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Finger [1]
3 years ago
14

A start up company has declared that it will not pay any dividends on its stock over the next 9 years because it requires all of

its earnings to be plowed back into the business to fuel growth. The firm will pay a $14 per share dividend 10 years from today and will increase the dividend by 3.9% per year thereafter. If the required rate of return on this stock is 12.5%, what is the current share price
Business
1 answer:
Mice21 [21]3 years ago
5 0

Answer:

$56.40

Explanation:

Value of the share = D10/(r-g)

Value of the share = 14/(0.125-0.039)

Value of the share = 14/0.086

Value of the share = $162.79

The current price of the share = Value of the share / (1+R)^9

The current price of the share = 162.79/1.125^9

The current price of the share = 162.79/2.88650757819

The current price of the share = 56.39687254937967

The current price of the share = $56.40

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U.S. imports are​ _____ produced in​ _____ and sold in​ _____. A. goods and​ services; any other​ country; the United States B.
maks197457 [2]

Answer:

The correct answer is option A.

Explanation:

US imports refer to the goods and services that are produced in some countries other than the US. These goods are then sold in the US. The imports for the US are exports for the country that is producing those goods and services.

While the goods and services that are produced in the US and sold in some other country are exports for the US and imports for the purchasing country.

6 0
3 years ago
Terrence buys a new car for $20,000. The value of the car depreciates by 15% each year. If f(x) represents the value of the car
Lana71 [14]
<span>Hi there,

100% - 15% = 85%
85% = 85/100 = 0.85

This is your factor of depreciation
The power it is raised to equals the years
20,000 x 0.85^3
= <span>12282.5
</span>
I hope my answer has come to your help. Thank you for posting your question here in Brainly.

</span>
5 0
3 years ago
Read 2 more answers
To determine the true cash balance Multiple Choice a. add bank collections of depositors’ accounts receivable to the unadjusted
tensa zangetsu [6.8K]

Answer: d. All of the answers describe adjustments that must be made to the unadjusted book balance in order to determine the true cash balance.

Explanation:

Options A to C all need to be done to ascertain the True cash balance.

The bank collections from accounts needs to be added to reflect that money was received.

Bank charges need to be subtracted to reflect that the Bank has taken away some money for their administrative roles.

Interest earned from the bank as an income needs to reflect as well.

6 0
3 years ago
When marginal cost exceeds average total cost:
gtnhenbr [62]

Answer:

B) average total cost must be rising

Explanation:

Marginal cost is the rate at which total variable cost increases when one more unit is produces.

So when marginal cost is larger than average cost, it means that total average costs must be increasing.

For example, we have the following production costs:

  • total costs = $100
  • units produced = 20 units
  • total average costs = $5 per unit

If the marginal cost of producing 1 more unit is $6, then the total costs will be $106 and the total average cost will be $5.05 per unit (= $106 / 21 units).

4 0
4 years ago
In 2000, a star major-league baseball player signed a 10-year, $266 million contract with the Texas Rangers. Assume that equal p
guapka [62]

Answer:

Complete detailed step wise solution is given below:

3 0
4 years ago
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