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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

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While JIT systems have many benefits, they:______.
Fiesta28 [93]

Answer:

Option A

Make the logistics function more complicated

Explanation:

The JIT inventory system refers to the Just In Time inventory system.

The just-in-time (JIT) inventory system is a management strategy where warehousing of parts is minimum. Rather, the raw material supply is aligned accurately with the production schedule of a particular good.

For example, in car production, the various car parts are supplied by various manufacturers at just the right time so they can be assembled to make up the car in the assembly line. The car assembly companies may not necessarily have to store raw materials in their ware house since the raw materials arrive "Just in time".

However, aligning the supply of raw materials accurately with production time, is a complicated task especially when a lot of manufacturers are involved and can need to plant down time if care is not taken. This makes the logistics function more complicated.

5 0
3 years ago
Read 2 more answers
What are some reasons why the budget deficit and non budgeted spending have been adding more than $500 billion to the national d
bogdanovich [222]
There are numerous reasons, things like war, immigration, increased poverty, or things like unpredictable natural disasters. When a hurricane strikes and destroys entire cities and housing it has to be fixed quickly and that is spending that was not planned since you can't expect things like that. Wars often cost much more than what was planned because bad things happen and they need to be fixed. Immigration can lead to an increase in social welfare spending since not all immigrants find a job quickly and establish themselves in the society.
6 0
3 years ago
Whats considered a fixed assest
Igoryamba

Answer:

see below

Explanation:

Fixed assets are valuable items that cannot be converted into cash quickly. They are assets not meant for sale or consumption up in the current financial year.

Fixed assets are tangible or physical assets used by businesses in the productions or provision of services. They provide long term financial benefits to a business. Fixed assets have a useful life of more than one year. Land, buildings, motor vehicles, plant, and equipment are examples of fixed assets.

3 0
3 years ago
Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 950 2 1,180 3 1,400 4 2,140
Anon25 [30]

Answer:

$6,225.08

Explanation:

The computation of the future value of these cash flows in year 4 is shown below:

= Year 1 cash flow × (1 + interest rate)^year + Year 2 cash flow × (1 + interest rate)^year + Year 3 cash flow × (1 + interest rate)^year + Year 4 cash flow × (1 + interest rate)^year

= $950 × 1.08^3 + $1,180 × 1.08^2 + $1,400 × 1.08^1 + $2,140

= $950 × 1.259712  +  $1,180 × 1.1664  + $1,400 × 1.08 + $2,140

= $1,196.7264  + $1,376.352  + $1,512  + $2,140

= $6,225.08

3 0
3 years ago
PLEASEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE HELPPPPPPPPPPPP 20 pts
jeka57 [31]

Answer:

Is there any multiple choice?

5 0
3 years ago
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