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
AVprozaik [17]
3 years ago
11

What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a divi

dend of $1.36 per year? The required rate of return is 12.5 percent.
a. $11.24
b. $9.52
c. $10.88
d. $10.64
e. $11.47
Business
1 answer:
e-lub [12.9K]3 years ago
6 0

Answer:

$10.88

Explanation:

Calculation to determine What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities

Using this formula

Maximum payment for common stock=Dividend/Required rate of return

Let plug in the formula

Maximum payment for common stock=$1.36/.125 Maximum payment for common stock= $10.88

Therefore What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities is $10.88

You might be interested in
A regional trucking company landed a contract to supply products for a major retailer. To do this, it needs to hire an IT profes
Zigmanuir [339]

Answer: • set up the computer hardware for the database.

• Set up the computer software for the database.

• train designated employees to use the database

• protect the confidentiality of the database

Explanation:

The options include:

a. Set up the computer hardware for the database

b. Set up the computer software for the database

c. train designated employees to use the database

d. Design a help page to show people how to use the database

e. protect the confidentiality of the database

Since the new hire is an IT professional who is employed to create a shipment database, the individual should be able to:

• set up the computer hardware for the database.

• Set up the computer software for the database.

• train designated employees to use the database

• protect the confidentiality of the database

7 0
3 years ago
To maximize its profit, a producer should set a price (and produce that related output) where:A. marginal cost is just less than
marin [14]

Answer:

The correct answer is A.

Explanation:

To maximize the profit you need to set a price where marginal cost equals marginal income. If marginal income is higher than marginal cost, each additional unit will increase income. If the marginal cost is higher than the marginal income, each additional unit will decrease income. Therefore, to maximize profit Cmg=Img.

3 0
2 years ago
Enterprise project management software is also known as a _____ tool of project management software.low-end mid range high-end b
skelet666 [1.2K]

Enterprise project management software is also known as a<u> High-End</u> tool of project management software.

<h3>What is Project management?</h3>

Project management is the planning and coordination of a company's resources to advance the completion of a particular work, event, or duty. Resources managed include people, money, technology, and intellectual property. Projects and ongoing activities can all be included.

Project management is frequently linked to industries like engineering and construction, as well as, more recently, healthcare and information technology (IT), which frequently require a complicated set of components to be finished and connected in a specific way in order to produce a usable output.

Regardless of the industry, the project manager often has a similar role: defining the project's goals and objectives and deciding when and by whom each component will be finished.

Additionally, they develop quality control checks to make sure finished components adhere to a set standard.

Thus, project managers play a vital role in the completion of projects.

For more information on Project management, refer to the given link:

brainly.com/question/15404120

#SPJ4

5 0
1 year ago
Earlier this week, two workers accidentally stepped off the edge floor where they were working. Because there was no guarding, t
nikdorinn [45]
Inspection of what i dont understand

8 0
3 years ago
Which of the following are true if you pay only the minimum amount each month towards your credit card bill?
Klio2033 [76]
Your credit will decrease over time
8 0
3 years ago
Other questions:
  • Why did many business owners want very little interference from the government?
    11·1 answer
  • The city wants to pave the road in front of Sam Smith's house. Sam has 110 front feet. The cost to pave is $35 a linear foot and
    6·1 answer
  • The ____ act requires banks and financial institutions to alert customers of their policies and practices in disclosing customer
    7·1 answer
  • CMr. Garcia is listening to an investment planner talking about mutual funds; Garcia really believes in investing in such funds
    8·1 answer
  • A United States-based faculty member goes on sabbatical and works in Finland for a government-run university teaching classes fo
    9·1 answer
  • A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ s
    5·1 answer
  • What is the percentage loss on the funds she invested if the interest payment is included in the calculation
    7·1 answer
  • Select all that apply. Which of the following items demonstrate poor choices made by private property owners?
    15·2 answers
  • In _____, products are made according to customer specifications.
    11·2 answers
  • MC Qu. 94 A company uses a process... A company uses a process costing system. Its Assembly Department's beginning inventory con
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!