleksandr82 [10.1K]

Answer:

a. $2953.9

b. $2813.24

Explanation:

To calculate the future value of an annuity paid at the beginning of the period, you have:

VF = A\left[\frac{(1+i)^{n+1} - (1+i)}{i}\right] = 100\left[\frac{(1.05)^{19} - (1.05)}{0.05}\right] = 2953.9

To calculate the future value of an annuity paid at the end of the period, you have:

VF = A\left[\frac{(1+i)^{n} - 1)}{i}\right] = 100\left[\frac{(1.05)^{18} - 1)}{0.05}\right] = 2813.24

Mr. Knox will have $2953.9 at the end of the 18 years, if he pays $100 at the beginning of each year. On teh other hand, Mr Knox will have $2813.24 at the end of the 18 years, if he pays $100 at the end of each year.

8 0
4 years ago
A research study showed that adolescents who watched more than 4 hours of TV per day were more than five times as likely to star
Bogdan [553]

Answer:

peer pressure

Explanation:

when your friend is convincing u in doing some thing wrong

3 0
3 years ago
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