1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Papessa [141]
3 years ago
6

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.3

1 a share. The following dividends will be $.36, $.51, and $.81 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.5 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 10 percent
Business
1 answer:
a_sh-v [17]3 years ago
7 0

Answer:

P0 = $9.0767092  rounded off to $9.08

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

  • D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on
  • g is the constant growth rate in dividends
  • r is the discount rate or required rate of return

P0 = 0.31 / (1+0.1)  +  0.36 * / (1+0.1)^2  + 0.51 / (1+0.1)^3  +  0.81 / (1+0.1)^4  +

[(0.81 * (1+0.025) / (0.1 - 0.025)) / (1+0.1)^4]

P0 = $9.0767092  rounded off to $9.08

You might be interested in
Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it dec
Mumz [18]

Answer:

B. Strategic alliance

Explanation:

Strategic alliance is the agreement between two or more players (companies) to share resources or knowledge in such a way that it benefits all parties involved.

It is an agreement for cooperation among two or more independent firms to work together to achieve a common goal which is usually profit making. The example asked in the question is a form of strategic outsourcing relationship where the Soccer to the masses shared their products with the Japanese company in exchange for the Japanese company offering manufacturing and wilder distribution of the products.

All parties involved hopes for a synergy where everyone benefits more from the alliance rather than if they stood alone.

6 0
4 years ago
Read 2 more answers
Victoria is a marketing manager. A large part of her role is trying to assess what customers want and building long-term relatio
Nataly [62]

Answer:

trends, fashions, and tastes can change quickly.

Explanation:

Based on the information provided within the question it can be said that in a job role like the one that Victoria is in, the biggest complication is that trends, fashions, and tastes can change quickly. Due to the large impact that celebrities have on the world, one comment or action can immediately spark new trends and fashion senses around the world. This makes trying to predict the wants of customers very hard.

7 0
3 years ago
Select the correct answer.
Vanyuwa [196]
Answer:a is the answer:)
6 0
3 years ago
A numerical measure of your creditworthiness is your credit ___.
nydimaria [60]
The answer is C. Score
6 0
3 years ago
If the price level increases in the United States relative to foreign countries, then American consumers will purchase more fore
baherus [9]

Answer:

The correct answer is (C) the foreign purchases effect.

Explanation:

As a result of a negative situation for the internal economy, where the price of goods and services increases as a result of economic phenomena, people and companies tend to resort to the process of purchasing abroad, in order to meet their needs with A minimum amount of money.

5 0
3 years ago
Other questions:
  • Ideally, management should compare its budget to ________ performance every month in order to determine if the company is perfor
    15·1 answer
  • The purpose of a PERT network is: to monitor the quality of a product for compliance with ISO 9000 standards. to monitor the pro
    6·1 answer
  • Williams Inc. is expected to pay a $5 dividend next year and that dividend is expected to grow at 2.5% every year thereafter. If
    11·1 answer
  • A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%.
    6·1 answer
  • Indigo Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
    5·1 answer
  • Is anyone good at introduction to business?
    12·1 answer
  • Crane Advertising Company's trial balance at December 31 shows Supplies $8,000 and Supplies Expense $0. On December 31, there ar
    11·1 answer
  • Clara is the chief operating officer of a cosmetics manufacturing company. She gets opportunities to attend the board meetings o
    13·1 answer
  • Columbia Products produced and sold 1,400 units of the company’s only product in March. You have collected the following infor
    13·1 answer
  • What are some of the benefits associated with market economies, and what is responsible for generating those benefits?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!