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Papessa [141]
3 years ago
7

I'M'Cool Co. paid a dividend of $5.25 on its common stock yesterday. The company's dividends are expected to grow at a constant

rate of 8.5% indefinitely. If the required rate of return on this stock is 15.5%, compute the current value per share of I'M'Cool Co. stock. Group of answer choices $43.90 $76.43 $56.23 $81.38
Business
1 answer:
Paul [167]3 years ago
4 0

Answer:

$81.38

Explanation:

The share price formula using the constant dividend growth model is provided below:

share price=expected dividend/( required rate of return-constant dividend growth rate)

the share price is the unknown

expected dividend=last dividend*(1+constant dividend growth rate)

last dividend=$5.25

constant dividend growth rate=8.5%

expected dividend=$5.25*(1+8.5%)=$5.69625

required rate of return=15.5%

share price=$5.69625 /(15.5%-8.5%)

share price=$5.69625 /7.00% =$81.38

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Suppose that $ 5 000 is invested at 3.9 % annual interest​ rate, compounded monthly. How much money will be in the account in​ (
BlackZzzverrR [31]

Answer:

(A) $5,131.5

(B) $12,729.5

Explanation:

The interest earned on the value of interest earned before is the compounded interest. Compounding is the reinvestment of the amount earned before and take return over it too.

As per given data

Invested amount = $5,000

Interest rate = 3.9%

Interest is compounded monthly

Monthly rate = 3.9% / 12 = 0.325%

Formula for the accumulated amount of investment

A = P ( 1 + r )^n

Accumulated Money when $5,000 is

(A) Invested for 8 months

A =  $5,000 ( 1 + 0.325% ) ^8

A = $5,131.5

(b) Invested for 24 years or 288 months (24 x 12)

A =  $5,000 ( 1 + 0.325% ) ^288

A = $12,729.5

4 0
3 years ago
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Which of the following types of value chain processes directly creates and delivers goods and services to customers?
ddd [48]

Answer:

option D

Explanation:

the correct answer is option D

in a chain process which directly creates and delivers goods and services to the customer is known as a Core process.

Support process does not create any product or services it only assists in the execution of the process.

management process deals with planning, organizing and controlling.

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7 0
3 years ago
The government of Velovia made progress in its efforts to bring rapid inflation under control. Although prices are still rising,
Hoochie [10]

Answer:

a. True

Explanation:

At the time when the velvovia government made the efforts in its progress in order to control the increased inflation but at the same time the price is also still increasing but the increase rate would be falled down so here it is recommended that the velovia experienced the disinflation where the inflation is considerably slowing and the rate of inflation is also slow down

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8 0
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Andru [333]

Answer:

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Explanation:

Economists use Gross Domestic Product (GDP) which is the final value of all goods and services produced within a country during a given period of time, usually a year as the ultimate yardstick for measuring and ranking countries' wealth, standard of living and/or illiteracy level.

And GDP per capita measures a country's economic output per person. It is by dividing the GDP of a country by its total population. Countries with the highest value are known to have a high standard of living, better health care and high literacy level and vice-versa.

5 0
4 years ago
What are you primarily doing when you reconcile your checking account?
wlad13 [49]

I believe the answer is: B. Making sure that your records match your bank’s records.

During this process, it is very common to see some difference between your records and the bank's. This could be caused by occurrence such as outstanding check, mistakes during recording, insufficient funds, etc. In order to fix this, you need to make an adjustment to find out why the difference occurs.

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