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Feliz [49]
3 years ago
9

17. Wislow Brothers common stock sells for $30 a share and pays an annual dividend that increases by 4 percent annually forever.

The market rate of return on this stock is 10 percent. What is the closest value to the amount of the dividend in two years
Business
1 answer:
Neko [114]3 years ago
6 0

Answer:

$1.95

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

30 = d / 0.1 - 0.04

d = 30 x 0.06 = 1.8

growth in 2 years = 1.8 x (1.04^2) = $1.95

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emmasim [6.3K]

Answer: (B) Technology change

Explanation:

 The technology change is one of the efficient process in environment as it helps in developing various types of technology for increase the accuracy and also the efficiency of the various types of products and the services.

 We can efficiently change the technology result in the output without change the input as it also improves the overall output of the products. It is also known as the technological development as it helps in manage the overall process of innovation, diffusion and the invention.  

 According to the given question, the McDonald's and the Taco bell are try to adding the kiosks in their restaurants so that it helps the customers in placing the orders.

 Therefore, Option (B) is correct answer.

4 0
3 years ago
Explain briefly why manufacturing offers so many careers in such varied fields.
Ierofanga [76]

Answer: Many sections to manufacturing

Explanation: In manufacturing, they're many processes it takes to make the product depending on what you are manufacturing and it is people who do these jobs, there are people to make the containers the ones that make the content and the print on the product e.t.c

In industries, they are over 500 to 1000 workers in them and it is steadily depleting due to the advancement of technology

5 0
3 years ago
Read 2 more answers
Pharoah, Inc., paid a dividend of $4.25 last year. The company's management does not expect to increase its dividend in the fore
Maslowich

Answer:

The current value of the stock is $3.63

Explanation:

The company's management does not expect to increase its dividend in the foreseeable future. It means that the dividend for this years (to be received after 1 years from today) is also $4.24  

Future value (FV): $4.25

Rate: 17%

Present value (PV) = FV/(1+rate)^tenor

= 4.25/(1+17%) = $3.63

5 0
3 years ago
Determine whether each of the following transactions contributes to the calculation of GDP as total spending, then, identify the
scoray [572]

Answer:

Michelin sells tires to Nissan to install on their 2019 Sentras that are produced and sold in the United States.

  • Not included in the GDP since tires are a component of new cars, they are not a final product.

American consumers import $3.5 billion of woven apparel from Bangladesh.

  • Included in the GDP as imports, which reduce total net exports (NX).

The U.S. government spent $523.1 billion on national defense.

  • Included in the GDP as government spending (G).

Entrepreneur and Shark Tank investor Barbara Corcoran purchases 15% of Cousins Maine Lobster food truck company for $55,000.

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8 0
3 years ago
Marathon Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damage
V125BC [204]

Answer: Marathon should repair the units since an income of $12000 will be gotten.

Explanation:

Based on the information given, the following can be deduced:

Revenue when repaired = 10000 × $5 = $50000

Revenue if sold without repair = 10000 × $2 = $20000

Incremental revenue = $50000 - $20000 = $30000

Cost to repair = $18000

Incremental be Income = $30000 - $18000 = $12000

Therefore, Marathon should repair the units since an income of $12000 will be gotten.

8 0
3 years ago
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