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
Ganezh [65]
3 years ago
7

The Market Place recently announced that it will pay its first annual dividend two years from today. The first dividend will be

$0.50 a share with that amount doubling each year for the following two years. After that, the dividend is expected to increase by 4 percent annually. What is the value of this stock today if the required return is 15 percent?
Business
1 answer:
marta [7]3 years ago
7 0

Answer:

$12.99

Explanation:

Calculation to determine the value of this stock today if the required return is 15 percent

First step is to calculate P4

P4= ($0.50 *2^2*1.04)/(0.15 - 0.04)

P4= $18.91

Now let calculate the value of this stock today (P0)

P0= [$0.50/1.15^2] + [$1/1.15^3] + [($2 + $18.91)/1.15^4]

P0= $12.99

Therefore the value of this stock today if the required return is 15 percent will be $12.99

You might be interested in
A multiconcept restaurant incorporates two or more restaurants, typically chains, under one roof. Sharing facilities reduces cos
krek1111 [17]

Answer: The Multiconcept restaurant is beneficial to both restaurant chains

Explanation:

If they share resources then they are saving 30% in fixed costs even though they are losing 20% in sales.

If the losses in sales are subtracted from the savings in fixed costs, it means that both Taco Bell and KFC are benefitting by 10%.

This shows that the decision to open a shared facility versus two separate facilities is beneficial to both restaurants on a net benefits basis as the savings in fixed costs from sharing facilities outweighs the losses in sales probably resulting from not offering a full menu.

8 0
3 years ago
Barb bought a house with 20% down and the rest financed by a 30-year mortgage with monthly payments calculated at a nominal annu
lina2011 [118]

Answer:

$282,706

Explanation:

Calculation to Determine the purchase price of the house

First step

In order for us to determine the purchase price of the house we would be using TVM Calculation to find the PMT

Hence,

PMT =

PV = 200,000

FV = 0

N = 240

I = 0.084/12

Thus,PMT = $1,723.01

The Second step will be to Calculate the Loan Amount Using TVM Calculation,

PV =

FV = 0

PMT = -1,723.01

N = 360

I = 0.084/12

Thus, PV = $226,164.98

Last step is to Determine the purchase price of the house

Using this formula

Purchase price=PV/(100%-20% down)

Let plug in the formula

Purchase price =226,164.98/(0.80)

Purchase price = $282,706

Therefore the purchase price of the house will be $282,706

5 0
3 years ago
The Cedian government believes that its citizens should have complete freedom in their economic and political pursuits, and the
Dvinal [7]

Answer:

The correct answer is letter "C": individualism.

Explanation:

Individualism is an economic idea that promotes less government intervention. In this economic scenario, individuals are the main characters influencing the fluctuations of the market based on demand and supply principles. Individualism is in favor of private ownership and self over collective interest.

7 0
3 years ago
a corporation is a complex business compared to a sole . the process of filing all applicable legal documents to register a corp
Serggg [28]

A corporation is a complicated commercial enterprise as compared to a sole. the procedure of filing all relevant legal documents to sign in a business enterprise with the authorities is referred to as Taxation.

A corporation conducts enterprise, realizes net earnings or loss, will pay taxes, and distributes profits to shareholders. The earnings of an enterprise are taxed to the corporation while earned and then are taxed to the shareholders when allotted as dividends.

A corporation is a popular connection with a business whereas a business enterprise is a reference to a particular sort of commercial enterprise entity. An agency is owned by its shareholders while a business enterprise may be owned both by the enterprise proprietor in full (sole proprietorship), numerous people (partnership), or others (shareholders).

Learn more about corporation  here:

brainly.com/question/25787830

#SPJ4

5 0
2 years ago
You receive a ​$11 comma 000 check from your grandparents for graduation. You decide to save it toward a down payment on a house
xxTIMURxx [149]

Answer:

  • <u>7 years and 9 months.</u>

Explanation:

You can calculate the number of years needed to the <em>$11,000 grow to $22,000</em>, using the compound interest formula, with:

  • Present value or investment: <em>$11,000</em>
  • APR:<em> 9%</em>
  • Assume monthly compound interest: r = 9%/12 = 0.09/12 = 0.0075
  • Future value: <em>$22,000</em>

The equation is:

        \text{Future value}=Investment\times (1+r)^t

Where r is the monthly compound interest (r = 0.0075) and t is the number of months.

Substitute and solve for t:

       \$22,000=\$11,000\times (1+0.0075)^t

       2=(1.0075)^t\\\\t=\dfrac{\log 2}{\log 1.0075}\approx92.8months\\\\\\t=93/12=7.75years=7years+9months

5 0
4 years ago
Other questions:
  • A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease. Holding everythi
    11·1 answer
  • Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to
    14·1 answer
  • In California, Arthur wants to personally place business with RTS Insurance Company who is a nonadmitted carrier. The only way A
    6·1 answer
  • Xanat is grief-stricken after the death of her mother. Consequently, her productivity at work is suffering. Humberto, her superv
    13·1 answer
  • Many cities in southeast Michigan are struggling with financial problems due to current economic conditions. At the same time, s
    5·1 answer
  • According to a study conducted by an​ organization, the proportion of americans who were afraid to fly in 2006 was 0.10. a rando
    8·1 answer
  • 20 points :)
    12·2 answers
  • You run a small community or country and your primary output is the growing of wheat and the sewing of socks. You are able to pr
    11·1 answer
  • The development group in a​ company's IS department is staffed primarily by​ programmers, test​ engineers, technical​ writers, a
    15·1 answer
  • Almost ___________________ percent of U.S. banks are FDIC members.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!