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
Bad White [126]
2 years ago
11

Springfield Nuclear Power, Inc. will pay dividends of $1, $2, and $2.50 over the next 3 years. After 3 years, dividends will gro

w at 10%. The cost of equity (the discount rate) on this stock is 15%. What should the stock price be today
Business
1 answer:
slamgirl [31]2 years ago
6 0

Answer:

Explanation:

To find the price of the stock today, first find the present value of the dividends and then the value of the stock growing at a constant rate. Add the two results together

Present value can be found using a financial calculator

Cash flow in year 1 = $1

Cash flow in year 2 = $2

Cash flow in year 3 = $2.50

i = 15%

present value = $4.03

the value of the stock growing at a constant rate

dividend in year 3 x ( 1 + growth rate) / cost of equity - growth rate

$2.5(1.1) / 0.05 = $55

$55 + $4.03 = $59.03

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
Cretically analyse the difference and the point of convergence between floor inspection and functional inspection
VikaD [51]

Answer and Explanation:

The connection between Floor and Function Inspection is that these two techniques are used to eliminate and identify defective raw materials prior to the development of the same. Quality is the key priority for both processes, where standards are reviewed and evaluated to ensure that the operation continues correctly.

The distinction between the two is that in Floor Inspection the system inspects the material in process doe the machine or at the time of production to ensure that each and every machine or floor is working effectively. It is to make share the material processing costs don't go out or it could easily be found by hand and defect.

The Functional Inspection, on the other hand, will have the key feature tested which the product is supposed to perform. For instance, if the same has the right speed and output, the electric motor could be tested up. It doesn't inform us about the variability throughout all parts but gives us an overall view of the satisfaction that comes from investigating the same commodity.

6 0
2 years ago
Your portfolio is 230 shares of Barden, Inc. The stock currently sells for $93 per share. The company has announced a dividend o
Ipatiy [6.2K]

Answer:

Your stock will be valued in $20,838.

Explanation:

If there are no taxes, it is expected that the value of the stock will lower the amount of the dividend. That means

Stock price (April 19) = stock price - dividend = 93-2.4=90.6 $/share

In this case, your stock of 230 shares will be valued as

Stock value = Stock share * stock price = 230 shares * $90.6/share

Stock value = $ 20,838

Your stock will be valued in $20,838.

6 0
3 years ago
Distinguish between private and public company???​
Mashutka [201]

Answer:

-Private company has mininmum 1 and maximum 101 member.

Public company has minimum 7 member and maximum is bounded by its share capital.

-Private company is smaller than the public companies by the no.of capital.

Public company is larger than private company and spread in different place.

-Private company uses the term Private limited after its name.

Public company uses the term Limited after its name.

-Examples of Private company are: Asmita Book Publication Pvt.ltd and Karunanidhi Education Foundation Pvt.ltd

Examples of Public company are:Nepal oil corporation and Nepal electricity Authority.

5 0
2 years ago
Read 2 more answers
[5] According to the FASB’s conceptual framework, which of the following best describes the distinction between expenses and los
PIT_PIT [208]

Answer:

D. Losses result from peripheral or incidental transactions, and expenses result from ongoing major or central operations of the entity

Explanation:

The expenses represent the cash outlow or liabilities taken to carry out the activities to continue his operations.

While the Gains and Losses are incidental transactions or other events which are not controlled by the entity management. They aren't the outcome of the company's decisions. Thus, they could arise from changes in price of real state, equipment, tecnology breakthrough which means equipment obsolete and so on.

7 0
3 years ago
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand foreca
Alex73 [517]

Answer:

The optimal production plan gives a total costs of $417,672 for the periods Feb to May

In Feb we will have to hire 26 workers to close the gap between demand and production from our 100 existing workers

In March however, we will have to lay them off (26 workers) to keep our production in line with demand.

In April, we are constrained to 100 workers, thus requiring that we run overtime. The overtime requirement is between 3,060 hours to max of 5,000 hours. Note that inspire of the hours chosen, demand for April still won't be fulfilled.

The best option will be the one that gives us last backlog because of the costs of backorder being extremely costly.

5,000 overtime hours in April is the best option .

In May, we are constrained to our 100 workers, meaning we will fulfill our back orders and also retain inventory in hand of 7,760 units.

The 3 pages attached show how the cost is worked out and the presentation as well.

3 0
3 years ago
Other questions:
  • In IBP Exercise 09-03 you ran an MRP to produce only the Silver Deluxe Touring Bikes. Now, you can pick up where you left off an
    14·1 answer
  • Tammy Knowles is the publisher of "New Woman Magazine," which is a publication targeted to Gen Y women. Because it is a small, n
    5·1 answer
  • Allison peavy wants to invest but is worried about risk: in particular, she is worried that bad management and increased competi
    13·1 answer
  • Use this information for Rylan Corporation to answer the question that follow. Rylan Corporation received an offer from an expor
    14·1 answer
  • When an owner records a credit for $650 for revenue earned but not yet recieved, the amount of the debit should be
    9·1 answer
  • A good investment should do one or both of which two things
    10·2 answers
  • When Wells Fargo employees fraudulently opened customer accounts in order to meet extremely high sales quotas, rehabilitating th
    15·1 answer
  • Determine whether each of the following transactions contributes to the calculation of GDP as total spending, then, identify the
    14·1 answer
  • Yahoo! recently eliminated _________ despite its many advantages because it was perceived as undermining corporate culture.
    5·1 answer
  • The sales returns and sales allowances accounts are classified as
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!