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
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 .

You might be interested in
A car dealer advertises a rock-bottom price for a sports utility vehicle that usually goes for $1,000 or more. When you get to t
maria [59]

Answer:

b. bait pricing

Explanation:

Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.

This is considered an illegal means of marketing.

I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.

This is bait pricing strategy.

3 0
3 years ago
Caracteristicas profesionales de un instructor
7nadin3 [17]

Answer:

Un instructor es un profesional cuya tarea es la de, como su nombre lo indica, instruir a otras personas respecto de la realización de una actividad, arte o tarea determinada.

Así, por ejemplo, existen instructores de diversas actividades, como vuelo, buceo, entrenamiento personal, etc., los cuales enseñan a las personas a realizar su actividad, supervisando su performance y corrigiendo sus errores, para formar así personas idóneas en el arte o actividad que el instructor domina.

4 0
3 years ago
For a class assignment that students are to complete individually, Student A and Student B decide to collaborate. Student A comp
Ratling [72]

Answer:

Both unethical collaboration and plagiarism

Explanation:

Unethical collaboration -

It refers to the practice of sharing common answers or words , is referred to as unethical collaboration .

For example , students copying the same answer is an example of unethical collaboration .

Plagiarism -

It refers to the method of copying some other person's work completely , without the legal consult of the person , is referred to as the practice of plagiarism .

Hence , from the given scenario of the question ,

The correct answer is -  Both unethical collaboration and plagiarism .

6 0
3 years ago
What do successful entrepreneurs have in common?
dmitriy555 [2]

Answer:

market trends change constantly, funding fall through, business partners flake, and ideas may go wrong

4 0
3 years ago
Read 2 more answers
Students interested in working as a chef might participate in what?
kolezko [41]
From my research, Skills USA is the most hands on when it comes to that kind of stuff.

I personally think the answer is C
7 0
3 years ago
Read 2 more answers
Other questions:
  • Capstone Investments is considering a project that will produce cash inflows of $11,000 at the end of Year 1, $24,000 in Year 2,
    12·1 answer
  • Easy Appliances Inc. is considering a new inventory system that will cost $100,000. The system is expected to generate positive
    11·1 answer
  • Which characteristic places people at a higher risk for trying illicit drugs?
    5·1 answer
  • Which of these job descriptions is least likely to fall under an events manager?
    13·1 answer
  • he Acmeville Metropolitan Bus Service currently charges $0.99 for an all-day ticket, and has an average of 433 riders a day. The
    10·1 answer
  • How do you pay back an auto loan?
    11·1 answer
  • What was Rutherford's contribution to our knowledge of atoms
    5·1 answer
  • If 2G Robotics is bought by another firm and Gillham decided to allocate a total of 400 points to employees, and the value of th
    9·1 answer
  • Why is compound interest preferable to simple interest when investing?
    12·1 answer
  • Which of the following is not an example of<br> institutional consumers?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!