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jek_recluse [69]
3 years ago
15

What is the price of a stock today if it pays a Dividend TODAY of $2. Its growth rate is 5%, and its market return is 12%?

Business
1 answer:
Nutka1998 [239]3 years ago
8 0

Answer:

$30.00  

Explanation:

The price of the stock can be derived from the stock theoretical price formula given and explained below:

stock price=expected dividend/(market return-growth rate)

expected dividend=dividend paid today*(1+growth rate)

expected dividend=$2*(1+5%)

expected dividend=$2.10

market rate of return=12%

growth rate=5%

stock price=$2.10/(12%-5%)

stock price=$2.10/7%

stock price=$30.00  

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8 0
4 years ago
Per Chevron’s 3Q 2013 filing, what was the percentage change in the cost of purchased oil products when comparing nine months en
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Answer:

Per Chevron 3Q 2013 Filling:

The percentage change in the cost of purchased oil products nine months to September 30, 2013 when compared to nine months in 2012 was:

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Explanation:

a) Data and Calculations:

Cost of purchased oil products:

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2012       $33,982,000,000

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b) The implication is that Chevron's cost of purchased oil products in third quarter of 2013 increased by 2.47% when compared with the same period in 2012.  This percentage change is calculated by subtracting the Q3 2012 cost of purchased oil products from the Q3 2013 cost of purchased oil products and then dividing the difference by the Q3 2012, and multiplying by 100.  The change could be caused by increases in the price of oil products or other variables.

5 0
3 years ago
gary and felix are partners of a general partnership. gary does two-thirds of the partnership work, while felix does one-third o
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In a partnership, parties who are referred to as business partners agree to work together to further their shared objectives. Individuals, companies, interest-based organisations, schools, governments, or combinations of these may be the partners in a partnership.

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Learn more about partnership here:

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5 0
1 year ago
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the answwer is ( 67 % )

5 0
3 years ago
Read 2 more answers
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Answer:

Correct options are: (D), (E), (F).

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