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NISA [10]
3 years ago
7

he next dividend payment by Savitz, Inc., will be $5.05 per share. The dividends are anticipated to maintain a growth rate of 5

percent forever. If the stock currently sells for $43 per share, what is the required return
Business
1 answer:
VashaNatasha [74]3 years ago
3 0

Answer:

16.74%

Explanation:

Current Price = Expected Dividend / (Required Return - Growth Rate)

Required Return = (Expected Dividend / Current Price) + Growth rate

Required Return = ($5.05 / $43) + 5%

Required Return = 0.1174419 + 0.05

Required Return = 0.1674419

Required Return = 16.74%

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You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $28,000, $32,000, $66,000,
larisa86 [58]

Answer:

$202,137.90  

Explanation:

Year Annual payment Discount factor  Present value  

1 $28,000          0.965250965 $27,027.03  

2 $32,000          0.931709426         $29,814.70  

3 $66,000          0.899333423         $59,356.01  

4 $99,000          0.868082454 $85,940.16

Total present value                                         $202,137.90  

The discount factor should be computed by  

= 1 ÷ (1 + interest rate)^years  

where,  

rate is 3.6%  

Year = 0,1,2,3,4 and so on  

6 0
3 years ago
What are some rapidly growing employment opportunities? What types of jobs are declining in numbers? How can you predict what jo
wolverine [178]

Digital Technology and AI boom has completely transformed the job market and its effects have by now stabilized.

Explanation:

Manual jobs in general are declining as automate work becomes more affordable.  This means that working in factories and day to day menial labor goes less in demand.

<u>Jobs in the AI, robotics and engineering sectors have been on a boom but as AI progresses and more and more information goes digital, Linguistics has also come into play with programming.</u>

These jobs are only going to be more in demand as the time goes on.

7 0
4 years ago
A leftward shift in the supply curve for a good may be caused by any of the following except A. consumer expectation of an incre
nydimaria [60]

Answer: A. consumer expectation of an increase in their future income.

Explanation:

The supply curve is simply a graph that shows the relationship that is between the price of a particular good and the amount of quantity that is supplied.

A leftward shift in the supply curve for a good simply means that less of that good is supplied. All tye options will cause less of the goods to be supplied except consumer expectation of an increase in their future income.

3 0
4 years ago
Read 2 more answers
A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.
beks73 [17]

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the <em>"consumer surplus"</em>. And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

7 0
3 years ago
The following data were taken from Alvarado Company's balance sheet: Dec. 31, 2019 Dec. 31, 2018 Total liabilities $4,085,000 $2
Rudik [331]

Answer:

Dec. 31, 2019 Ratio to Liabilities to Owner's Equity = 0.95

Dec. 31, 2018 Ratio to Liabilities to Owner's Equity = 0.80

Explanation:

given data

Dec. 31, 2019

total liabilities = $4,085,000

Total owner's equity = 4,300,000

Dec. 31, 2018

total liabilities = $2,880,000

Total owner's equity =  3,600,000

to find out

Compute the ratio of liabilities to owner's equity

solution

we know that here Ratio to Liabilities to Owner's Equity is Total Liabilities divide Total Owner's Equity      ....................1

so

now put here value for both 2018 and 2019 from equation 1

so for Dec. 31, 2019

Ratio to Liabilities to Owner's Equity = \frac{4085000}{4300000}

Ratio to Liabilities to Owner's Equity = 0.95

and for Dec. 31, 2018

Ratio to Liabilities to Owner's Equity = \frac{2880000}{3600000}

Ratio to Liabilities to Owner's Equity = 0.80

6 0
3 years ago
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