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Anarel [89]
3 years ago
14

Burnett Corp. pays a constant $8.75 dividend on its stock. The company will maintain this dividend for the next 10 years and wil

l then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current share price
Business
1 answer:
goldfiish [28.3K]3 years ago
5 0

Answer: $49.44

Explanation:

The current share price will be calculated as follows:

Dividend = $8.75

Required return rate = 12%

Number of years, N = 10

Then, the present value annuity for 10 years will be calculated as:

= (1 - (1+r)^-n) / r

= (1 - (1+12%)^-10) / 12%)

= $5.65

Then, the current share price will be:

= Dividend × present value annuity for 10 yrs

= $8.75 × 5.65

= $49.44

Therefore, the current share price is $49.44.

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Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 months remaining until maturity. The face value
Katena32 [7]

Answer:

Price of treasury bill = $9,803.92

Explanation:

<em>The price of the treasury note would be the present value of the future receivable on maturity discounted at the rate of return of 2% per six-month.</em>

The formula is FV = PV × (1+r)^(n)

PV = Present Value- ?

FV - Future Value, - 10,000

n- number of years- 1/2

r- interest rate - 2%

PV = 10,000 × (1.02)^(-1)

PV = 9,803.92

Price of treasury bill = $9,803.92

5 0
3 years ago
With relationship selling the salesperson would spend most of his or her contact time with the prospect talking about the produc
Vadim26 [7]

True, With relationship selling the salesperson would spend most of his or her contact time with the prospect talking about the product, hoping to close the sale.

<h3>What is the difference between relationship selling and consultative selling?</h3>

The difference between relationship selling vs. consultative selling is that relationship selling consists of building a relationship with a customer over a long time and then relying on that relationship for sales as opposed to short-term gains and creating an interest in the customer in consultative selling

To learn more about relationship selling, refer

brainly.com/question/28120879

#SPJ4

4 0
1 year ago
Alana lives in a country in which the government does not impose quotas on what can be imported or on what businesses can produc
Elis [28]

Answer:

Free-market

Explanation:

As Alana can import without paying quotas to the government the economy i nthis country is of free-market. The government doesn't try to restrict their citizens from the goods and services offered fro manother countries.

Same is true for the sale of national product to abroa,there is no qupta, tariff or additional cost involved in trade thant those generated from the transactions. It is tax-free to import and export

5 0
3 years ago
During its 1st month of business, Noodlecake's cash increased by receiving $5,000 from issuing common stock to its owners, borro
Anestetic [448]

Answer:

Noodlecake

On its statement of cash flows, Cash Provided by Operating Activities equals $__1,000____ Cash from Investing Activities equals $__(3,000)______ Cash from Financing Activities equals $_7,000______  and the Change in Cash equals $_5,000______ Be sure to use parentheses around the amount if it is a cash outflow, e.g. $(1,000)

Explanation:

a) Data and Calculations:

Financing activities:

Common stock $5,000

Bank loan            2,000

Net cash           $7,000

Operating activities:

Cash from customer $3,000

Cash to employees   (2,000)

Net cash                    $1,000

Investing activities:

Equipment     ($3,000)

Net cash from cash flows = $5,000

The net cash from cash flows or the change in cash flows is the summation of the changes in the operating, investing, and financing activities of Noodlecake during the period under review.  It shows by how much the cash has increased or decreased when compared to the beginning balance, which can be zero as in this case.

3 0
3 years ago
Overhead Application, Overhead Variances, Journal EntriesPlimpton Company produces countertop ovens. Plimpton uses a standard co
kari74 [83]

Complete Question:

The first two files attached contain the complete question

Answer:

Other file shows a step by step solution as follows

answer 1

answer2 etc

3 0
3 years ago
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