When the required rate of return for such stocks is 20 percent, the current price of the stock is 15.63.
<h3>What is stock?</h3>
Stock in finance refers to all of the shares that make up a corporation's or company's ownership. A single share of stock represents fractional ownership of the corporation based on the total number of shares. A stock is a broad term that refers to any company's ownership certificates.
The price will be calculated thus:
D1 = 1.25
D2 = 1.25 × (11+.40)
D3 = 1.25 × (1+.40) × (1+.20)
D4 = 1.25 × (1+.40) × (1+.20)^2
P4 = 1.25 × (1+.40) × (1+.20)^2 × (1+.08)/(.20 - .08)
Note that d is the dividend.
Current Stock Price = 1.25/(1+.20)^1 + 1.25*(1+.40)/(1+.20)^2 + 1.25*(1+.40)*(1+.20)/(1+.20)^3 + 1.25*(1+.40)*(1+.20)^2/(1+.20)^4 + 1.25*(1+.40)*(1+.20)^2*(1+.08)/(.20 - .08)*(1+.20)^4 = 15.625 or 15.63
Therefore, the current price is 15.63.
Learn more about stock on:
brainly.com/question/25818989
#SPJ1
<span>With eBooks, regular paper books will not have to be printed thus saving the environment by reducing the numbers trees cutted for the sake of production of paper. It will also reduce the costs required for purchasing normal papers. Inks will be saved as well saving costs on them. EBooks can be accessible anywhere and anytime, there is no need to carry around a heavy book when you can access it through your smart phone or tablet. The world is going digital, so why not books!</span>
Answer:
$359,000
Explanation:
Total Bond issue costs can be calculated by adding all the cost related to the issue of bond.
Bond Certificate printing cost = $24,000
Legal fees paid = $90,000
CPA registration = $15,000
Underwriting Commission = $230,000
Total Bond issue costs = $359,000
After adding all the cost we reached at 359,000 and its closest to Option A 360,000
Option A
Companies such as Motorola and Toyota have made significant contributions to improving quality in productive systems with their introduction and promotion of concepts such as: Lean and Six Sigma
<h3><u>
Explanation:</u></h3>
Lean Six Sigma is a process of advancement methodology intended to reduce problems, eliminate waste and incompetence, and enhance working conditions to present a better acknowledgment of customers’ demands. It unites the instruments, techniques, and sources of Lean and Six Sigma into an individual big and robust methodology for promoting your organization’s services.
Lean Six Sigma’s team-oriented method has demonstrated results in maximizing ability and dramatically enhancing profitability for businesses throughout the world. Lean opinions accommodate to decrease or discharge process wastes. Six Sigma concentrates on difference - decrease in the process.
The U.S. dollar is fiat money, as are the euro and many other major world currencies. This approach differs from money whose value is underpinned by some physical good such as gold or silver, called commodity money. The United States, for example, used a gold standard for most of the late 19th and early 20th century
