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Irina-Kira [14]
3 years ago
13

An investor is considering investing in a stock they plan to hold for 2 years. The stock is expected to pay dividends of $1.50 p

er share in each of the 2 years and sell for $20 at the end of two years. If the investor requires an 8% return on this stock, how much should they pay for it using the Dividend Discount Model?
Business
1 answer:
xz_007 [3.2K]3 years ago
3 0

Answer: $19.82

Explanation:

The price the investor would be willing to pay today would be the present value of the dividends and the selling price at the end of 2 years using the required return as the discount rate.

= 1.50 / (1 + 8%)  + 1.50 / (1 + 8%)²   + 20 / (1 + 8%)²

= 1.3888889 + 1.286 + 17.1467764

= $19.82

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The term _____ refers to a private piece of a company's Internet network that is made available to customers and/or vendor partn
Morgarella [4.7K]

Answer:

intranet

Explanation:

The term that is being described in this question is known as the company's intranet. This network is mainly used in order for the company's public tools and information to be accessed by anyone that may need it and has been giving access to it. This facilitates many different aspects and partnerships for the company, as those who have access can quickly and easily grab and use what they need off of the network to easily get things done and solve problems without needing direct involvement from the company.

3 0
3 years ago
The subject property has a total value of $280,000 by the sales comparison approach. A competitive neighborhood nearby has home
True [87]

The value of the subject land is $84,000.

Given,

75,000 / 250,000 = 0.30

280,000 * 0.30 = 84,000

Land value is the measure of the way lots a plot of land is worth, now not counting any buildings but including improvements inclusive of better drainage. when a landowner can pay taxes on her actual property, a part of what is taxed is the fee of the land, in addition to whatever structures sit down atop it.

To measure the price of land use the traditional value approach: Use RS means statistics on prices to calculate the fee of the belongings as though it has been new. Subtract depreciation. The result is an estimate of the fee of the modern structure. Subtract from sale fee to get land cost.

<em />

<em>Your question is incomplete. Please read below to find the missing content.</em>

The subject property has a total value of $280,000 by the sales comparison approach. A competitive neighborhood nearby has home sales with a median value of $250,000, and recent lot sales at $75,000. By allocation, what would be the value of the subject land?

$68,000

$76,000

$84,000

$92,500

Learn more about statistics here: brainly.com/question/4219149

#SPJ4

5 0
2 years ago
Farmers contributed to the problems that led to the Dust Bowl by
solmaris [256]
The answer is D 
(using intensive farming practices that removed protective grasses.)

Hope it helps :) 
8 0
3 years ago
Which of the following statements is false concerning the use of ABC in service industries?
ELEN [110]

Answer:

b. When using ABC for service industries, special methods must be used to identify cost pools and cost drivers due to the unique nature of the services offered.

Explanation:

The cost pool method are the same we should look for activities which add value to the product to provide a more accurate product costing.

In cases of services the company will also determinate activities considering this premise therefore, there is no especial nature to offer to the client.

6 0
3 years ago
Which war is tim o briens ambush based on
ollegr [7]
The Things They Carried is a collection of short stories by Tim O'Brien, about a platoon of American soldiers in the Vietnam War.
3 0
3 years ago
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