The amount I will pay for the company's stock today is $42.40.
<h3>How much would I pay for the company's stock?</h3>
The amount I would pay for the company's stock is dependent on the value of the stock. The value of the stock can be determined using the Gordon growth model.
According to the Gordon growth model, the value of a stock is a factor of its dividend, growth rate and the rate of return.
Value of a stock = next year dividend / (rate of return - growth rate)
$2.65 / (11 - 4.75%)
$2.65 / 6.25%
$2.65 / 0.0625 = $42.40
To learn more about how to determine the value of a stock, please check: brainly.com/question/15710204
#SPJ1
Answer:
(A) Interest coverage charge ratio= 6.21
(B) Fixed charge coverage = 2.84
(C) Profit margin ratio= 8.57%
(D) Total assets turnover= 1.55
(E) Return on assets= 13.26%
Explanation:
(A) The Interest coverage charge ratio can be calculated as follows= EBIT/Interest expense
= 45,300/7,300
= 6.21
(B) The fixed charge coverage can be calculated as follows
= income before fixed charge + interest/fixed charges + interest
= 45,300+13,300/7,300+13,300
= 58,600/20,600
= 2.84
(C) The profit margin ratio can be calculated as follows
= Net income/sales × 100
= 22,800/266,000 × 100
=0.0857 × 100
= 8.57%
(D) The total assets turnover can be calculated as follows
= Sales/total assets
= 266,000/172,000
= 1.55
(E) The return on assets can be calculated as follows
= Net income/Total assets × 100
= 22,800/172,000 × 100
= 0.13255×100
= 13.26%
Answer:
Why can't the Fed push the rate any lower than zero?
Real interest rates can be lower than zero, or negative (because inflation rate is higher than interest rate), but nominal interest rates are generally only limited to zero. But during this same time, the European Central Bank actually started paying negative interest rates on money deposits and many European private banks followed. That means that they charged people for having their money on the bank.
Why do you think that the Fed was so seemingly reluctant to push the rate all the way to the floor?
The reason why the Fed was not willing to push the interest rates to zero or even below zero was that by doing so, the US dollar would have depreciated or lost value. In Europe this was done to encourage people to spend their money and not save as much, but in the US that is not really a problem. Generally in the US the problem is that people spend too much and save too little, but on some European countries and Japan, people tend to save too much. For example in Japan the national savings rate fluctuates between 22-40%, while the maximum savings rate in the US has been 10.4% in 1960, it currently is around 7.6%.
Answer:
Cash flow = $35
Explanation:
Cash flow= Payout ratio*net income-price of stock= 0.30*400-85=35
Answer:
An information search.
What is information search?
is a stage in the Consumer Decision Process during which a consumer searches for internal or external information.
