1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sholpan [36]
3 years ago
11

MECCS Inc. stock paid its annual dividends of $4.90 per share yesterday. The dividend is expected to decrease at a constant rate

of 2.50 percent per year indefinitely. Investors require a rate of return of 8.60 percent on the stock. How much should one share of the stock be priced today
Business
1 answer:
emmainna [20.7K]3 years ago
7 0

Answer: $43

Explanation:

The current stock price will be calculated as:

= Do(1 - g) / (Ke + g)

where,

Do = $ 4.90

g = 2.50%

Ke = 8.60%

Po = [4.90 - (1 - 0.025)] / [0.086 + 0.025]

Po = 4.7775 / 0.111

Po = $43

The price of one share of the stock today will be $43

You might be interested in
Who is the Father of accounting
vovangra [49]

Answer:

Luca Pacioli

Luca Pacioli, was a Franciscan friar born in Borgo San Sepolcro in what is now Northern Italy in 1446 or 1447.

5 0
2 years ago
What kind of consumer is a human in the food chain??
djyliett [7]
Predator, because thats pretty much all we do.
7 0
3 years ago
Issy's Ice Cream is an international business. As such, it a. invests in international trade or investment. b. needs to have man
pentagon [3]

Answer: The correct answers are "a. invests in international trade or investment." and d. needs to manufacture products or provide services that target a global market.".

Explanation: A company that engages in international business is one that trades goods, services, technology or physical and / or human capital globally.

This means that instead of existing and developing in separate national markets, it unites and transforms them into a single global market through the elimination of barriers between borders.

4 0
3 years ago
seth is thinking of a number between 20 and 30. the number is prime and not more than 2 away from a perfect square. what is the
elena-s [515]
23 is the answer because perfect square is between 20 and 30 is 25 and since the number is prime is has to be 23.
8 0
3 years ago
Logan, an employee of Argon Industries, earned a salary of $60,000 in year 2. In addition, the following two transactions betwee
Mariana [72]

Answer:

$88,000

Explanation:

Calculation to determine What amount of compensation should Argon report in Logan's Form W-2 for year 2

First step is to determine the bargain element

Bargain Element=$25 per share-$10per share

Bargain Element=$15 per share

Now let determine the amount of compensation

Using this formula

Compensation=Salary earned+Taded stock+(Shares of publicly traded stock*Bargain element)

Let plug in the formula

Compensation=$60,000+$13,000+($100 shares*$15 per share)

Compensation=$60,000+$13,000+$15,000

Compensation=$88,000

Therefore the amount of compensation that Argon should report in Logan's Form W-2 for year 2 $88,000

8 0
3 years ago
Other questions:
  • a truck costs $35,000 with a residual value of $2000. its service life is five years using the declining balance method at twice
    5·1 answer
  • Which of the entries in the list below are capital​ goods?
    7·1 answer
  • While on a hike with a tour group in the mountains, Derek gets mauled by a bear. No previous reports of bears in the area had be
    11·1 answer
  • The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.
    14·1 answer
  • Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from t
    12·1 answer
  • Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $12,000 Variable manuf
    5·1 answer
  • In recent times, only __________ median income of about $56,000 exceeded that of the united states at about $50,000.
    11·1 answer
  • KLA Company provided the following data for 2018: sales, $800,000; beginning inventory, $40,000; ending inventory, $45,000; and
    9·1 answer
  • Given the following information about each economy, either calculate the missing variable or determine that it cannot be calcula
    6·1 answer
  • What website would be the best to use to find the best steakhouse near your home?.
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!