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
sergey [27]
2 years ago
14

The Fish House is expected to pay annual dividends of $1.23 and $1.25 at the end of the next two years, respectively. After that

, the company expects to pay a constant dividend of $1.35 a share. What is the value of this stock at a required return of 16.4 percent?a. $6.07b. $8.55c. $8.05d. $11.08e. $8.23
Business
1 answer:
lorasvet [3.4K]2 years ago
4 0

Answer:

c. $8.05

Explanation:

Calculation to determine What is the value of this stock at a required return of 16.4 percent

First step is to calculate the P2

P2 = ($1.35/.164)

P2= $8.23

Now let calculate the value of the stock

P0 = [$1.23 /1.164] + [($1.25 + 8.23)/1.164^2]

P0 = $8.05

Therefore the value of this stock at a required return of 16.4 percent is $8.05

You might be interested in
people keep spending units of a particular resource on a want until their marginal benefit is ____ their marginal cost. A. Decre
weeeeeb [17]
B greater than

this is the answer to ur question
3 0
3 years ago
Read 2 more answers
Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in y
Airida [17]

Answer:

225,000 shares

Explanation:

A company's shares outstanding refers to the total number of shares investors currently own.

Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in year 2.

In year 3, Beck purchased 75,000 shares of its common stock and held it in Treasury.

At December 31, year 3, the number of shares of Beck's common stock were outstanding is

200,000 shares in year 1

100,000 shares in year 2

Total Common Stock = 300,000

less: Treasury Stock of    75,000

Outstanding Stock = 225,000 shares

5 0
3 years ago
Judith puts $5000 into an investment account with interest compounded continuously. which approximate annual rate is needed for
Oxana [17]
In the question, continuously should be annually.

Solution:
Applicable formula is;
A = P(1+r)^n

Where;
A = Total amount after 30 years = $9,110
P = Amount invested = $5,000
r = Annual interest rate in decimals
n = Number of years = 30

Substituting;
9110 = 5000(1+r)^30
9110/5000 = (1+r)^30
1.822 = (1+r)^30
Taking natural logs on both sides;
ln (1.822) = 30 ln (1+r)
0.5999 = 30 ln (1+r)
0.5999/30 = ln (1+r)
0.019998 = ln (1+r)
Taking exponents on both sides
e^0.019998 = 1+r
1.0202 = 1+r
r = 1.0202 -1 = 0.0202 =2.02%

Therefore, annual interest rate should be 2.02%.
3 0
3 years ago
Toby and Keith are planning to create and jointly own a company that will license their patented technology solely for royalties
Fantom [35]

Answer: Limited liability company

Explanation:

In such a structure the owners and the firm are considered separate. The owners in a LLC could not be held personally liable for the debts and liabilities of their company.

The companies have the limited liability feature of the corporations while the profit distribution method depicts partnership structure.

In the given case, Toby and Keith wants to distribute profit among them and also do not want to raise any outside capital. Also they want limited liability in their organisation.

Hence a Limited liability company is an appropriate choice for them.

3 0
3 years ago
]To estimate the percentage of defects in a recent manufacturing​ batch, a quality control manager at Daimler minus Chrysler sel
krek1111 [17]

Answer:

Answer is option A, i.e. systematic sampling.

Explanation:

Systematic sampling is the type of probability sampling method of selection of samples out of the given group of homogenous nature. In this method, every Kth sample is selected until the required amount is obtained. Here, Chrysler selects every 16th van until he is successful in obtaining the 80 vans. Thus, Chrysler is using a systematic sampling method here.

3 0
3 years ago
Other questions:
  • If new technologies reduce the marginal cost of abatement​ (MCA), which method of regulating emissions will result in the larges
    7·1 answer
  • Which act outlaws injunctions for nonviolent labor union activities and makes yellow-dog contracts unenforceable?
    5·1 answer
  • Caroline is a manager in a medium-sized logistics company, Wings, Inc. She always makes it a point to have long conversations wi
    12·2 answers
  • Which of the following would be an example of a top down innovation? a. Lowering prices and features of existing products to mee
    10·1 answer
  • Gunnar, age 12, is paid $8 a week by his parents, bjorn and anna, to clean his room, fold and put away his laundry, take out the
    5·2 answers
  • In order for Hope Springs to effectively sell its bottled water, the company needs to be effective at ________, which is the pra
    15·1 answer
  • it is a good idea to accept a promotion interview even if you're not interested in the promotion because, ________. ​
    7·1 answer
  • Josh is a technological expert whose work with advanced broadband systems has made him one of the most high-profile figures at T
    10·1 answer
  • Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amoun
    7·1 answer
  • On January 1, 2021, Legion Company sold $260,000 of 8% ten-year bonds. Interest is payable semiannually on June 30 and December
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!