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choli [55]
2 years ago
12

Keidis Industries will pay a dividend of $4.35, $5.45, and $6.65 per share for each of the next three years, respectively. In fo

ur years, you believe that the company will be acquired for $61.00 per share. The return on similar stocks is 9.4 percent. What is the current stock price
Business
1 answer:
ICE Princess25 [194]2 years ago
4 0

Answer:

$56.19

Explanation:

Current stock price can be determined by calculating the present value of the dividend payments

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 4.35

Cash flow in year 2 = 5.45

Cash flow in year 3 = 6.65

Cash flow in year 4 = 61

I = 9.4

PV = $56.19

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Answer: Option (D)

Explanation:

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3 years ago
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environment is the correct answer.

Explanation:

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aleksklad [387]

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6 0
3 years ago
Harold, a black man, worked for Alegius Financial Services as a sales representative. On three separate occasions over a period
Mnenie [13.5K]

Answer:

The correct answer is letter "D": Harold will win his case because the employer was aware of the racially harassing behavior, yet no discipline was imposed.

Explanation:

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In Harold's case, the harassment was not specifically against him but there were clear signs of discrimination. However, Alegius Financial Services did not do anything regarding this issue what will result in finding the company liable after Harold sued them.

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