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
Each year statistics are published giving the number of persons killed in highway accidents in the u.s.a. the total for last yea
kogti [31]
<span> the number of persons killed in highway accidents in the u.s.a. in 2016 was: 40,000The number of this deaths has been increased for about 6% compared to the previous year. This makes 2016 so far became the deadliest year in term of highway accidents</span>
8 0
3 years ago
A numerical measure of your creditworthiness is your credit ___.
nydimaria [60]
The answer is C. Score
6 0
3 years ago
Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.
mario62 [17]

Answer: False

Explanation:

Ethics are the moral principles which govern the behavior of a person. Ethics help us to know what is right or what is wrong.

Ethics Training program are done in order to enable workers to be able to identify and also deal with the ethical problems that they may face.

Therefore, the statement that "Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior" is false.

6 0
3 years ago
Which of the following is NOT a characteristics of good application?
slavikrds [6]

Answer:

C. completed quickly

Explanation:

8 0
3 years ago
Read 2 more answers
Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b
Aleks04 [339]

Answer:

$27,900

Explanation:

The computation of adjusted cash balance is shown below:-

Adjusted cash balance = Balance at May 31 - bank service fees - NSF check

= $28,525 - $25 - $600

= $27,900

Therefore for computing the adjusted cash balance we simply deduct the bank service fee and NSF check from balance at may 31

Hence, the adjusted cash balance is $27,900

7 0
3 years ago
Other questions:
  • Suppose that Jane enjoys Diet Coke so much that she consumes one can every day. Although she enjoys gourmet cheese, she consumes
    7·1 answer
  • Farmers in developing countries want the united states to reduce the subsidies that it gives to u.s. farmers because subsidized
    14·1 answer
  • The long run is best defined as a time period during which at least one input cannot be changed. during which all inputs can be
    10·1 answer
  • In the budget constraint framework, when the price of a good rises and demand for the other good decreases, what can you say abo
    14·1 answer
  • Which statement is correct? a. Producers are "Kings" in a market economy because they determine what is produced. b. Freedom of
    9·1 answer
  • In regard to an operating budget identifiable costs may generally include _________.
    9·1 answer
  • People decide to save 20 percent of their incomes. The value of the marginal propensity to consume is ________ and the value of
    5·1 answer
  • Which of the following statements regarding an internal rate of return analysis is false?
    9·1 answer
  • You own a portfolio that is 23 percent invested in Stock X, 38 percent in Stock Y, and 39 percent in Stock Z. The expected retur
    10·1 answer
  • The __________ provides the same results as a check because it withdraws funds from a checking account.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!