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baherus [9]
3 years ago
11

Michael's, Inc., just paid $2.60 to its shareholders as the annual dividend. Simultaneously, the company announced that future d

ividends will be increasing by 5.6 percent. If you require a rate of return of 9.8 percent, how much are you willing to pay today to purchase one share of the company's stock
Business
1 answer:
mixas84 [53]3 years ago
6 0

Answer:

$65.37

Explanation:

Calculation for how much are you willing to pay today to purchase one share of the company's stock

Using this formula

P/0 = D0 ( 1 + g ) / R-g

Let plug in the formula

P/0 = $2.60 (1 + .056) / .098 - .056

P/0 = $2.60 (1 .056)/0.042

P/0=$2.7456/0.042

P/0=$65.37

Therefore how much are you willing to pay today to purchase one share of the company's stock will be $65.37

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You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at hig
lubasha [3.4K]

Answer:

The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation

Explanation:

We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars

\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}  

grow rate 0.07  

required return 0.15

Cuota 175,000

n 7

PV =  866,965.89  

5 0
3 years ago
Natalie is using Monster and CareerBuilder in her job search. These sites are examples of ________.
lorasvet [3.4K]

Answer:

General purpose Job boards

Explanation:

A job board can be straightforwardly defines as a website where employers advertise job openings for job seekers

A general purpose job board as seen in the question can be defined as a website that offers job recruitment services in its entirety.

This means that both employees and employers use the site to search for and advertise job openings to job seekers respectively. Popular job boards include Glassdoor, Linkedin, etc.

Cheers.

3 0
3 years ago
Third-Party Woes. Trudy owed Sam $40 for a book she purchased from him. Trudy mowed Betty's yard for $40 and agreed with Betty t
Blizzard [7]

Answer:

Refer below.

Explanation:

Answer is intended both & Done.

6 0
3 years ago
You are a student at ABC University. You recently read in the school's daily newspaper about a terrific investment opportunity t
Vlada [557]

Answer:

No

Explanation:

An investment that "promises" a 44 percent annual return is most likely a scam, because even the riskiest stocks rarely yield annual returns higher than 10% of the initial investment.

Besides, the option is described as very complicated, and you as a potential investor do not understand it well, which is a very difficult position to be in because it could even lead you to being scammed without realizing.

4 0
3 years ago
Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV?
diamong [38]

Answer:

NPV= $60.52

Explanation:

Giving the following information:

Robbins Inc. is considering a project that has the following cash flow: −$950 $500 $400 $300

Cost of capital= 10.00%

To calculate the net present value we need to use the following formula:

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Cf= cash flow

For example= Year 3: 300/1.10^3= 225.39

NPV= $60.52

8 0
3 years ago
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