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
vitfil [10]
2 years ago
6

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth

rate falling off to a constant 5 percent thereafter. If the required return is 12 percent, and the company just paid a dividend of $2.35, what is the current share price
Business
1 answer:
Temka [501]2 years ago
7 0

Answer:

53.98

Explanation:

current share price is the present value of dividends

Year 1 = 2.35 x 1.22 = 2.867

Year 2 = 2.867 x 1.22 = 3.50

Year 3 = 3.50 x 1.22 = 4.27

+ 4.27 x 1.05 / (0.12 - 0.05) = 64

I - 12%

PV = 53.98

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  

You might be interested in
In late December you decide, for tax purposes, to sell a losing position that you hold in Twitter, which is listed on the NYSE,
Mariana [72]

Answer:

4

Explanation:

7 0
2 years ago
2. Marcus Gardner is buying a new computer
kompoz [17]

Answer:

A $155.94

Explanation:

A down payment is an initial payment that is paid cash to the buyer. It is the same as the deposit. Marcus must have been buying the compute of credit. The down payment or deposit shows that the customer is serious about buying the item.

The deposit that Marcus paid is 12%.

The cost of the new computer is $1,229.50

The deposit will be 12% of $1,229.50

=12/100 x $1,229.50

=0.12 x $ 1,229.50

=$155.94

4 0
3 years ago
An economy is operating with output $300 billion above its natural level, and fiscal policymakers want to close this expansionar
topjm [15]

Answer:

$120 billion

Explanation:

Economy operating at $300 billion above its natural level of output.

Marginal propensity to consume, MPC = 3/5 = 0.6

For closing this expansionary gap, the government have to decrease its spending by the amount calculated as follows:

Spending multiplier:

= 1/ (1 - MPC)

= 1/ (1 - 0.6)

= 1/ 0.4

= 2.5

Hence, the government spending reduces by

= Expansionary gap ÷ Spending multiplier

= $300 ÷ 2.5

= $120 billion

4 0
3 years ago
What would you say are four major faults of measurement
-BARSIC- [3]

Answer:

The major faults of measurement are:

  • Coverage
  • Measurement
  • Sampling and
  • Response

Explanation:

During business research, the data collected during the survey can become very unusable due to errors arising from the factors listed above.

The problem of coverage arises when for instance an electronic survey is used to collect data from a sample population where 69% for instance, do not have access to a mobile phone or a computer.

Measurement problems during a survey speak to the ability to properly design a questionnaire in such a way that it elicits the right kinds of responses. This means asking the right questions so that the responses or answers are accurate. The irony of measurement error is that one's survey is useless if they got the questionnaire design wrong, regardless of whether or not the response rate was very high.

After administering a survey and there is little or no response, one is said to have an error in response rate. A low response rate increases the error margin of the survey as well as it's unreliability.

Sampling errors are said to occur when the sample size is too small or statistically homogenous such that it does not accurately represent the entire population. When this happens it is termed <em>sample frame error.</em>

Another error can occur when the researcher includes the wrong population or excludes the right population. This is called <em>Error in Population Specification. </em>

Cheers

4 0
2 years ago
All of the following statements regarding management accounting's role in assigning decision-making authority are true except: M
Olin [163]

Answer:

All statements are TRUE except Option "A"

Explanation:

Accounting control history is used for policy-making objectives, and historical information is redundant.

  • Managerial accounting is used for short-and long-term decision making that involve overall financial health. It helps businesses make administrative decisions–meaning to help increase the efficiency and productivity of the business–while also helping to make long-term investment decisions.

Therefore,all answers are correct except "A"

6 0
2 years ago
Other questions:
  • Maertge airlines purchases an aircraft for $84,000,000 on january 1, 2016. the residual value of the aircraft is estimated at $7
    8·1 answer
  • Using an accommodation strategy to resolve a conflict can:(A) force people to work toward achieving their goals at all costs, ev
    7·1 answer
  • Brian has just finished college. He wants to set up a small business to make and sell fireworks. He registers his company and ac
    15·2 answers
  • Weston Corporation just paid a dividend of $1.00 a share (i.e., D0 5 $1.00). The dividend is expected to grow 12% a year for the
    14·1 answer
  • The depreciation method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is
    12·1 answer
  • Anne Mullens is the bookkeeper for DWG Refrigeration Repair. One afternoon while she was preparing the bank deposit, a customer
    14·1 answer
  • Which one of the following statements is not true? a. A company using the periodic system does not maintain a continuous record
    10·2 answers
  • In a market there is a shortage of a good. What change would cause the market to come to an equilibrium?
    11·1 answer
  • If an offerer offers to buy back a securities issue that was inadvertently sold in the state, buyers of the issue have how many
    5·1 answer
  • Explain how banks have transformed their commercial lending business from asset transformation to brokerage services
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!