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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

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julsineya [31]

Answer:

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Explanation:

A liability is a current one if it is due between today and the next one year(12 months),however any liability whose payment date is beyond one year is classified as long-term liability.

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3 years ago
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ryzh [129]

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Quality of life.

Explanation:

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3 years ago
Mercedes-Benz has a self-driving car capable of 80 miles-per-hour speed. You have to keep your hands on the wheel in this E-clas
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Answer:

I would use survey research to determine the general opinion, positive or negative, on the feature from the general public.  

Explanation:

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I would design a focus group survey with a series of questions where participants can choose from a range, 0-5, on how much they agree with a certain statement.

At the beginning of the survey, participants would read a brief paragraph explaining the features on the new car before continuing to the part where they record their responses.

Once the survey is conducted, the data can be analyzed. If the majority, say 70%, of all people surveyed agree strongly that a self driving car is a good idea and that the world is ready then you can assume that the general population is in fact ready.

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Mama L [17]

Answer:

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Explanation:

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