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
charle [14.2K]
3 years ago
9

Keidis Industries will pay a dividend of $2.85, $3.95, and $5.15 per share for each of the next three years, respectively. In fo

ur years, you believe that the company will be acquired for $46.00 per share. The return on similar stocks is 9.5 percent. What is the current stock price? a) $54.72 b) $45.64 c) $42.38 d) $41.82 e) $47.81
Business
1 answer:
lutik1710 [3]3 years ago
6 0

Answer:

Present value = $41.8160 rounded off to $41.82

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3  +  P4 / (1+r)^4

Where,

r is the required rate of return

Present value = 2.85 / (1+0.095)  +  3.95 / (1+0.095)^2  +    

5.15 / (1+0.095)^3  +  46 / (1+0.095)^4

Present value = $41.8160 rounded off to $41.82

You might be interested in
_____ occurs when the amount of of capital per worker increases
katrin2010 [14]
<span>Gross domestic product </span>occurs when the amount of of capital per worker increases. The answer is letter A
3 0
3 years ago
Read 2 more answers
Suppose that while melissa was on the coast, she also spent two days sightseeing the national parks in the area. to do the sight
Virty [35]
Most of the times when a personnel is sent for an official business trip, transportation and lodging, and sometimes even meals are shouldered by the company. 

In the statement given above, it is noted that the meals that Melissa took are considered personal in nature. Hence, she can deduct this from the business expenses. 
8 0
3 years ago
Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases
gtnhenbr [62]

Answer:

She can deduct the full $120,000. the answer is $120,000.

Explanation:

Therefore, M is following cash basis of accounting , She can deduct the full $120,000 amount. Under cash system, expenses are recorded when cash is paid irrespective of whether it is accrued or not.

5 0
3 years ago
Entrepreneurs affect the economic decisions a country makes by:
xeze [42]

Answer:

D. identifying new ways for people to fulfill their wants and needs

Explanation:

Entrepreneurs start new businesses in society. They are quick to spot and identify needs and wants in the market. Entrepreneurs establish businesses to provide solutions to these needs and want at a profit.

Entrepreneurs use their creativity to come up with new and unique products that offer solutions to society's problems. They innovate better products and ways of offering services that are friendly and more cost-effective. Entrepreneurship goes hand-in-hand with creativity and innovation.

8 0
2 years ago
Why is a brand important to a business?
nydimaria [60]
Good branding increases the value of a company, provides employees with direction and motivation, and makes acquiring new customers easier.
5 0
3 years ago
Other questions:
  • Ben works at a top accounting firm in Salt Lake City and his responsibilities include developing reports for each salesperson, p
    11·1 answer
  • What do i put for salary desired on a job application? should i just ask for minimum wage? go a little higher? shoot really high
    11·1 answer
  • Evaluate the costs and benefits associated with achieving iso 9000/9001 certification status for a specific product- or service-
    10·1 answer
  • When you are actively listening to someone, which of the following can be most helpful in making sure you understood the message
    15·2 answers
  • If a company has three bank accounts for processing payments, what is the minimum number of ledgers it needs?
    7·1 answer
  • What was a result of the Mexican-American War
    14·2 answers
  • Capital structure decisions include determining: Multiple Choice which one of two projects to accept. how to allocate investment
    14·1 answer
  • HELPPP ASAP ECON ?!!!!!!
    11·1 answer
  • Select the correct answer.
    8·1 answer
  • although almost everyone advocates a balanced budget, every spending program and tax break is defended by organized beneficiarie
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!