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Andrei [34K]
3 years ago
5

Beatrice Markets is expecting a period of intense growth and has decided to retain more of its earnings to help finance that gro

wth. As a result, it is going to reduce its annual dividend by 30 percent a year for the next 2 years. After that, it will maintain a constant dividend of $2.50 a share. Last year, the company paid $3.60 as the annual dividend per share. What is the market value of this stock if the required rate of return is 14.5 percent?
Business
1 answer:
VLD [36.1K]3 years ago
3 0

Answer: $16.69

Explanation:

Using the Dividend growth model, the value is:

= [Dividend 1/ (1 + required return)] + [Dividend 2/ (1 + required return)²] + [Terminal value / (1 + required return)²]

Terminal value = Dividend after 2 years / (required return - growth)

= 2.50/ (14.5% + 0%)

= $17.24

Dividend 1 = 3.60 * ( 1 -30%)                                Dividend 2 = 2.52 * ( 1 -30%)

= $2.52                                                                                     = $1.76

Market value = (2.52 / 1.145) + (1.76 / 1.145²) + (17.24/1.145²)

= $16.69

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The largest owner/operator of radio stations in the United States is ____________________. In 2006, this company became a privat
valentina_108 [34]

The largest owner/operator of radio stations in the United States is iHeartMedia. In 2006, this company became a privately owned company.

<h3><u>What are radio stations?</u></h3>
  • Radio broadcasting is the process of sending audio over radio waves to radio listeners in a public setting, sometimes along with accompanying metadata.
  • Unlike satellite radio, which uses a satellite in Earth's orbit, terrestrial radio broadcasting uses a land-based radio station to transmit radio waves. The listener needs a broadcast radio receiver to hear the material.
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Through its division iHeartMedia and subsidiary iHeartMedia and Entertainment, Inc., iHeartMedia, Inc. focuses on radio broadcasting, podcasting, digital, and live events. With more than 850 full-power AM and FM radio stations nationwide, it is the largest radio station owner in the nation.

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8 0
11 months ago
Metlock, Inc. has 5900 shares of 6%, $50 par value, cumulative preferred stock and 118000 shares of $1 par value common stock ou
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Answer:

$23900

Explanation:

Given: Cumulative Preferred stock is 5900 shares of 6% at $50.

           Dividend paid in 2019= $11500

First lets calculate the value of preferred stock.

Preferred stock= 5900 shares\times \$ 50\times \frac{6}{100}

∴ Preferred stock= $17700.

Formula:

Dividend received by preferred stockholder= [Preferred\ stock +(Preferred\ stock-Dividend\ paid)]

⇒Dividend received by preferred stockholder=17700+(17700-11500)

⇒ Dividend received by preferred stockholder= 17700+6200= \$ 23900

∴ $23900 dividend received by preferred stockholder in 2020.

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Comprehensive coverage under the Personal Auto Policy pays for damage to the insured auto caused by all of the following except:
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c. nuclear accident

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Personal Auto Policy is the most common policy for the insured. However, Nuclear accident is not covered under this policy. The policy covers hail, collision with animals and birds as well as falling tree branches.

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1. Which cleaning solvent is used for removing dust, grease oil, paint and others?
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2 years ago
Universal Containers conduct evaluations of their sales reps using a custom object consisting of numerical scores and executive
iris [78.8K]

Answer:

You could use a private sharing system or application that grants access through custom settings. Also, It should display page layouts and it should have field-level security.

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If the company wants to ensure that a few staff members and reps can view the rep's evaluation records, thus the private sharing application should grant access through custom settings. The page layouts should be specific by accounts, numerical scores, and executive comments. These page layouts should use field-level security to restrict reps to view the executive comment field on their review.

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