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spayn [35]
3 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]3 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

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Explanation:thethethethect

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Answer:

<u>growth.</u>

Explanation:

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For a company to grow effectively, it needs to be analyzed and planned for its growth strategy, so that there is restructuring and innovation that enables compliant growth to take advantage of business-related opportunities.

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3 years ago
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Real Estate Law Commissioner

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4 0
3 years ago
The pension plan for GL Inc. requires a contribution to the plan administrator equal to 11% of employee salaries. Salaries were
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Answer:

a. credit to Cash for $63,316.

Explanation:

Given;

Pension contribution by GL Inc. percentage = 11%

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Amount to be contributed = 11% × $575,600

                                            = $ 63,316.00  

To account for this, the required journal would be

Debit      Pension Expense        $ 63,316.00

Credit     Cash account              $ 63,316.00

The right option is a. credit to Cash for $63,316.

6 0
3 years ago
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Answer:

After observing the question, there are blank spaces to fill in the question. These blank spaces are to be filled with the right answers. Since it was not shown in the question, I will write out the question again and appropriately add the answers for proper understanding. I hope it helps.

In order to qualify as substantial performance, the party who fails to perform perfectly must perform <u>in good faith</u>. <u>Intentional</u> failure to comply with the contract terms is a <u>breach</u> of the contract. The performance must not vary greatly from the promised performance: an omission, variance or defect in performance is considered <u>minor</u> if it can be <u>remedied</u> by compensation. finally, the performance must create substantially the same <u>benefits</u> as those promised in the contract.

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3 years ago
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