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hichkok12 [17]
3 years ago
13

Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $3 per share and has announced that it wil

l increase the dividend by $5 per share for each of the next four years, and then never pay another dividend. If you require a return of 9.7 percent on the company’s stock, how much will you pay for a share today
Business
1 answer:
Anni [7]3 years ago
3 0

Answer:

If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

Explanation:

Price today = Present Value of Dividends

Present Value of Dividends :  

Year                Dividend             Discounting Factor(9.7%)

0                 3.0000  

1                    8.00                 0.9115770282588880

2                    13.00                 0.8309726784493050

3                     18.00                  0.7574956047851460

4                     23.00                  0.6905155923292130  

year                                     Present Value(Dividend* Discounting factor)

0

1                                                                         7.2926162260711000

2                                                                        10.8026448198410000

3                                                                        13.6349208861326000

4                                                                        15.8818586235719000

Present Value of Dividends                            47.612040555616600

Therefore, If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

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Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B wi
n200080 [17]

Answer:

The firm will not sell any bundle, the amount of bundle to be sold will be zero.

Explanation

Solution

Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.

Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude  that  their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.

However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a  Bundle.

We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.

Therefore, any bundle will not be sold by firm. the amount of Bundle sold will be known as a zero Bundle

5 0
3 years ago
In two or three sentences, describe how you would use some of the budgeting tools to help manage your money.
Bas_tet [7]

Answer:

Budgeting tools provide notifications and reminders to help us keep track of our spending and savings.

Explanation:

We may use a budgeting program to keep track of how much we spend. Budgeting tools can assist us in reducing undesirable and unneeded spending. It can also help us be more disciplined with our spending and save more money. We may set up notifications or reminders to help us keep track of our spending.

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What time peropd allows an insured's life insurance policy to remain in force even if the premium was not paid on tje due dates?
Maru [420]

Grace period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date.

<h3>What is grace period?</h3>

A life insurance policy won't lapse during the grace period even though a payment is past due after a missed insurance premium is due. Every state in the US requires the grace period, a highly helpful provision, to be included in every life insurance policy. Depending on the rules of each state, the minimum grace period is from 28 to 31 days; however, some businesses may grant extended grace periods.

When the required number of days have gone, the grace period formally ends at the close of business on the day the missing premium payment is due. The grace period in a whole life, universal life, or variable universal life policy would only be applicable if the premium payment was past due and there was no cash value left in the policy. It is unlikely that a policy will enter "grace period status" if a premium payment is missed if cash value is still present as long as it may be utilised to pay the premium or at the very least draw a loan to pay the premium.

To learn more about grace period, visit:

brainly.com/question/27961437

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7 0
1 year ago
As a marketing term, __________ generally includes not only physical goods, but also services and ideas. Multiple Choice marketi
steposvetlana [31]

Answer:

product

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So, the 2nd last option is correct

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