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Leona [35]
3 years ago
11

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t

he firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $15 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.
If the required return on this stock is 15 percent, what is the current share price?
Business
1 answer:
dimulka [17.4K]3 years ago
8 0

Answer:

$51.25

Explanation:

P9 = Next dividend / Required rate r - Growth rate g

P9 = $15 / 14% - 5%

P9 = $15 / 9%

P9 = $166.67

Po = P9 / (1 - Required rate of return)^9

Po = $166.67 / (1 + 0.14)^9

Po = $166.67 / 3.2519

Po = $51.25

So, the current stock price is $51.25.

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You toss a coin three times. If you toss heads exactly two times, you win $2. If you toss heads all three times, you win $8. Oth
ivanzaharov [21]

Answer:

-0.75

Explanation:

We will examine the sample space, which is used in games like this one, to see the possible outcomes of the game:

H H H

H H T

H T H

T H H

T T H

T H T

H T T

T T T

The probability for getting three heads is 1/8. The probability for getting two heads is 3/8. And the probability for everything else is 1/2.

So, when the probabilities and the payouts (or losses) are put in the weighted formula, we get:

1/8*8 + 3/8*2 + 1/2*(-3) = -0.75

So the expected <em>loss </em>in the game is <u>0.75 dollars.</u>

3 0
3 years ago
Matrix, a high-end manufacturer of men's cologne, charges high prices for its cologne because customers associate high prices wi
galben [10]

Answer:

symbolic/prestige pricing

Explanation:

Symbolic/prestige pricing occurs when consumers associate with goods based on how costly it is. If the princes of the goods are low it doesn't encourage buyers to make purchases as they seem to associate high prices with top quality.

This is why matrix charges high for its cologne. Therefore Symbolic/prestige pricing is the answer to the question.

8 0
4 years ago
How did the framers feel about the public's capacity to be politically informed and make good choices?
frez [133]

The framers were insecure, and they doubted the public's ability to be politically capable and make good choices. They were concerned if the public would be able to come up with good political judgments.

            A framer refers to a person, group, or organization that creates or frames laws, rules, plans, and systems of an institution. In the given sentence, the question is about the framers of political laws.

           The public is sometimes swayed by the masses and also the media. They do not have the power to analyze and see the truth behind the politics of the rulers. Thus, it might be possible that the public might be swayed by some rulers and fail to make an unbiased judgment.

           That is why the framers were concerned about the public's capacity to make good decisions.

To learn more about framers,

brainly.com/question/4921218

brainly.com/question/11629024

#SPJ4

7 0
2 years ago
Ordonez Lumber Yard has a current accounts receivable balance of $442,016. Credit sales for the year just ended were $9,358,610.
shutvik [7]

Answer:

Receivables turnover= Sales/ Accounts Receivables

Receivables turnover= $9,358,610 / $442,016

Receivables turnover= 21.173 times

Days' sales in receivables= 365 days/ Receivables turnover

Days' sales in receivables= 365 days/ 21.173 times

Days' sales in receivables= 17.239 days

Average collection period= Days' sales in receivables = 17.239 days

8 0
3 years ago
A. Multiple Choice: Choose the correct 1. Many farmers may forget to check the troubleshooting section, which can cost them even
Sholpan [36]

Answer:

E.Not replacing whom out when Needed

6 0
3 years ago
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