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
adoni [48]
3 years ago
15

Dividends at FSL are expected grow at a rate of negative 5.4% per year (the dividends are getting smaller). The stock just paid

a dividend of $3.93 per share, and investors require a return of 13% to invest in the company. What is the expected price of the stock next year?
Business
1 answer:
Crank3 years ago
5 0

Answer:

$21.37

Explanation:

g = -5.4%

D0 = $3.93

D1 = D0 (1+g)

D1 = 3.93*(1-0.054)

D1 = 3.93*0.946

D1 = 3.71778

Investors require a return (ke) of 12%

P0 = D1/(ke - g)

P0 = 3.71778 / (12% - (-5.4%)

P0 = 3.71778 / (12% + 5.4%)

P0 = 3.71778 / 17.4%

P0 = 3.71778 / 0.174

P0 = 21.3665517

P0 = $21.37

So, the expected price of the stock next year is $21.37.

You might be interested in
During the current year, Morgan, Inc., had net income of $657,000. Morgan also recorded $203,000 in deprecation expense and had
Paraphin [41]

Answer:

$823,000

Explanation:

To determine the net cash provided by operating activities using the indirect method we can use the following formula:

net cash flow = net income + depreciation expense - accounts receivable increase + inventory decrease - accounts payable decrease

net cash flow = $657,000 + $203,000 - $28,000 + $12,000 - $21,000 = $823,000

If accounts receivable decreased, then it would be added.

If inventories increased, then it would be subtracted.

If accounts payable increased, then it would be added.

6 0
3 years ago
Which of the following is true regarding GASB's definition of the financial reporting entity?
Mashutka [201]

Answer:

d. All of the above are true

Explanation:

According to my research on the GASB's definition of the financial reporting entity, I can say that based on the information provided by the GASB website, all of the above statements provided are true. They can consists of many components such as joint ventures or jointly governed organizations, governments can be general purpose governments or special-purpose governments, and Blending is used.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
A nation has a GDP of 685m. It has a growth rate of 4%. How long will it take the nations GDP to double?
katovenus [111]
<span>The Rule of 70 can be used to determine the length of time it would take for a variable to double. In this case, using a growth rate of 4%, we can divide 70/4 to find that it would take 17.5 years for the GDP of this nation to approximately double.</span>
7 0
3 years ago
The _ is the financial statement describing a firms yearly cash receipts and cash payments
erastova [34]
Statement of cash flows....
6 0
3 years ago
Comprehensive coverage under the Personal Auto Policy pays for damage to the insured auto caused by all of the following except:
Maksim231197 [3]

Answer:

c. nuclear accident

Explanation:

Personal Auto Policy is the most common policy for the insured. However, Nuclear accident is not covered under this policy. The policy covers hail, collision with animals and birds as well as falling tree branches.

5 0
3 years ago
Other questions:
  • The price of a new computer game has demand of 3,000 units at $50 and 2,500 units at $60. Calculate the Price Elasticity of Dema
    14·1 answer
  • Which management perspective was shared by all in attendance at the dinner?
    8·1 answer
  • Analysts say visitors stay an average of how many seconds on any webpage?
    5·1 answer
  • Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela
    13·1 answer
  • True or False: Risk is a work value that would fit a police officer.
    8·2 answers
  • Laura's father, Albert, gave Laura a gift of 500 shares of Liba Corporation common stock in 2017. Albert's basis for the Liba st
    13·1 answer
  • A hospital data entry professional is part of what career area?
    12·2 answers
  • A question that is used as the focus of a PBL project that communicates the challenge you must solve is called __________.
    15·1 answer
  • What is the ground clearance of the Nissan GT-R?
    15·1 answer
  • Boston consulting group (bgg) believes that the use of advanced robotics in manufacturing will?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!