All categories

3 years ago

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

You might be interested in

The accountant for Flagger Company prepared the following list of account balances from the company’s records for the year ended

Gre4nikov [31]

Answer:

Net operating income $15,000

Explanation:

Flagger Company

Income statement for the year ended , 31 December

Fee earned

165,000

Less : Operating expenses

Salaries and wages 40,000

Rent expense. 51,000

(91,000)

Gross profit.

74,000

Less: Selling expense.

(44,000)

Profit before interest and tax.

30,000

Less interest expense.

(18,000)

12,000

Add: Interest income.

3,000

Net operating income.

15,000

8 0

3 years ago

Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to litigate the issue but does not

Ray Of Light [21]

Answer: D) Tax Court

Explanation:

Tax court of United States is court that is made for hearing tax-related issue and problem and then judgment is made on the disputes.According to the question, Rowanda should appeal to U.S. tax court for her tax disputer with IRS so that appropriate decision can be made in legal way.

Other options are incorrect because the United state's court of Appeals, federal claim and district are not the place where tax related disputes are legally handled and heard.Thus, the correct option is option(D).

8 0

3 years ago

"A cleaning company uses $10 of chemicals, $40 of labor, and $5 of misc. expenses for each house it cleans. After some quality c

Rus_ich [418]

Answer:

multifactor productivity = 8.3%

Explanation:

given data

Total cost for chemicals = $10

Total cost of labor = $40

Total cost of misc = $5

use of chemical = 50%

solution

first we get here total initial cost that is

total initial cost = 10 + 40 + 5

total initial cost = $55

and

Increase in cost of chemical is = 10 + (0.5) × (10)

Increase in cost of chemical = 15

so Total increase in cost will be

Total increase in cost = $15 + $40 + $5

Total increase in cost = 60

increase in cost % = $\frac{initial\ cost}{incresed\ cost}$ × 100

increase in cost % = $\frac{55}{60}$ × 100

increase in cost % = 91.67 %

change in multifactor productivity is = 100% - 91.7%

multifactor productivity = 8.3%

3 0

3 years ago

Coca Cola’s failed introduction of New Coke was highly regarded as a failure of marketing research. The research that was conduc

olga2289 [7]

Answer:

The correct answer is c. Classical Conditioning

Explanation:

Classical conditioning (or Pavlovian conditioning) is one of the introductory subjects studied in the psychology career, and is one of the basic principles of learning.

Therefore, surely all psychologists and teachers have knowledge about their importance in associative learning or in the formation of pathologies such as phobias. There are few who do not know Ivan Pavlov and his experiments with dogs. For those who still don't know him, we explain his theory in detail below.

3 0

3 years ago

Tucker's Trucking is considering a project with a discounted payback period just equal to the project's life. The projections in

attashe74 [19]

Answer:

Total units will be 8845 units

So option (E) will be the correct option

Explanation:

We have given fixed cost = $81000

Operating cash flow = $16300

Let there are x units

We know that operating cash flow = Revenue - cost

So $$16300=27\times x-16\times x-81000$

$11x=97300$

x = 8845 units

So option (E) will be the correct option

6 0

3 years ago