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
spayn [35]
2 years ago
9

The Red Bud Co. pays a constant dividend of $1.20 a share. The company announced today that they will continue to do this for an

other 3 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7 percent
Business
1 answer:
Gelneren [198K]2 years ago
5 0

Answer:

the  one share of this stock worth today is $3.15

Explanation:

The computation of the  one share of this stock worth today is shown below:

= Dividend per share ÷ (1 + required rate of return^years) + Dividend per share ÷ (1 + required rate of return^years) + Dividend per share ÷ (1 + required rate of return^years)

= ($1.20 ÷ 1.07^1) + ($1.20 ÷ 1.07^2) + ($1.20 ÷ 1.07^3)

= $3.15

hence, the  one share of this stock worth today is $3.15

You might be interested in
A municipal bond carries a coupon rate of 5.45% and is trading at par. What would be the equivalent taxable yield of this bond t
podryga [215]

Answer:

7.78%

Explanation:

Equivalent taxable yield can be calculated as follows

Equivalent taxable yield = Coupon rate / 1 - Tax Rate

Equivalent taxable yield= 5.45%/ 1 - 30% x 100

Equivalent taxable yield = 7.78%

4 0
3 years ago
What are some benefits of voluntary exchange? What are the responsibilities?
PtichkaEL [24]

Answer:

The principle or model of voluntary exchange assumes that people will act based on self-interests. This is an important component of a healthy economy. If individuals in a market economy do not feel that they will benefit from the exchange, they would not be willing to make it.

Hope this helps!

7 0
3 years ago
The G20 represents the financial interest of nations that account for about _____________ of world trade.​
labwork [276]

Answer:

  about 80% of world trade

Explanation:

The G20 consists of 19 individual countries and the European Union. If trade within the EU is included, the members account for about 80% of world trade. If trade within the EU is excluded, the members account for about 75% of world trade.

5 0
2 years ago
Read 2 more answers
rony is the managing director of a fabric manufacturing company in order to limit the profit of the company and , therefore , th
77julia77 [94]

Rony as the managing director of a fabric manufacturing company enjoys an employee benefit called <u>perquisites</u><u> (D)</u>.

Let's discuss each employee benefit option we have:

Novated lease is an employee benefit that allows an employer pays for its employee car lease and car runnit costs out of its employee's salary package. An employee will choose a car he wants and a novated lease arrangement is set up between the employee, employeer, and car agent.  The employer then will pay directly to the car agent from the employee's salary. The employee may save tax and running costs using this kind of leasing.

Fiscal Incidence is the combined overall economic impact of both government taxation and expenditure on the real economic income of individuals. Fiscal incidence happens when the econonmic incidence of taxation is combined with the economic incidence of government expenditure. Fiscal incidence is the overall increase or decrease in welfare that individual enjoys from the state's taxing and spending policies.

Swaps is a derivative contract which stated that the two parties will exchange the cash flows or liabilities from two different financial instruments. Swaps usually are based on a notional principal amount. The most common kind of swap is an interest rate swap.

Perquisites or fringe benefits are benefits an employee received over and above his standard salary. Some of these components are taxed separately and someother are tax-exempted. Perquisites may be classified into 3 different types:

  1. Taxable perquisites
  2. Tax-exempted perquisites
  3. Perquisites taxable only by employee

By offering perquisites to its employee, a company may increase its employee productivity, loyalty and retention. Prequisites could also be used as an attraction for top talent.

Learn more about Employee Benefit here: brainly.com/question/12143528

#SPJ4

Complete Question:

Rony is the managing director of a fabric manufacturing company. In order to limit the profit of the company and therefore, the txes on the business the management pays a hefty amount to Rony as year-end bonuses. The company also pays for his family cavations and foreign trips. The benefits enjoyed by Rony are called ____

a. Novated leases

b. Fiscal incidences

c. Swaps

d. Perquisites

6 0
9 months ago
The United States produces computers and sells them to Mexico. At the same time, Mexico produces cars and sells them to the Unit
iren [92.7K]

Answer: B .An increase in imports into the United States and a decrease in exports to Mexico, which will cause a decrease in aggregate demand and real GDP

Explanation: Both the United state and Mexico are involved in international trade between the two countries in this scenario. So if there is a an appreciation in the Dollars there will be increased in importation into the United States, since fewer dollars will be required to import items. This will caused decrease in export to Mexico which will decreased aggregate demand and real GDP.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Jeff cannot find any of his receipts for entering into his budget. In addition, he cannot find any of his bank statements. What
    10·1 answer
  • Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respec
    8·1 answer
  • Risk is an important concept affecting security prices and rates of return. Risk is the chance that some unfavorable event will
    8·1 answer
  • What Xmas product did Sir Henry Cole produce in 1843?
    5·1 answer
  • Please determine which economic feature is described by the statements below. A __________ occurs as the result of a significant
    12·2 answers
  • The value-added is:
    12·1 answer
  • All the airlines that fly to the island country of Klerwada distribute tourist information pamphlets in their flights. These pam
    6·1 answer
  • hen a store has a sale, it cuts the prices on the goods it sells. Is that more likely to happen when there is a surplus orwhen t
    12·1 answer
  • FIN issues a $1000 par value bond that pays 7 precent annula interest and will mature in 14 years. The current market price for
    5·1 answer
  • Elsanora Corporation reports the year-end information from 2018 as follows: Sales (100,000 units) $500,000 Less: Cost of goods s
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!