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
andrey2020 [161]
3 years ago
9

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.15, but management expects to reduce the p

ayout by 6 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today
Business
1 answer:
horrorfan [7]3 years ago
3 0

Answer:

the stock price is $58.23

Explanation:

The computation of the price pay per share today is shown below:

Stock price is

= Current year dividend ÷ (required rate of return - growth rate)  

= $11.15 × (1 - 0.06) ÷ (12% - (-6%)

= $10.48 ÷ 18%

= $58.23

Hence, the stock price is $58.23

We simply applied the above formula so that the correct value could come

And, the same is to be considered

You might be interested in
Gary and Wilma Johnson plan to open a bus tour business, taking people from their small city to historic sites along the East Co
Komok [63]
The answer to the given question above would be option D. Profit Margin. On the given scenario above, since they will be offering different kinds of services at once, what they should pay attention to is the profit margin or the net margin. Profit margin serves as the measurement of profitability. This is expressed in percentage and shows how much the return sales are that are generated by the company based on the amount they have initially invested. 
4 0
3 years ago
Read 2 more answers
The entity’s manufacturing division, whose assets constituted 75% of its total assets at September 30, Year 5 (end of year), was
belka [17]

The event should be presented in the financial statements as follows:

1. The assets side of the balance sheet will be reduced by 75%, with its accompanying accumulated depreciation.

2. The bonded liability on the balance sheet is eliminated by the relevant amount.

3. The journal entry should debit the Bonded Liability and accumulated depreciation, while the assets worth 75% are credited.

4. If the bonded indebtedness is more than 75% of the assets, the company records a profit on disposal on the income statement. Otherwise, it records a loss. If they are equal, there is no profit or loss.

Thus, the difference between the debit and credit entries constitutes either profit or loss on disposal.

Learn more: brainly.com/question/17329408

5 0
2 years ago
Occurs when several groups, that are largely independent in their functions, collectively contribute to a common output
iren2701 [21]

Pooled interdependence

3 0
3 years ago
The expected rate of return for a stock whose next dividend is "DIV1", that has a required rate of return "r" and expects to gro
Tema [17]

Answer:

The correct answer is r=(DIV1/P0)+g

Explanation:

The expected rate of return for a stock is usually the dividend yield  added to capital gains yield.

Dividend yield is the percentage of the share's price that the company pays to shareholders as dividends and the formula is the dividends divided by the share price, hence in this scenario it DIV1/PO

On other hand,capital gains yield is the percentage increase of the share price over time. In other words, the share price growth rate,which is a market expectation of the company's performance.The g given in the question depicted this.

Without mincing words,the expected rate of return on the stock is dividends yield(DIV1/P0) plus the capital gains yield(g)

6 0
3 years ago
Financial markets and channel to . They also channel money from individuals who want to for the future to those who need cash to
Monica [59]

Answer:

financial intermediaries, saving, real investment, save, mutual funds, ETF, commodity market, shares, stock market, banks, CFO, liquids

Explanation:

The Question is incomplete. Here Is the complete Question.

Fill in the blanks in the following passage by choosing most appropriate word from the list:  CFO, save, financial intermediaries, stock market, saving, real investment, bonds, commodity markets, mutual funds, shares, liquids, ETFs, banks. each term should be used only once.

Financial market and ________ channel______ to_____ . They also channel money from individuals who want to_________ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example,______ , such as the Vanguard Index fund, and ______, such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the______ to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the_______ of public companies are because they are traded in huge volumes on the______ .  ________ are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the______ of a company that is contemplating an issue of debt can look at the yields on existing______ to gauge how much interest the company will need to pay.

7 0
3 years ago
Other questions:
  • Pick a common household appliance or machine, and think of some creative ways in which it could be improved by becoming part of
    9·1 answer
  • organizations can gain competitive advantage simply by matching their competition in terms of cutting cost and responsiveness to
    8·2 answers
  • Compute the Work-in-Process transferred to the finished goods warehouse on April 30 using the following information:
    10·1 answer
  • Why do individuals have rights when they are accused of criminal acts?
    7·2 answers
  • Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1, 2018.
    14·1 answer
  • You would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be
    7·1 answer
  • homeworklib The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication an
    15·1 answer
  • Is anyone gonna help I posted the same thing 3 times and no one will help. Ive been stuck in my room for days trying to get this
    6·2 answers
  • Collin Printing began operations on January 1. On January 7, Collin purchased supplies on account for $1,000. At the end of Janu
    11·1 answer
  • The potential exposure that any individual firm bears that the second party to any financial contract will be unable to fulfill
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!