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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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pshichka [43]

Answer:

Option (A) A debit to inventory for $200

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The entry of paying the charges for shipping is included in debit to inventory for $200 and a credit to cash for $200.

Hence,

The answer is option (A) A debit to inventory for $200

8 0
2 years ago
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Akimi4 [234]

The answer is "Individual".<span>

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4 0
3 years ago
When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:
eimsori [14]

Answer:

A.selling common stock.

Explanation:

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Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public.  Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights.  Shareholder earns dividends as a reward for providing capital to businesses.

4 0
3 years ago
The subject is reqlly politics<br>why do we have to pay to sell stuff
gavmur [86]
Because the people selling it needs to make profit. 
8 0
3 years ago
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