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jekas [21]
3 years ago
12

Asonia Co. will pay a dividend of $4.30, $8.40, $11.25, and $13.40 per share for each of the next four years, respectively. The

company will then close its doors. If investors require a return of 9.9 percent on the company's stock, what is the stock price?
Business
1 answer:
Elan Coil [88]3 years ago
4 0

Answer:

$28.53

Explanation:

Asonia Co. stock price will be calculated using discount factor of 9.9% which is investors required rate of return for company's stock.

Stock price = dividends * (1+r)^ - n

$4.30 (1.099)^-1 + $8.40 (1.099)^-2 + $11.25 (1.099)^-3 + $13.40 (1.099)^-4

$3.91 + $6.95 + $8.48 + $9.19

$28.53

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22%

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Net income = Annual cash flow - Depreciation

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Net income = 24350 - 15,000

Net income = $9350

Average investment = Beg. value + End. Value / 2

Average investment = 80,000 + 5,000 / 2

Average investment = $42,500

Annual rate of return = Net income / Average investment * 100

Annual rate of return = $9350 / $42,500 * 100

Annual rate of return = 0.22 * 100

Annual rate of return = 22%

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making loans to the government

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2 years ago
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11111nata11111 [884]

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In ________ teams, there is an expectation of increased productivity and quality of work life because employees are delegated gr
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In self managed teams, there is an expectation of increased productivity and quality of work life because employees are delegated greater authority and granted increased autonomy.

<h3>What is self managed team?</h3>

Self-managed team includes group of people a that work together to render a service or to sell and produce a good.

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