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Ne4ueva [31]
3 years ago
8

Fowler is expected to pay a dividend of $1.81 one year from today and $1.96 two years from today. The company has a dividend pay

out ratio of 40 percent and the PE ratio is 18.95 times. If the required return on the company's stock is 11.9 percent, what is the current stock price?
Business
1 answer:
Mekhanik [1.2K]3 years ago
6 0

Answer:

$77.34

Explanation:

The computation of the current stock price is shown below:

But before that following calculations need to be done

EPS for year 2 = Dividend at year 2 ÷ Payout Ratio

= $1.96 ÷  0.40

= $4.90

Now  the price at year 2 is

Price at year 2 ÷ EPS at year 2 = PE ratio

Price at year 2 ÷ $4.90 = 18.95

Price at year 2 = $92.855

Now finally the current stock price is

= Dividend at year 1  ÷ (1 + rate of interest) + Dividend at year 2 ÷ (1 + rate of interest)^2 + Price at year 2 ÷ (1 + rate of interest)^2

= $1.81 ÷ 1.119 + $1.96 ÷ 1.119^2 + $92.855 ÷ 1.119^2

= $77.34

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Answer:

Great data entry skills. ...

Good communication. ...

Knowledge of bookkeeping principles. ...

Organising records. ...

Attention to detail. ...

Have an understanding of the bigger picture. ...

Be disciplined. ...

Have an interest in furthering your education.

4 0
3 years ago
The GDP deflator is a measure of the A. average level of prices of intermediate goods and services in the economy. B. total prod
Alexeev081 [22]

Answer:

D. average level of prices of final goods and services in the economy.

Explanation:

The GDP deflator is a measure of the average level of prices of final goods and services in the economy

5 0
4 years ago
A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and
m_a_m_a [10]

A good marketing plan helps managers make strategic decisions and provides a framework for effective implementation and control.

<h3>What are implementation and control?</h3>
  • One of many strategic controls available to the company to help direct the strategy's execution is implementation control. Implementation control aims to ensure that results are being delivered while maintaining strategy execution on course as planned.
  • The process of putting plans into practice to achieve the desired outcome is known as strategy implementation. In essence, it's the art of accomplishing things. Every organization's ability to carry out choices and crucial procedures effectively, consistently, and efficiently determine how successful it will be.
  • Implementation control typically establishes performance standards, assesses actual performance, and identifies the reasons why these standards weren't met. Implementation controls also include timelines, budgets, and milestones.
  • Security measures can also be categorized in different ways based on how they are implemented. Technical, managerial, and operational are the three main categories for implementation.

A good marketing plan helps managers make strategic decisions and provides a framework for effective implementation and control.

To learn more about implementation and control, refer to:

brainly.com/question/14273000

#SPJ4

3 0
2 years ago
22) One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S
saw5 [17]

Answer: C) $1.04/C$1

Explanation:

We define the inflation rate in a certain country as

  • a rate at which the value of a currency is falling
  • as a result the usual level of prices for goods and services keeps rising.

1 year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1.

That time inflation rate in US was 4% greater than in Canada.

So, the  current spot exchange rate of U.S. dollars for Canadian dollars :

($1 + 4% of $1)/C$1

=($1+$0.04)/ C$1

=$1.04 / C$1

Hence, the correct option is C) $1.04/C$1

6 0
3 years ago
When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry
tester [92]

Answer:

Explanation:

According to my research on different financial terminology, I can say that based on the information provided within the question the appropriate journal entry would include a debit to a liability and a credit to a revenue account. This must be included otherwise the journal entry will state the sale of the product or service as being made twice, which will cause errors in the financial statements.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
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