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musickatia [10]
3 years ago
10

A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves

tors' required rate of return is 14.2%, then what is the stock price? a. $14.61 b. $12.10 c. $10.66 d. $12.70 e. $11.98
Business
1 answer:
WARRIOR [948]3 years ago
4 0

Answer:

. $11.98

Explanation:

D1 = D0(1+g)

D0 = Last dividend

r = Required rate of retrun

g = Growth rate

Stock price formula = D1/(r-g)

Stock price = D0(1+g)/(r-g)

Stock price = 1*(1+0.054) / (0.142-0.054)

Stock price = 1.054 / 0.088

Stock price = 11.97727273

Stock price = $11.98

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The Hype Company's currently outstanding bonds have a 10 percent coupon and a 11 percent yield to maturity. Hype believes it cou
zavuch27 [327]

Answer:

After tax cost of debt is 6.82%

Explanation:

Currently the yield to maturity is the  pre-tax cost of debt for Hype company, however the after tax cost of debt considers that the bonds are tax deductible , its actual is less than the pre-tax cost of debt , hence the after-tax cost of debt is shown below

After tax cost of debt=yield to maturity *(1-tax)

after tax cost of debt=11%*(1-0.38)

after tax cost of debt=11%*0.62

after tax cost of debt =6.82%

This confirms that cost of debt is usually lower than cost of equity , where shareholders would want an extra premium to compensate them for the increased risk taken by investing in the business.

5 0
3 years ago
Due to the complexity of the incident, the Incident Commander has expanded the Operations Section to include an Evacuation Group
Gnom [1K]

Answer:

Modular Organization

Explanation:

Modular organization is an Incident Command System structure that employs a top-down approach and identify a response organization structure on the basis of the size, complexity, or hazardous effect of an incident. It is the responsibility of the Incident Commander to establish and expand the modular organization as was the case in the example. The ICS organization was expanded to include the Evacuation Group due to the size, complexity, or severity of hazard.

3 0
3 years ago
1)If an interest rate is fixed that means the rate
Bad White [126]
Number 1 is B
number 2 is C

7 0
3 years ago
Read 2 more answers
Amy is a current shareholder of DJ Industries. She has been given the right to purchase an additional 25 shares of DJ Industries
jasenka [17]

Answer:

stock warrant

Explanation:

Amy was given a stock warrant which gives her the right to purchase a specific number of stocks (25 stocks) at a specific price ($32) during a specific time period (12 months). Stock warrants are issued directly by the corporation to the stockholders. Stock warrants are also tradable, so Amy can choose to sell them to another investor.

7 0
3 years ago
Graphically, the full-employment, stable-inflation, rapid-growth economy of the last half of the 1990s is depicted by a?
Mamont248 [21]

Graphically, the full-employment, stable-inflation, rapid-growth economy of the last half of the 1990s is depicted by a rightward shift of the aggregate demand curve along a fixed aggregate supply curve.

An economy is a place of manufacturing, distribution, and change, as well as consumption of goods and services. In preferred, it's miles described as a social domain that emphasizes the practices, discourses, and cloth expressions related to the production, use, and management of scarce assets.

An economy is the massive set of inter-associated production and consumption sports that are useful resources in determining how scarce sources are allotted. In a financial system, the manufacturing and intake of products and services are used to fulfill the wishes of these living and working within it.

The economy is defined because of the management of monetary topics for a community, business, or circle of relatives. An instance of an economic system is the stock market device within the US.

Learn more about economy here brainly.com/question/1106682

#SPJ4

7 0
2 years ago
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