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frez [133]
3 years ago
7

A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, an

d if equity investors require a 19 percent rate of return, what is the fair price of the stock
Business
1 answer:
Monica [59]3 years ago
5 0

Answer:

$57.50

Explanation:

fair value = dividend(1 + growth rate) / required rate of return - long run growth rate

$2(1.15) / 0.19 - 0.15 = $57.50

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IgorLugansk [536]
In the scenario given above, Tim is engaging in OBSERVATION RESEARCH. Observation research, also called field research is a type of non-experimental research in which a researcher is observing an ongoing natural behaviour that is occurring in a natural setting. The result of analysis of this behaviour can help a company to serve its customers better. 
3 0
4 years ago
What is an example of the kinds of choices that person might have to make because of scarcity?
Nostrana [21]

Answer: Sharing food their homes giving out water and helping the sick as best as they can.

Explanation:

6 0
3 years ago
Nenn Co.'s allowance for uncollectible accounts was $180,000 at the end of 2011 and $190,000 at the end of 2012. For the year en
ANEK [815]

Answer:

The amount Nenn debited to write off actual bad debt is $17,000

Explanation:

Please see computation below

Given that;

Beginning balance of allowance for uncollectible = $180,000

Ending balance of allowance for uncollectible = $190,000

Bad debt expenses reported = $27,000

With regards to the above information,

the net write off for actual bad debts is

= $180,000 + $27,000 - $190,000

= $17,000

6 0
3 years ago
Typical quality improvements include: a. All of the answers are correct b. product redesign c. alteration of organizational arch
tia_tia [17]

Answer:

a. All of the answers are correct

Explanation:

Typical quality improvements include electronic defect detection which will bring about efficiency in the service delivery to the customers, alteration of organizational architecture to increase local responsiveness to customer needs, purchase of robotic manufacturing systems which will more efficiency to the work being done in the organization and product redesign to meet the needs of the customers

4 0
3 years ago
onsider the market for purple potatoes below and assume that a price ceiling of $30 is imposed by the government. Calculate the
Troyanec [42]

Answer:

Deadweight loss is $5000

Explanation:

Calculation to determine what deadweight loss is

First step is to calculate the Change in quantity

Change in quantity =2500-2000

Change in quantity=500 unit

Now let determine the Deadweight loss

Using this formula

Deadweight loss =0.5* Change in quantity *(Willingness to pay at the price ceiling -Price ceiling)

Let plug in the formula

Deadweight loss =0.5*500*(50-30)

Deadweight loss=250*20

Deadweight loss =5000

Therefore the deadweight loss is $5000

3 0
3 years ago
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