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
Minchanka [31]
3 years ago
6

The next dividend payment by ASAP, Inc., will be $2.00 per share. The dividends are anticipated to maintain a 4.00% growth rate,

forever. If ASAP stock currently sells for $14.75 per share, what is the required return?
Business
1 answer:
Dafna11 [192]3 years ago
7 0

Answer:

r = 0.175593 or 17.5593% rounded off to 17.56%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

  • D1 is dividend expected for the next period /year
  • g is the growth rate
  • r is the required rate of return  

Plugging in the values for D1, P0 and g, we can calculate the value of r to be,

14.75 = 2 / (r - 0.04)

14.75 * (r - 0.04)  =  2

14.75r - 0.59  =  2

14.75r = 2 + 0.59

r = 2.59  /  14.75

r = 0.175593 or 17.5593% rounded off to 17.56%

You might be interested in
Internal failure costs are costs incurred​ ________. A. after the company delivers poorminusquality goods or services to custome
Grace [21]

Answer:

c. when the company corrects poorminusquality goods or services before delivery to customers.

Explanation:

Internal failure costs are costs incurred when the company corrects <u>poorminusquality goods or services before delivery to customers.</u>

5 0
3 years ago
1. Analysis How many burritos will the producer supply at the price of $1? In your opinion, what is the reason for that quantity
amm1812

The number of burritos that will be supplied depends on the costs the supplier incurs.

You did not include any charts that can be used to answer this specific question so I will give a general answer.

When a supplier is deciding the price at which to supply a good, they look at:

  • Their costs both fixed and variable
  • The price others are charging
  • The demand for the good

The most important factor is their costs. If in this case, it costs more than $1 to produce a burrito, they will not supply burritos. If their costs are less than a dollar, the number of burritos supplied will then depend on other factors but they will supply some.

In conclusion, if the cost to make the burrito is less than $1, the supplier will supply no burritos but if the cost is less, they will supply based on other factors.

<em>Find out more at brainly.com/question/1908405.</em>

8 0
2 years ago
In the context of electronic communication, _____ involves indirect form of disrespect.
Contact [7]

In the context of electronic communication, <u>passive incivility</u> involves indirect form of disrespect.

Passive incivility involves indirect forms of disrespect through the context of electronic communication which are not replying to emails, using emails for time-sensitive messages, not acknowledging receipt of emails.

Passive incivility has its own impact in an individuals life. As this incivility is indirect there is not much behavior noticed. Thus, here the factor of ignorance plays an important role. For instance, when a person sends a disrespectful email, and so here it is hard to understand tone via email and you can’t see the person's body language.

Hence, passive incivility involves indirect form of disrespect.

To learn more about incivility here:

brainly.com/question/13939392

#SPJ4

3 0
2 years ago
utilizing the models of marketing communication-- tactic used in the one-to-one model which is a more personal level of marketin
Ghella [55]

Direct marketing tactic.

Direct marketing is a method used by companies that directly targets the potential customers they want to reach through things like direct mail, text advertisements, custom ads on social media, email marketing, and direct selling.

6 0
3 years ago
Read 2 more answers
PLEASE HELP!
ycow [4]

Answer:

Identify with Your Goals, Build a Professional Resume, Become Aware of Your Strengths, Assume Full Responsibility for Your Life, Always Raise Your Standards, Brand Yourself, and Network

Explanation:

6 0
3 years ago
Other questions:
  • Moshi and her best friend have phrases they use with each other that have specific meanings. For example, when they’re upset abo
    8·1 answer
  • True or false? cms, not the apc advisory panel or medpac, makes the final ruling for updates and changes to opps.
    14·1 answer
  • Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constan
    13·1 answer
  • Products sold at factory outlets sometimes contain minor flaws<br><br> A.true<br> B.false
    7·2 answers
  • A developer would most likely obtain which of the following types of mortgage on a new subdivision?
    11·1 answer
  • What two words are often associated with centrally planned economies?
    12·2 answers
  • Ceilings are thought to represent the level at which more difficult questions would not be passed.
    5·1 answer
  • In 2018, A Corp. had gross sales of $100,000,000 and business interest income of $20,000,000. A Corp. had deductible business ex
    11·1 answer
  • During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per
    14·1 answer
  • . What type of company would you like to create? Why would you like to create this type of company?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!