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Degger [83]
2 years ago
14

Value a Constant Growth Stock Financial analysts forecast Best Buy Company (BBY) growth for the future to be 14.00 percent. Thei

r recent dividend was $1.19. What is the value of their stock when the required rate of return is 15.43 percent
Business
1 answer:
postnew [5]2 years ago
8 0

Answer:

$94.87

Explanation:

Value of stock = Dividend * (1 + Growth rate) / (Required rate - Growth rate)

Value of stock = $1.19 * (1 + 0.14) / (0.1543 - 0.14)

Value of stock = $1.19 * 1.14 / 0.0143

Value of stock = $1.3566 / 0.0143

Value of stock = 94.8671329

Value of stock = $94.87

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6. Why do American business owners try to avoid accepting Canadian coins?
fenix001 [56]

Answer:

because America coins and Canada coins is same

Explanation:

pls mark this

3 0
2 years ago
Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price assuming that the bond
kvv77 [185]

Answer:

Zero-cupon bond= $376,889.48

Explanation:

Giving the following formula:

Face value= $1,000,000

Mature= 10*2= 20 semesters

Market rate= 0.1/2= 0.05

<u>To calculate the price of the bond, we need to use the following formula:</u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000,000 / (1.05^20)]

Zero-cupon bond= $376,889.48

3 0
3 years ago
The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $430 million. It has liabilities of $8
SashulF [63]

Answer:

5.21%

Explanation:

The Stone Harbor Fund

NAV= Investment in portfolio - liabilities/ Numbers of share outstanding

(430-8)/10

=422/10

=$42.2

Discount will be : $42.2 -40 shares

=$2.2

Hence:

$2.2/$42.2

=5.21%

Therefore the premium or discount as a percent of NAV will be 5.21%

4 0
2 years ago
​what is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,00
nikdorinn [45]

Answer:12

Explanation:

4 0
2 years ago
"Based on historical figures, how much would you LOSE by putting your money in a savings account compared to investing in the st
Mama L [17]

Answer:

4.5% annual interest.

Explanation:

Assuming that we are talking about a specific Savings Account then we can say that the average APY on a savings account such as HSBC savings is 2.5% per year. On the other hand, the stock market has an average APY of 7% annually. Therefore, in order to find how much you would lose by putting your money in a savings account, we would need to subtract the savings account APY from the stock market APY.

7% - 2.5% = 4.5%

We can see that what you would lose in opportunity cost is 4.5% annual interest.

6 0
3 years ago
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