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Degger [83]
3 years ago
14

Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $15.00, $6.00 and $3.20.

Afterwards, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 19 percent, what is the current share price
Business
1 answer:
Umnica [9.8K]3 years ago
7 0

Answer:

P0 = $45.299899  rounded off to $45.30

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

  • D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on
  • g is the constant growth rate in dividends
  • r is the discount rate or required rate of return

P0 = 22 / (1+0.19)  +  15 / (1+0.19)^2  +  6 / (1+0.19)^3  + 3.2 / (1+0.19)^4  +  

[(3.2 * (1+0.04) / (0.19 - 0.04)) / (1+0.19)^4]

P0 = $45.299899  rounded off to $45.30

Read more on Brainly.com - brainly.com/question/22666091#readmore

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A company has two options for manufacturing boots. The manual process has monthly fixed costs of $26,380 and variable costs of $
oee [108]

Answer:

Break-even point for the manual process= 281.11 unit

Explanation:

<em>Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss because the total contribution exactly equals the total fixed costs</em>.

Break even point in units is calculated using this formula:  

Break even point in units = Total general fixed cost/ (selling price - Variable cost)

Break-even point for the manual process:

Break-even point in units = $26,380/(99- 5.16) = 281.11 units

Break-even point for the manual process= 281.11 units

6 0
3 years ago
Many people use mobile apps and online software to manage and create personalized budgets. Suppose your task is to develop an on
mash [69]

Answer:

health,transportation, food,education, credit,different types of bill,and money for vacation

Explanation:

the feature will be: 1.it will be data base 2.it will include all an average human being would love to acquire

4 0
4 years ago
In economic duress cases the courts look of<br> the_?_ and the victim's alternatives.
cupoosta [38]

<u>Answer:</u> In economic duress cases the courts look of

the threats and the victim's alternatives.

<u>Explanation:</u>

Duress means where violence is used against the party to forcefully receive signatures of approval on written contract. The violence used can be unlawful threats or coercive behavior without which the person may not agree to commit to. If the pressure given is lawful it does not mean the economic duress is lawful.

Duress is an illegal act which is punishable under law. The court will check if the party had any threat. Also the court will check if the victim had any alternatives such as protesting at that time or the victim has affirmed the contract.

4 0
4 years ago
To help food advertisers produce more effective advertising, the Food Marketing Institute did a study that asked respondents whi
lara [203]

Considering the situation described above, the answer to this question is an example of quantitative research.

This is because quantitative research is a type of research that seeks to measure and interpret numerical data.

It is carried out by gathering, assessing, and decoding numerical data. These data can be responses from people, which are then ranked based on number of respondents on each response.

Thus, in this case, the options that ranked highest in number would be the option the researcher would pick.

Hence, in this case, it is concluded that the correct answer to the question is Quantitative Research.

Learn more here: brainly.com/question/25022102

4 0
3 years ago
Suppose you deposit ​$2 comma 5002,500 cash into your checking account. By how much will checking deposits in the banking system
algol13

Answer:

The change in checking deposit is equal to $22,727.27.

Explanation:

An amount of $2,500 is deposited in a checking account.

The required reserve ratio is 0.11 or 11%.

A part of this deposit will go to the required reserve and the rest will be added in the checking deposit of the bank.

The change in the checking deposits will be

= \frac{1}{RR} \times amount deposited

= \frac{1}{0.11}\times \$ 2,500

= $22,727.27

3 0
3 years ago
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