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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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kiruha [24]

Answer: Hi your question is incomplete attached below are the missing details

answer :

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B) i) $18

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   iii) $8

Explanation:

<u>A) Determine the weekly shortage of used DVDs due to ceiling price = $11</u>

shortage = Quantity demanded ( H ) - Quantity supplied ( F )

at ceiling price of $11 ; quantity demanded = 20 , Quantity supplied = 4

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B) i) <em>New consumer surplus = ADLK </em>

ADLK = ∠ ABK + BKLD

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DLE = 1/2 * 4 * ( 11-8 )

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<em> iii) Total economic surplus lost </em>

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6 0
3 years ago
Demand for earbuds is represented by: P = 402 – 2Q The costs are $8 per set of earbuds. In order to stock earbuds, other items w
Mkey [24]

Answer:

Q is 98

Explanation:

Marginal (average) cost (including opportunity cost) = $8 + $2 = $10

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MR = dTR/dQ = 402 - 4Q

Equating with MC,

402 - 4Q = 10

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Q = 98

7 0
3 years ago
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AysviL [449]

Answer:

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Answer:

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