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Jlenok [28]
3 years ago
6

Synovec Company is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the gr

owth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a dividend of $2.65, what is the current share price
Business
1 answer:
Sonbull [250]3 years ago
5 0

Answer:

$87.03

Explanation:

Calculation to determine the current share price

First step is to calculate p1

p1= $2.65(1+.30)^3(1+.04) / (.10 - .04)

p1= $2.65(1.30)^3(1.04) / (.10 - .04)

p1=6.054932/.06

p1=100.92

Now let calculate the Current price

p0= [$2.65(1.30) / 1.10] +[$2.65(1.30)^2 / 1.10^2] + [$2.65(1.30)^3 / 1.10^3] + [$100.92/ 1.10^3]

p0=3.1318+4.4782/1.21+5.82205/1.331+$100.92/1.331+

p0=3.1318+3.700992+4.37419+75.82

p0=$87.03

Therefore the current share price is $87.03

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Drag each tile to the correct box.
Vladimir [108]

Answer:

1. Regular schedule.

2. Credibility.

3. Conciseness.

Explanation:

A blog can be defined as an informative or discussion-based website that is updated regularly and published over the internet. The informations that are posted on a blog are usually done chronologically.

Basically, the characteristics of a successful blog are;

1. Regular schedule: creates the need for people to continue reading. Thus, informations posted on blogs are to be updated and made available to the audience at regular intervals.

2. Credibility: proves to readers that this information is trustworthy. You should ensure you always post information that are factual, credible and trustworthy.

3. Conciseness: clearly expresses an idea for readers to understand easily. You should write in a simple and straightforward manner without the use of ambiguous or complex words.

6 0
3 years ago
Manufacturing overhead has an overallocated balance of​ $7,800; raw materials inventory balance is​ $62,900; work in process inv
alexandr1967 [171]

Answer:

C. ​$143,300

Explanation:

The computation of the cost of goods sold is shown below:

= Cost of goods sold + over-allocated balance of manufacturing overhead

= $135,500 + $7,800

= $143,300

To find out the cost of goods sold, we added the cost of goods sold and the over-allocated balance of manufacturing overhead

We ignored the raw material inventory balance, work in process inventory balance, and the finished goods inventory balance as it is not relevant. Hence, we ignored it

7 0
3 years ago
The cpi is a measure of the overall cost of the goods and services bought by.
bekas [8.4K]

The cpi is a measure of the overall cost of the goods and services bought by a typical consumer.

<h3>What is the CPI?</h3>

The consumer price index is a measure of inflation. It measure the price changes of a basket of goods bought by consumers.

CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100

To learn more about, consumer price index, please check: brainly.com/question/26382640

8 0
3 years ago
Enumerate five ways to handle cash​
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Answer:

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Explanation:

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6 0
3 years ago
A bond that pays interest annually yields a rate of return of 7.50 percent. The inflation rate for the same period is 2 percent.
Jlenok [28]

Answer:

5.39%

Explanation:

Given that,

Bond that pays interest annually yields a rate of return = 7.50 percent

Inflation rate for the same period = 2 percent

Real rate = [(1 + nominal rate) ÷ (1 + inflation rate)] - 1

Real rate = [(1 + 0.0750) ÷ (1 + 0.02)] - 1

               = (1.075 ÷ 1.02) - 1

               = 1.0539 - 1

               = 0.0539 or 5.39%

Therefore, the real rate of return on this bond is 5.39%.

7 0
4 years ago
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