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Vikentia [17]
3 years ago
10

Assume that a stock is expected to pay dividends at the end of Year 1 and Year 2 of $1.25 and $1.56, respectively. Dividends are

expected to grow at a 5% rate thereafter. Assuming that ke is 11%, the value of the stock is closest to:___.
A. $22.3.B. $23.42.C. $24.55.
Business
1 answer:
Setler [38]3 years ago
4 0

Answer:

C. $24.55

Explanation:

Calculation to determine what the value of the stock is closest to:

Value of the stock =($1.25 / 1.11) + [1.56/ (0.11 -0.05)] / 1.11

Value of the stock =[1.126126+(1.56/0.06)]/1.11

Value of the stock = $24.55.

Therefore the value of the stock is closest to:$24.55

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Answer:

The correct answer is letter "D": sales less variable production, variable selling, and variable administrative expenses.

Explanation:

Contribution Margin is the difference between the revenue from sales and variable costs. This helps a company to analyze the profitability of individual products by calculating how earnings are influenced by sales. In other words, the contribution margin represents the portion of revenues that are used to cover fixed expenses such as administrative staff payments.

8 0
3 years ago
During 2019, John was the chief executive officer and a shareholder of Maze, Inc. He owned 60% of the outstanding stock of Maze.
harina [27]

Answer:

Throughout the clarification segment elsewhere here, the definition of the concern is outlined.

Explanation:

  • Yes, Mr. John becomes qualified to something like a bad debt benefit for the balance including its interest made on either the loan.
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8 0
3 years ago
Management of Blossom, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, a
spayn [35]

Answer:

Followsare the solution to this question:

Explanation:

using formula:

\text{Recent dividend} = \text{Dividend of the previous year} \times (1+\text{growth rate})^{\text{(current year)}}    \\\\\text{Total value  = dividend + horizon value}

\text{Horizon value}= \frac{\text{current year 3} \times \text{(1+long-term growth rate)}}{\text{(Long-run growth rate required)}}

\text{Reduced price factor}=(1 +\text{Required rate})^\text{corresponding time}

\text{Value discounted} =\frac{ \text{total value}}{ \text{factor of discount}}

please find solution file:

6 0
3 years ago
Which is true of an enterprise resource planning (ERP) system?
Evgesh-ka [11]

Answer:

c. It has compatibility problems with legacy systems

Explanation:

Enterprise Resource Planning possess issues with the legacy systems and that is completely a compatibility issue because of technological advancement internally in the organization that creates the same as well.

7 0
4 years ago
Dorrance, the coach of the UNC women’s soccer team, has an eye for recruiting outstanding talent. In business language, this is
My name is Ann [436]

Answer: Selective hiring

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In the given case, Dorrance wants to recruit someone with excellent skills in soccer, thus we can conclude that she is doing selective hiring.

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3 years ago
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