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Feliz [49]
2 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]2 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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THE FOX MOUNTAIN COUNTRY Club was a popular location for wed dings in a midsized town. In the winter, the country club offered a
Lisa [10]

Answer:

어매ㅐ자ㅓ어추채ㅐ

Explanation:

야맥ㄷㅇ토토뉴댜재져쳐유ㅑ초쥬탸서려젇 터져갸처쥬랴텨뉴여쳐어유야쥬야융

5 0
3 years ago
If D 0 = $1.75, g (which is constant) = 3.6%, and P 0 = $32.00, what is the stock's expected total return for the coming year?
Contact [7]

Answer:

Stock's expected total return for the coming year is 9.27%

Explanation:

P0 = D0(1+g) / (r-g)

$32 = 1.75 * (1 + 3.6%) / (r - 3.6%)

32 = 1.75 * (1.036) / (r - 0.036)

32 = 1.813 / (r - 0.036)

32*(r - 0.036) = 1.813

32r - 1.152 = 1.813

32r = 1.813 + 1.152

32r = 2.965

r = 2.965 / 32

r = 0.09265625

r = 9.265625%

r = 9.27%

6 0
3 years ago
It is May 1. The quoted price of a bond with a 30/360 day count and 12% per annum coupon in the United States is 105. It has a f
larisa86 [58]

Answer: option A is the correct option.

Cash price = 106.00

Explanation:

Cash price = quoted price + accrued interest

CP = Qp + I ..........................(1)

Quoted price = 105

Accrued interest = ?

STEP1 : FIND INTEREST;

Because the interest is not compounded

Accrued Interest = PRT ..........(2)

P= principal ( the face value)

R = rate per annum

T= period

P= 100

Since the period of payment of the face value was from April 1 to October 1 that means the period is 180 days, that means the 12% rate per annum (360 days), should be 6% rate per halve annum (180 days).

Therefore;

R = 6%

Since rate is applied every 30 days of the period which is 30/360 for an annum. Our period is 180 that's means rate will be applied to 30/180.

Therefore;

T = 30/180

Therefore using equation 2

I = 100 × 6% × (30/180) = 1.00

Accrued interest= 1.00

STEP 2: FIND CASH PRICE

using equation 1

Cash price = 105 + 1.00 = 106.00

4 0
3 years ago
What are the main goverment restrictions on sole proprietorships
Dima020 [189]
The main government restrictions on sole proprietorship are as follows:
1.The zoning laws that are put in place specifies the areas of a city or a country where various types of business activities can be pursued.
2. Sole proprietorship has to obtain city or country license before they can operate their businesses.
3. Professional sole proprietorships such as doctors must be licensed by the state.
5 0
3 years ago
Soffia Inc. manufactures a moisturizing soap with anti-ultraviolet properties, which is sold under the brand name DewMist. The c
Lerok [7]

Answer:

Multibranding strategy

Explanation:

Multibranding strategy can be defined as a type of strategy in which a company gives its product a different brand name. It involves a producer selling different brands under the same product segment.

In Multibranding strategy there is no space for other competitors in the market. This strategy also strengthens the influence of these various products in the market.

A Multibranding strategy can lead to a great loss if it is not properly handled by the management of the organisation.

8 0
3 years ago
Read 2 more answers
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