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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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The united states' first large business bureaucracies began within which industry?
Morgarella [4.7K]
The United States' first large business bureaucracies began within which industry? A bureaucracy is a large organization of appointed officials. These members are chosen to represent the group at large until otherwise removed. Patronage is the first bureaucracy that began in 1789 that Thomas Jefferson served on.
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3 years ago
The san francisco giants sell tickets based on​ ____________, where the prices often change based on demand and other variables.
pychu [463]
The San Francisco Giants sell tickets based on <u>dynamic pricing</u>, <span>where the prices often change based on demand and other variables.
This means that these tickets are based on how much a regular customer is willing to pay. There is an approximate price that seems reasonable for customers, and it can fluctuate, but still it is the best way to buy or sell something and profit after it. </span>
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3 years ago
In their simplest form, bonds are pure ________. a) debt b) equity c) hybrid security d) current assets
melomori [17]

In their simplest form, bonds are pure a) debt.

<h3>What are bonds?</h3>
  • A bond may be a debt security, almost like an IOU.
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  • When you buy a bond, you're lending to the issuer, which can be a government, municipality, or corporation.
  • In return, the issuer promises to pay you a specified rate of interest during the lifetime of the bond and to repay the principal, also referred to as face value or par value of the bond, when it "matures," or comes due after a group period of time.
<h3>What sorts of bonds are there?</h3>

The main types of bonds are:

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To learn more about bonds: brainly.com/question/17405470

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5 0
1 year ago
You’ve been called in to consult with a small startup company that needs advice on how to set up its computer systems and networ
Ilia_Sergeevich [38]

Answer:

focus on a client-server model

Explanation:

In this scenario, the best advice that can be given would be to focus on a client-server model. Since almost all of the applications that will be used by the employees are server-based it would be best to focus on only implementing the minimum necessary hardware for the 30 employees. So much so that they are able to access the server correctly but without adding excessive hardware power that would simply be overkill. Since the company already has all the necessary LAN switches it would be fairly simple to connect all of these machines together and 50 Mbps is more than enough for data transfer.

7 0
4 years ago
A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be
pashok25 [27]

Answer:

     NPV  =$ 60,311.80

Explanation:

<em>The net present value (NPV) of a project is the present value of cash inflow  less the present value of cash outflow of the project.</em>

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

                                                  0                  1                   2                 3          

Operating cash flow                                136,000     136,000    136,000

Initial cost                              (274,000)

Working capital                     (61,000 )                                          61,000

Salvage value                        <u>               </u>    <u>             </u>      <u>           </u>      1<u>5000  </u>              

Net cashflow                     <u> (335,000)  136,000      136,000      212,000.</u>

PV  inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

       =  395,311.80

NPV =395,311.80 -335,000

       =$ 60,311.80

3 0
3 years ago
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