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oee [108]
3 years ago
5

Exercise Bicycle Company is expected to pay a dividend in year 1 of $1.20, a dividend in year 2 of $1.50, and a dividend in year

3 of $2.00. After year 3, dividends are expected to grow at the rate of 10% per year. An appropriate required return for the stock is 14%. The stock should be worth ________ today.
A) $33.00
B) $39.86
C) $55.00
D) $66.00
E) $40.68
Business
1 answer:
prisoha [69]3 years ago
3 0

Answer:

E.  $40.68

Explanation:

The computation of the stock worth today is shown below:

= (Dividend in year 1 ÷ 1 + required rate of return^number of years ) + (Dividend in year 2 ÷ 1 + required rate of return^number of years) + (Dividend in year 3 ÷ 1 + required rate of return^number of years)  + (Dividend in year 3 ÷ 1 + required rate of return^number of years) × (1 + growth rate) ÷ (required rate of return - growth rate)

= $1.2 ÷ 1.14 + $1.5 ÷ 1.14^2 + $2 ÷ 1.14^3 + $2 ÷ 1.14^3 × (1 + 10%) ÷ (14%-10%)

= $40.68

We simply applied the above formula

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The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state
horrorfan [7]

Answer:

B) demographic

Explanation:

Demographic segmentation refers to defining (or segmenting) a specific target market based on demographic variables such as gender, age, income, family status, marital status, education, ethnicity, religion, etc.

Since the Alabama Board of Tourism showed "traditional" families, it is obviously targeting families with their adds, and family status is one of the demographic variables.

7 0
3 years ago
_____________ include all of the groups and/or individuals affected by a decision, policy, or operation of a firm or individual.
jeka57 [31]

Answer:

<u>Business ethics.</u>

Explanation:

Business ethics is the set of ethical and moral principles that exist in an organization to regulate its activities, actions and decisions that occur in the organization. The set of ethical values ​​is directly determined by the organizational culture, and should be shared with all employees and organizational levels, as it is the business conduct of the company.

When well-established, corporate ethics ensure and motivate positive behavior, enhance a company's reputation and ensure its safety in the marketplace.

7 0
3 years ago
A buyer agrees to purchase real property by making monthly payments to the seller and then receiving a deed at a later point in
slamgirl [31]

A buyer agrees to purchase real property by making monthly payments to the seller and then receiving a deed at a later point in time. such an agreement is known as a/an purchase-money mortgage.

What is purchase-money mortgage?

A purchase-money mortgage is a mortgage that the seller of home issues to the borrower as part of the sale of the property. This is typically done in circumstances where the buyer is unable to qualify for a mortgage through conventional banking channels. It is also known as seller financing or owner financing. In circumstances when the buyer is taking over, the seller's mortgage, and seller financing makes up the difference between the mortgage's outstanding balance and the property's sales price, a purchase-money mortgage may be employed.

What is one of the disadvantages of the purchase money mortgage?

One drawback is that you are still, and will continue to be, the home's legal owner. In the event that those buyers turn out to be dishonest, you can be left with damaged properties. Another drawback is that it could be challenging to evict or foreclose on a buyer who defaults on a loan.

Learn more about purchase-money mortgage: brainly.com/question/20711780

#SPJ4

7 0
1 year ago
Which of the following is not a reason to chose a community college?
anzhelika [568]

C. Or at least that seems to be the most likely. There are only two similar possible answers which is normally a clue that one of them is wrong and you should be choosing based off how it will benefit you not how it is easier on you.

Hope this helps!

3 0
3 years ago
Read 2 more answers
Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 30 comma 000 units. The inventory on hand at the b
Nadya [2.5K]

Answer:

30,000 units

Explanation:

Budgeted sales is 30,000 units

Beginning inventory = 5000 units

Ending inventory = 5000 units

In order to meet the sales of 30,000 units, the sum of budgeted production and beginning inventory must be at least 30,000 units. However, since the company desires to have 5000 units in ending inventory, this sum must be raised to 35,000 units, which means the production needs to 30,000 units

--> Budgeted production = 30,000 + 5000 - 5000

                                         = 30,000 units

6 0
3 years ago
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