1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serhud [2]
3 years ago
9

1. How much would you pay for a share of stock paying a dividend​(cash payout ​C) of ​$4 to be paid in one​ year, a known sellin

g price in one year ​(​P) of ​$50​, and expected return ​(R) of similar assets of 2​%?2. Compute the price of a share of stock that pays a​$1.50 per year dividend and that you expect to be able to sell in one year for ​$20, assuming you require a 10​% return.
Business
1 answer:
Mnenie [13.5K]3 years ago
8 0

Answer and Explanation:

The computation is shown below:

a. The willing to pay is

= (Current year price) ÷ (1 + rate) + (current year dividend) ÷ (1 + rate)\

= ($50) ÷ (1 + 0.02) + ($4) ÷ (1 + 0.02)

= $52.94

b. The price of a share is

= (Current year price) ÷ (1 + rate) + (current year dividend) ÷ (1 + rate)\

= ($20) ÷ (1 + 0.10) + ($1.50) ÷ (1 + 0.10)

= $19.55

We simply applied the above formula so that the correct value could come

And, the same is to be considered

You might be interested in
A new coffee machine costs $50,850 and the finance office has quoted you an Annual Percentage Rate (APR) of 5.9%, compounded mon
LenKa [72]

Answer:

6.062189766%

Explanation:

(1+\frac{.059}{12})^{36}=(1+i)^3\\

5 0
3 years ago
Goleman sorts leadership styles into six categories. In order for a leader to get results, different styles are used for differe
vagabundo [1.1K]

Answer:

The most appropriate leadership style is the Visionary Leadership style

Explanation:

To successfully implement the new system, The leader needs to get his team mates' buy-in by helping them see the impact of the change on the business and how the change impacts their jobs and also emphasize their role in making the change happen successfully

With this style the leader:  

1) is taking responsibility for facilitating the change and communicating how the change will happen.

2) Selling the vision by explaining and describing the vision and influencing his team.

3) Ensures the appropriate persons align the vision with their jobs and objectives.

7 0
3 years ago
Which of these is not one of the basic functions of the management​ process?
OleMash [197]
I got inspecting although you did not put any choices out ??....
5 0
3 years ago
1. Brooks Agency set up a petty cash fund for $150. At the end of the current period, the fund contained $28 and had the followi
Iteru [2.4K]

Explanation:

The journal entries are as follows:

1. Petty cash A/c Dr $150

              To Cash A/c $150

(Being the establishment of petty cash is recorded)

2.

Entertainment expenses A/c Dr $70

Postage expense A/c Dr $30

Printing A/c Dr $22

                    To Petty cash A/c $122

(Being the reimbursement of petty cash fund is recorded)

6 0
4 years ago
How has technology impacted the way a custodian organizes information and completes daily tasks.
Leokris [45]
Custodian can use technology in many ways like they can use it to keep track of inventory on their supplies, they may use it to keep track of who works what shift, and what jobs need to be compleated

4 0
3 years ago
Other questions:
  • A rise in the foreign interest rate will Group of answer choices
    11·1 answer
  • Miguel is doing a research paper on new york city's stonewall riots of 1969. he visits the scene of the riots, interviews people
    6·1 answer
  • 9. Suppose the principal of a public school re-
    15·1 answer
  • An electrician charges $50 to make a house call and $40 for each hour worked. if you have $200, can you afford a repair that tak
    15·1 answer
  • A company that is based on a direct flow of authority from the top executive to subordinates is known as a ________ organization
    7·1 answer
  • Which statement best describes a command economy?
    5·2 answers
  • Are the buying and selling of stocks centralized activities? Why or why not? Yes, the New York Stock Exchange is the principal e
    11·2 answers
  • After learning the course, you divide your portfolio into three equal parts, with one part in Treasury bills, one part in a mark
    11·1 answer
  • Why is it important to be extremely careful when completing your 1040 form?.
    7·1 answer
  • which of the following had the greatest impact in pulling the u.s. economy out of the great depression? group of answer choices
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!