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Serjik [45]
3 years ago
12

Jenin recently purchased 100 shares of Tarifi's Optical common stock for $6,000. The stock is expected to provide an annual cash

flow of dividends of $400 indefinitely. Assuming a discount rate of 8 percent, how does the price Jenin paid compare to the value of the stock?
Business
1 answer:
dusya [7]3 years ago
8 0

Answer:

Since the present value of the perpetuity ($5,000) is less than the price that Jenin paid for the stocks ($6,000), we can conclude that she paid an excessively high price for them.

Explanation:

Jenin invested $6,000 in stocks that yield a perpetual dividend. In order to compare if Jenin made a good deal we must find the present value of the perpetuity:

present value = annual cash flow / discount rate = $400 / 8% = $5,000

Since the present value of the perpetuity is less than the price that Jenin paid for the stocks, we can conclude that she paid an excessively high price for them.

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Productivity in the service sector is difficult to measure because new technology adds to quality of services provided.

<h3>What is productivity?</h3>

Productivity is defined as the efficient way of producing goods and services. Productivity occurs when the input to a system matches the output.

When technology is added to productivity, the service sector finds it difficult to measure due to the quality of the services provided

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8 0
2 years ago
Nico bought 100 shares of cisco systems stock for $30.00 per share on january 1, 2013. he received a dividend of $2.00 per share
Kamila [148]
Jan. 1, 2013:
Initial investment = (100 shares)*($30/share) = $3,000.

End of 2013:
Dividend collected = ($2/share)*(100 shares) = $200

End of 2014:
Dividend collected = ($3/share)*(100 shares) = $300

End of 2015:
Dividend collected = ($4/share)*(100 shares) = $400

Returns::
 From sales of 100 shares = ($33/share)*(100 shares) = $3,300
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 Total returns = 3,300 + 900 = $4,200

Realized returns = Total returns - Initial inestment
                            = 4200 - 3000
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Answer: $1,200
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Which of the following best describes a surplus?
muminat

Answer:

C. there is more supply than demand

Explanation:

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7 0
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When an investor purchases Class A shares of a mutual fund in their brokerage account at a FINRA member firm, the sales charge i
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When an investor purchases Class A shares of a mutual fund in their brokerage account at a FINRA member firm, the sales charge is apportioned to all of the following except The mutual fund.

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The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.

A member is a registered investment firm or a brokerage or a dealership. Generally, an associated person is registered under the company rules and holds an important position at a company making investment decisions.

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8 0
2 years ago
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