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
Creative Canopies (CC) is a manufacturer of flexible canopies for athletic facilities. CC has contracts with 3 universities to i
ElenaW [278]

Answer:

Creative Canopies (CC)

With gross profits of $10,000, the least profitable is:

B. UCLA

Explanation:

a) Maintenance Costs of Canopies:

Support Activity      Driver                    Cost per Driver Unit

Major refinishes:    Hours on jobs                 $55

Minor touchups:     Number of visits          $400

Communication:     Number of calls             $25

b) Customer Data:

University    Hours      major Visits    minor Calls=

USD             100               7                     12

USC              90               5                     15

UCLA           120              6                      9

c) Calculation of the Cost of Canopy Maintenance for each customer:

University  Hours  Major   Minor  Major          Minor     Commun-  Total

                              Visits   Calls    Refinishes  Touchups  ication  

USD           100         7         12       $5,500        $2,800      $300    $8,600  

USC            90         5         15       $4,950        $2,000      $375    $7,325

UCLA         120        6          9      $6,600        $2,400      $225    $9,225

d) Calculation of net income from each customer:

University   Gross Profit         Maintenance Cost        Net Income

USD               $10,000                 $8,600                          $1,600

USC               $10,000                 $7,325                         $2,675

UCLA            $10,000                 $9,225                            $775

8 0
3 years ago
At​ year-end, Sample has cash of $ 14,000​, current accounts receivable of $ 70,000​, merchandise inventory of $ 42,000​, and pr
Delicious77 [7]

Answer:

Days to collect receivables = 26 days

Explanation:

At the start Accounts Receivable = $10,000

Ending Accounts Receivable = $70,000

Credit Sales = $560,000

Average Accounts Receivable = ($10,000 + $70,000) / 2

Average Accounts Receivable = $40,000

Accounts Receivable Turnover = Credit Sales / Average Accounts Receivable

Accounts Receivable Turnover = $560,000 / $40,000

Accounts Receivable Turnover = 14

Days to collect receivables = 365 / Accounts Receivable Turnover

Days to collect receivables = 365 / 14

Days to collect receivables = 26 days

7 0
3 years ago
What are the pros and con's for the arrive alive campaign?
Elena-2011 [213]
The Arrive Alive campaign was launched to prevent road accidents or at least lessen the instances of accidents due to drunk driving and reckless driving.

The advantages of this campaign are:

1. It promotes awareness among drivers to drive safely. 
2. It educates drivers on the rules and safe acts when on the road. 

The disadvantages of this campaign are:

1. It does not completely eliminate the risk of accidents due to drunk and reckless driving. It merely 'educates' the drivers about safe acts. 
2. It still allows the drivers to drink and drive but at 'allowable alcohol level' which does not help at all.

In the end, the Arrive Alive campaign failed. 
3 0
3 years ago
Read 2 more answers
W gave w's age as 50 when w purchased a life policy. at the time of w's death seven years later, the company discovered w's true
kvasek [131]

The normal procedure under the misstatement of age provision in regard to the payment of the death claim is that the procedure would be reduced based on the premium in which whatever it would have been if this has been purchased at the age of fifty nine years old.

<span />
3 0
3 years ago
Read 2 more answers
Henry’s original plan was to visit Duque de Caxias, Campinas, Rio de Janeiro, and Guarulhos. However, he only has R$699 to spend
Dennis_Churaev [7]

The swap that should be the cheapest swap for Henry should be to Replace Duque de Caxias with Fortaleza.

  • The answer to this question is option B.

<h3>Why Henry has to make this swap.</h3>

The reason why this swap is the best is because visiting Fortaleza is more within the budget that he has.

If he sticks to the original plan, he would be needing more funds for the trip that he intends to make.

Read more on Henry's trip here:

brainly.com/question/3804099?referrer=searchResults

5 0
2 years ago
Other questions:
  • You own 25 percent of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all-e
    11·1 answer
  • The following is the income statement for the period ending December 31, Year 1, for Manatee Construction Company:
    11·1 answer
  • What does 4. Financial management means
    11·2 answers
  • Which $1,000 bond has the higher yield to maturity, a twenty-years bond selling for $800 with a current yield of 15% or a one-ye
    5·1 answer
  • Jared told his boss, Maggie, that he is going to start training for the upcoming marathon to be healthier and to have more energ
    14·1 answer
  • You are offered a chance to buy an asset for $4,500 that is expected to produce cash flows of $750 at the end of year 1, $1,000
    8·1 answer
  • Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of year 3, and $1,300 at the end
    15·1 answer
  • Finance is best defined as
    14·1 answer
  • Rock industries allocates manufacturing overhead at a predetermined rate of 160% of direct labor cost. Any overallocated or unde
    12·1 answer
  • You have three separate accounts with your bank that you can manipulate with online banking. Account "A" is a
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!