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OverLord2011 [107]
3 years ago
8

A company expects to pay a dividend of $3.50 per share one year from today. the dividend is expected to grow at 30 percent per y

ear for three years. Thereafter, the dividend will grow at 4 percent per year in perpetuity. if the appropriate discount rate for the stock is 13 percent, what is the price of the stock today
Business
1 answer:
monitta3 years ago
7 0

Answer: $70

Explanation:

Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price

Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)

= (3.50 * 1.30³ * 1.04) / (13% - 4%)

= $88.856

Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴

= $69.97

= $70

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The transactions demand for money is most closely related to money functioning as a
QveST [7]

Answer:

<h2>The function of money as <u>medium of exchange</u> is most closely related to the overall demand for monetary transaction.</h2>

Explanation:

  • The transaction demand for money basically reflects the overall demand for monetary transactions in the economy which is essentially determined by the respective demands for goods and services and how many times they are commercially exchanged or traded in various markets in the economy.
  • Therefore, the higher the commercial flow or movement of goods and services in the economy, the higher will be the demand for money in the economy.
  • Now,one of the important functions of money is medium of exchange meaning that it is practically accepted as an universal medium of exchange for buying and selling any product or service in any economy or country across the world.
  • Since, money is the only acceptable unit or medium of exchange for any commercial transaction or exchange, the demand for monetary transaction is also practically related to the money being used as unit or medium of exchange.
8 0
3 years ago
A C corporation earns $ 7.90 per share before taxes and the company pays a dividend of $ 5.00 per share. The corporate tax rate
Leviafan [203]

Answer:

$4.55

Explanation:

The corporate tax rate is applied to the net income, not the dividends

And the personal tax rate is applied to non-dividends income so it is not relevant here.

The stockholder would receive $5.00 before taxes. and it will pay 15% for this in taxes.

$5 x 15% = $0.45 dividend taxes

after tax $5 - $0.45 = $4.55

5 0
3 years ago
If Bob and Mike were analyzing how they motivate their employees in terms of ERG theory, which of the following would be true
JulijaS [17]

Bob and Mike should learn from seminars how to meet an employee's growing need, in terms of greater work participation or more pay.

<h3 /><h3>What is ERG theory?</h3>

It is a psychological theory about motivation, being recognized as a theory similar to Maslow's hierarchy of needs. In the ERG theory, the author Aldefer refers to motivation as the set of needs that are achieved simultaneously, the levels of needs being:

  • Existence
  • Relationship
  • Growth

Therefore, meeting the set of needs defined by the ERG theory can be positive for creating an organizational culture focused on the growth and development of employee capabilities.

Find out more about ERG theory here:

brainly.com/question/14276848

#SPJ1

8 0
2 years ago
Researchers at shipping giant Federal Express want to study delivery patterns and their relationship to customer complaints. Fed
Aleks04 [339]

<u>Full question:</u>

Researchers at shipping giant Federal Express want to study delivery patterns and their relationship to customer complaints. Federal Express uses a system that electronically tracks packages from the time a label is printed until it is delivered and a customer completes a satisfaction survey. Researchers could access this data by using _____.

A. Content Analysis

B. Bar codes

C. Field editing

D. Voice Recognition

E. None of the above

<u>Answer:</u>

Researchers could access this data by using Bar codes

<h3><u>Explanation:</u></h3>

Federal Express employs various barcodes on their shipping tags.  Federal Express SuperTracker handheld barcode scanner, prime preceded in 1986. The SuperTracker is a significant component of FedEx’s Consumers, Operations, and Services Master Online System handled to track parcels and authenticate distributions.

Rendering data about a package’s position, state, and action enhanced an essential component of delivery firms, with every significant carrier completing a package tracking system. Customer representatives, dispatchers, and distributing personnel practice the SuperTracker to scan barcodes on units as they pass by the Federal Express system.

7 0
3 years ago
Why is a business plan considered a living document?
steposvetlana [31]

Answer:

Explanation:

A Living Document. A business plan is often referred to as a “living document”. This is because a these plans are constantly changing. Whenever new developments in competition, marketing tools, the legal factors which relate to an industry, or others change a business plan must be updated so as to keep relevant.

3 0
3 years ago
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