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alina1380 [7]
2 years ago
11

19. Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.30 a share. The company has promise

d to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 11.60 percent on your equity investments
Business
1 answer:
Westkost [7]2 years ago
4 0

Answer:

The maximum that should be paid for the stock today is P0 = $19.82758621 rounded off to $19.83

Explanation:

Using the zero growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = Dividend / r  

Where,

  • r is the required rate of return  

P0 = 2.3 / 0.1160

P0 = $19.82758621 rounded off to $19.83

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B. Respect the privacy of others

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3 years ago
ASAP Please help and thank you!
valina [46]

Charles' human life value will be $249,200.

<h3>What is the process of calculating life value?</h3>

The process of calculation of life value in an insurance is that first of all determine the current income and than subtract the expense, premiums of insurance, and payment of income tax. The third step is recall the number of years of earning which are remaining before the age of retirement .The life value is an economic value which is used to judge the benefit for the reason of avoiding the rate of fatality.

The third step is recall the number of years of earning which are remaining before the age of retirement and than find the discounting factor rate including inflation.The life value is an economic value which is used to judge the benefit for the reason of avoiding the rate of fatality.

Therefore, Charles' human life value will be $249,200.

Learn more about life value here:

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Classical economics reoriented economic thinking away from the approach that was based on the preferences of rulers or social classes. The classics emphasized the benefits of free trade and developed an organized analysis of the value of goods and services as a reflection of their cost of production.

Classical economists opposed government intervention in the market through price controls, fees, regulations or any other mechanism that altered its normal functioning.

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Dimas [21]

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