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
murzikaleks [220]
2 years ago
7

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 1

6 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $1.60 per share. What is the current value of one share of this stock if the required rate of return is 7.10 percent
Business
1 answer:
SOVA2 [1]2 years ago
4 0

Answer:

$287.01

Explanation:

The 2 stage dividend discount model would be used to determine the current value of the stock.

first stage

Present value in year 1 = (1.6 x 1.16) / 1.071 = 1.73

Present value in year 2 = (1.6 x 1.16²) / 1.071² = 1.88

Present value in year 3 = (1.6 x 1.16³) / 1.071³ =2.03

Present value in year 4 = (1.6 x 1.16^4) / 1.071^4 = 2.20

second stage

[ (1.6 x 1.16^4) x (1.06) ] / (0.071 - 0.06) = 279.17

Value of the stock = 1.73 + 1.88 + 2.03 + 2.20 + 279.17 = $287.01

You might be interested in
Hor to attract teenagers to go to shopping mall (no discounting)
Radda [10]

Hello!

Often people put up signs that, that person likes and is interested in. People also can bargain with a person. So if they are leaving because they think the product is to high of a price for them, then you can tell them you can lower the price.

( word of advice, this is a last resort option)

I hope it helps!

6 0
3 years ago
Read 2 more answers
I. the European Union
svet-max [94.6K]

Answer:

C). I, II, and IV only

Explanation:

The Association of Southeast Asian Nations (ASEAN), the European Union (EU), and the North American Free Trade Agreement (NAFTA) are bodies that promote trade and economic cooperation among member countries.  They are treaties that aim are accelerating economic and social integration by eliminating or minimizing restrictions on the movement of people and commodities across borders.

Opec is an association of oil-producing countries. Its objective is to have similar oil policies in member countries. Opec is a cartel-like group that aims at controlling international oil prices.

8 0
3 years ago
Most resources are nonrenewable, and wants and needs are limited. This is an example of?
dimulka [17.4K]

Answer:

scarcity.

Explanation:

Scarcity can be defined as an economical problem that gives the relationship between non-renewable (limited) resources and the limitless wants and needs of consumers.

Basically, it's very important that producers of goods and services make decisions that would help them on how to efficiently allocate scarce or limited resources, in order to meet the unending requirements, wants and needs of consumers.

In Economics, an example of scarcity is that most of the resources used for the manufacturing of finished goods and services are nonrenewable, and as a result, the wants and needs of the end users or consumers are limited. Thus, economists would advise that economies should decide on what to produce, how to produce, when to produce and for whom to produce due to the finite and limited nature of resources i.e the concept of scarcity.

3 0
2 years ago
Liability insurance is...
Scrat [10]

Answer:

Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy.

Explanation:

8 0
3 years ago
Read 2 more answers
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an
dedylja [7]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0
3 years ago
Other questions:
  • A company has grown in size to the point that it is expanding its operations
    7·2 answers
  • What does it mean to have a shortage of goods?
    7·1 answer
  • If a monopolist or a perfectly competitive firm is producing at a break-even point, then:
    15·1 answer
  • f the government imposes a binding price ceiling in a market, then the producer surplus in that market will increase.
    11·1 answer
  • Which statement most accurately describes the FDIC's auditor independence requirements? a.FDIC independence requirements incorpo
    10·1 answer
  • The town of Draper, with a population of 20,000, sits adjacent to State University, which has an enrollment of 27,000 students.
    10·1 answer
  • Explain briefly why manufacturing offers so many careers in such varied fields.
    11·2 answers
  • Mixed economy is characterized by a co existence of?​
    5·1 answer
  • Question 5 of 10
    8·1 answer
  • Why co signing a loan is a bad idea?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!