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
Otrada [13]
3 years ago
7

A firm has experienced a constant annual rate of dividend growth of 7 percent on its common stock and expects the dividend per s

hare in the coming year to be $2.40. The required rate of return on the stock is 12 percent. The value of the firm's common stock is ________.
Business
1 answer:
Sveta_85 [38]3 years ago
3 0

Answer:

The value of the firm's common stock is $48

Explanation:

The constant dividend growth model is used to determine the market value of the share and which can be expressed as:

P = \dfrac{D}{r-g}

here;

the value of the current market price of the share (P) = unknown?

The dividend expected in the next year (D) = $2.40

The required rate of return (r) = 12% = 0.12

The growth rate (g) = 7& = 0.07

Replacing the values into the above equation:

P = \dfrac{2.40}{0.12-0.07}

P = \dfrac{2.40}{0.05}

P = $48

You might be interested in
Buggy Wars Two friends and neighbours arrange to go into business together and then become bitter rivals: This is the story of B
fiasKO [112]

The correct answer to this open question is the following.

Unfortunately, the question is incomplete. Indeed, there is no question at all, just a series of statements.

What we can do is to comment on this case.

We are talking about the story of Bob Bell and Michael Sharpe.

Royalties were the main reason for this dispute. Bob Bell was the engineer that invented the bicycle trailer. Michale Sharpe would focus on Marketing the product due to his experience with computers and sales. Sharpe wanted both to share the financial risks but Bell considered it hos invention and wanted more royalties. Things went in the wrong direction, the situation got worse and they both hired lawyers in Toronto, Canada.

After disputes and legal actions, Bell won the case and he could expanse his business nationwide and signed an agreement with a Chinese company to sell the product.  On the other hand, Sharpe made a 180-degree turn and started a fitness business.

6 0
3 years ago
A(n) _____ is an agreement regarding the use of land that "runs with the land". 2012books.lardbucket.org
VARVARA [1.3K]

The answer for the missing blank would be:

Easement

<span>An easement is wherein a person establishes an agreement to use the other person’s estate. It is more an estate with the profit, and the profit can extend when you take something from a land.</span>

7 0
3 years ago
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units
juin [17]

Answer:

see explanation

Explanation:

Units to achieve target profit = Target Profit + Fixed Cost ÷ Contribution margin ratio.

where ,

Contribution margin ratio = Contribution ÷ Sales                                            

5 0
3 years ago
During 2019, Montoya (age 15) received $2,350 from a corporate bond. He also received $750 from a savings account established fo
Ksenya-84 [330]

Answer:

Montoya's taxable income = $2050

Explanation:

given data

received corporate bond = $2,350

received savings account = $750

to find out

Montoya's taxable income

solution

first we get here interest income that is

interest income = received corporate bond  + received corporate bond

interest income = $2350 + $750

interest income = $3100

and we know that here standard deduction for dependent person tax return is = $1050

so here  Montoya's taxable income will be

Montoya's taxable income = $3100 - $1050

Montoya's taxable income = $2050

6 0
3 years ago
Bellingham Company produced 1,800 units of product that required 2.5 standard direct labor hours per unit. The standard fixed ov
Ostrovityanka [42]

Answer: yes I did it was wrong lol I did already have the time for you to do something with your phone or your keyboard

Explanation:

Bm is not the day that I don’t55 think I can have yuuu on it for me

5 0
2 years ago
Other questions:
  • Why is it important to control the supply chain? Multiple Choice Control of the supply chain influences the work processes and l
    6·1 answer
  • In the U.S. current account, most of the trade deficit results from an excess of imported A. merchandise and services B. merchan
    15·1 answer
  • The buyer and seller of merchandise must agree on who is responsible for paying freight terms. Show your understanding of freigh
    6·1 answer
  • John and Jen are married and decide to open three deprecate accounts for their money what is the most likely reason for this
    7·1 answer
  • Suppose the Board of Directors of The Staten Island Suppliers Co. announces on October 4th that the regular quarterly dividend o
    8·1 answer
  • As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more mo
    9·1 answer
  • Often, an organization makes a portion of its ________ accessible to external parties as its extranet.a. blog.b. inner firewall.
    12·1 answer
  • Employers often decide if they want to meet you based on your… so it is very important to highlight your strengths.
    13·2 answers
  • James is the new manager of operations at Springfield Motors. To his dismay, he finds the employees coming in late to work, taki
    11·1 answer
  • Imagine that a firm sends out a message in the form of a print advertisement for a product. Which element is most likely to cont
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!