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PilotLPTM [1.2K]
3 years ago
5

Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growt

h rate falling off to a constant 7.5 percent thereafter. If the required return is 13 percent and the company just paid a dividend of $2.55, what is the current share price
Business
1 answer:
GaryK [48]3 years ago
3 0

Answer:

hmmmmmmmmmmmmm

Explanation:

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Neil and John both need $20,000 to clear off a mortgage payment after 10 years. Neil invests $15,000 at 3 percent per annum of s
Dafna1 [17]

Answer:

John

Explanation:

Neil will have the following amount after ten years.

Simple interest is calculated using the formula,

I= p x r x t

where I= interest, P= principal amount, r = interest rate, t is time

for Neil interest will be= $15,000 x 3/100 x 10

=$15,000 x 0.03 x 10

=$4500

Neil will have principal + interest amount

=$4,500 + $15,000

=$19,500

John invested in a compound interest account.

The amount after ten years will be

The formula for compound interest is

FV = PV × (1+r)^n

where FV = Future Value

PV = Present Value

r = annual interest rate

n = number of periods

After ten years, John will have

Fv= $15,000 x (1 + 3/100)^10

Fv= $15,000 x (1.03)^10

FV =$15,000 x 1.34391

Fv = $15,158.75

John will be able to clear his mortgage.

6 0
4 years ago
The multiplier effect occurs when an initial increase (or decrease) in autonomous expenditure produces a greater increase (or de
-BARSIC- [3]

Answer: b. both government spending changes and tax changes

Explanation:

The Multiplier effect as described in the question applies when the Government uses either taxes of Government Spending to influence the economy. When Taxes are imposed or relaxed however, it has been shown that they provide a less multiplier effect than when the Government uses Spending as an influence.

This is because when the Government spends it leads to a ripple effect that creates more income but when taxes are cut and people have <em>more disposable income</em>, it is up to them how much of that to save and how much to spend and they usually do not spend all of it.

5 0
3 years ago
A mutual fund with beta of 0.8 has an expected rate of return of 14%. If the risk-free rate is 5% and you expect the rate of ret
Nikitich [7]

Answer:

1%

Explanation:

Portfolio's alpha = expected return of the portfolio - required return of the portfolio

Alpha = 14% - (5% + (0.8 x 10%)) = 14% - (5% + 8%) = 1%

A portfolio's alpha is the excess return yielded by the portfolio compared to the market's expected return for a similar investment.

5 0
3 years ago
Hunting from a treestand has its advantages but also has its risks. when do most accidents occur when hunting from a treestand?
wlad13 [49]

An observation of Vermont and North Carolina bowhunters revealed the following: 74% of the accidents befell while mountain climbing up or down or when putting in or putting off a stand.

Tree stands fall into 3 primary sorts: hang-on fashion, climbers, and ladder-style. Everyone has their very own protection requirements. exercise putting in and adjusting all tree stands on a tree at ground degree with a capable-bodied person status by means of for assistance.

Dangle-on stands are the most dangerous, it said, involved in 33 percent of archery season injuries and 44 percent of firearms season accidents. Ladder stands, hiking stands, and “other” kinds had been, so as, the next most dangerous for archers, while for gun hunters it became hiking stands, ladder stands, and “different.”

In that same yr, Hermann Albrecht of Philadelphia, Pennsylvania received U.S. Patent 183, hundred and U.S. Patent 183,194as two of the first Christmas tree stand patents issued inside the u.s.

Learn more about treestand here: brainly.com/question/25292087

#SPJ4

6 0
1 year ago
With any successful hedge, you can avoid the accounting ramifications of a loss on one side by keeping it off the books. you are
Leviafan [203]

Answer:

none of the options

Explanation:

Hene in accounting is the situation whereby hedge managers where able to raise capital for a given business venture. The invested money helps in making further money for those hedge companies or its manager.

8 0
3 years ago
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