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Olegator [25]
3 years ago
8

Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr

ow at a constant rate of 6.00% per year in the future. The company's beta is 1.95, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price? Select the correct answer. a. $13.66 b. $12.32 c. $11.65 d. $12.99 e. $14.33
Business
1 answer:
amid [387]3 years ago
5 0

Answer:

$11.65

Explanation:

The first step is to calculate the return

= 4/100 + 1.95(5.50/100)

= 0.04 + 1.95(0.055)

= 0.04 + 0.10725

= 0.14725

The stock price can be calculated as follows

= 1.25/0.14725-0.04

= 1.25/0.10725

= $11.65

Hence the stock price is $11.65

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Cardinal Health bonds have an annual coupon rate of 3.4 percent and a par value of $1,000 and will mature in 7 years. If you req
Alex787 [66]
  • The answer is "$716.56", and the further calculation can be defined as follows:
  • Health care business, Cardinal Health Leading provider healthcare, and biopharmaceutical products and services that help pharmacists.
  • The healthcare providers impact on customer care whilst reducing costs, improving productivity, or increasing productivity.

Annual coupon to be paid\bold{= \$1000 \times 3.4\%= \$1000 \times \frac{3.4}{100}  = \$34}

years = 7

Calculating the bond price:

= \$1000 \times PVF(5\%, 7\ years) +\$34 \times PVAF(5\%, 7\ years) \\\\= \$1000 \times 0.71068 +\$34 \times 0.17282\\\\= \$710.68 + \$5.87588\\\\= \$716.55588\\\\= \$716.56\\\\

So, the final answer is "$716.56".

Learn more:

brainly.com/question/15570099

5 0
3 years ago
The use of multiple distribution channels that integrate organizations' brick-and-mortar stores with websites, catalogs, and app
Vsevolod [243]

Answer:

Multi channel marketing

Explanation:

It is an approach used by company to provide different way  to customer for buying products and services. it include various mode of retailing like, from store direct, from using websites, from mail, by telephones etc.

The main reason behind multi channel retailing is to sold as many as products and provide different way for customer satisfaction. it provide opportunity to customer to compare different product on different websites

7 0
3 years ago
Guys please help, List the economic activities to delivering evening news bulletin to your television or radio​
saul85 [17]

Economic Activities are the actions related to the production, distribution, and exchange of goods and services. So for an evening news bulletin on TV or radio, some examples are:

  • The service of the reporters who research a story and check facts
  • The cost of paper and materials used in the newsroom
  • The equipment that establishes a TV or radio signal and broadcasts it out to people
  • Cable service or radios that are purchased in order to hear/see the news
4 0
3 years ago
Describe the short run effects of each of the following socks on the aggregate price level and aggregate output. a. The governme
zhannawk [14.2K]

Answer:

The answer is

A: Aggregate price level increases and aggregate output decreases

B. Both aggregate price level aggregate output increases

C. Aggregate price level increases and aggregate output decreases

Explanation:

A. This government action will increase the aggregate price level increases due to inflation. Aggregate output will decrease due to the increase in cost of product (high wage to labor)

B. Because of the increased spending Investment in solar program, both aggregate output and aggregate price level increase.

C. Due to the severe weather destroyed crops, aggregate price level increases and aggregate output decreases. This happened because there will be decrease in supply of crops.

8 0
3 years ago
18. If the marginal product of capital net of depreciation equals 10 percent and the rate of population growth equals 2 percent,
zavuch27 [327]

Answer:

rate of technological progress = 8 %

Explanation:

given data

capital net of depreciation = 10 percent

Population growing rate = 2 percent.

solution

we will apply here Golden Rule that is

According to golden Rule level of capital accumulation is in steady state which have the highest level of the consumption

so here rate of technological progress is =  10% - 2 %

rate of technological progress = 8%

and here economy will at Golden Rule steady state

so correct answer is 8 percent

8 0
3 years ago
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