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Kobotan [32]
2 years ago
6

You are evaluating shares in Honeywell International (HON). They currently pay an annual dividend of $4.00 per share this year a

nd expect to raise that by 5% per year every year in the future. If you use a discount rate of 10%, what is the value of HON shares(to two decimal places)?
Business
1 answer:
xxTIMURxx [149]2 years ago
7 0

Answer:

$84

Explanation:

Calculation for what is the value of HON shares

Using this formula

Value of HON shares=(Expected dividend next year)/(Discount rate -Growth rate of dividend)

Let plug in the formula

Value of HON shares= 4(1+.05)/(.10-.05)

Value of HON shares= (4.2/ .05)

Value of HON shares= $84

Therefore the Value of HON shares will be $84

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Answer:

$50,500

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4 0
3 years ago
The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,500 Current asse
Katena32 [7]

Answer:

0.1046 or 10.46%

Explanation:

The computation of the sustainable growth rate is shown below:

The Sustainable growth rate of the firm is

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And,

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So,  

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8 0
3 years ago
With a pull marketing strategy,A. orders for merchandise are generated at the store level based on sales data captured at POS te
o-na [289]

Answer:

A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.

Explanation:

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4 0
3 years ago
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Nady [450]

Answer:

$14,960

Explanation:

Pay $22,000 bill in December:

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8 0
3 years ago
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marta [7]

Answer:

a. in the general ledger

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