abc energy has just paid an annual dividend of $3 per share. if the expected growth rate for abc is 10%, and your required rate of return is 16%, how much are you willing to pay for this stock?

Answers

Answer 1

You should be willing to pay $55 for this stock if the predicted growth rate for ABC is 10% and your necessary rate of return is 16%.

The constant growth dividend discount model is a stock valuation method. This model assumes that dividends will increase indefinitely at a fixed rate (known as the growth rate). In this problem, we can use this model to figure out how much the stock is worth.

We know that the stock pays an annual dividend of $3 per share, and that the expected growth rate is 10%. The required rate of return is 16%.

To find the current stock price, we can use the following formula:

Price = Dividend / (Required Rate of Return - Growth Rate)

First, we need to calculate the expected dividend one year from now using the growth rate and the current dividend. The expected dividend is $3 x (1 + 0.10) = $3.30.

Next, we can plug this into the formula and solve for the price:

Price = $3.30 / (0.16 - 0.10)

Price = $3.30 / 0.06

Price = $55

Therefore, if the expected growth rate for ABC is 10%, and your required rate of return is 16%, you should be willing to pay $55 for this stock.

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Related Questions

for which of the following audit tests would an auditor most likely use attributes sampling?

Answers

An auditor would most likely utilise attributes sampling when checking employee time cards for necessary supervisor permission during audit testing.

"Independent inspection of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is performed with a view to offer an opinion thereon" is what is meant by an audit. The purpose of auditing is to make sure that a company is keeping its books of accounts in accordance with the law. Auditors analyse the claims made in front of them, gather supporting data, then evaluate the claims in their auditing report. Various stakeholders can receive third-party assurance from audits that the subject matter is free of material misrepresentation.

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A grid that combines an employee's performance rating with his or her position within a pay range so as to determine the size and frequency of pay increases is known as the ______ grid.

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A grid that combines an employee's performance rating with his or her position within a pay range so as to determine the size and frequency of pay increases is known as the merit increase grid.

What is the merit increase grid?

This grid is known to be a mathematical grid. It is one that professionals that compensates work use to effectively administer increases in salaries for the workers that work there.

The calculation on the grid is done through the use of small percentages from a salary.

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You are taking a $5000 loan. You will pay it back in four equal amounts, paid every 6 months starting 5 years from now. The interest rate is 12% compounded semiannually. Calculate: The effective interest rate The amount of each semiannual payment The total interest paid

Answers

Answer:

Following are the solution to the given point:

Explanation:

Calculating the value of the effective interest rate:

Formula:

$\text{Effective interest rate} =\frac{\text{annual nominal rate of interest}}{\text{compound year}}$

$=\frac{12}{2} \\\\ =6\%$

Calculating the value of Effective annual rate of interest:

$=(1+ \text{The effective rate})^{\text{(compound number )}} -1$

$=(1+0.06)^2 -1\\\\=(1.06)^2 -1\\\\=1.1236-1\\\\=0.1236\\\\=12.36 \%$

Calculating the Amount in each semiannual payment:

$= 5000 \times (\frac{F}{P}, 6\% ,9) \times (\frac{A}{P}, 6\%,4)\\\\= 5000 \times 1.689479 \times 0.288591\\\\= 2437.85$

Calculating the value of the total interest paid:

$= 2437.85 \times 4 - 5000\\\\= 9751.40-5000\\\\ = 4751.40$

using a price skimming strategy, apple stakes out a price and then maintains and defends that price by significantly increasing the value of their products in future iterations. apple gives priority to profits over market share, making people starve for the new upgraded product. apple's price skimming strategy is most often used for a new product when

Answers

Apple's price skimming strategy is most often used for a new product when the product is perceived by the consumer as having unique advantages.

What is the price skimming strategy?

It corresponds to a technique used by companies to raise the price of a new product on the market while it is still the only one available and, after the entry of new competing products, reduce the price, changing the consumer's perception.

Therefore, the price skimming strategy helps in the psychosocial perception of the target public of a company that chooses to consume a product of a brand in relation to its competitors because it is perceived as having greater value and having a competitive price.

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Which of the following gas satisfaction measures wWhich of the following gas satisfaction measures would Be this for a company to use if they want to estimate how many customers might recommend them to their friends?

CES
CSAT
PSC
NPS

Answers

Answer:

Simple Random Sample

Explanation:

The revenue (in dollars) from the sale of x units of a certain product can be described by R(x)=100x−0.09x
2
. Find the instantaneous rate of change of the marginal revenue. R
′′
(x)=

Answers

The instantaneous rate of change of the marginal revenue at x = 150 units is 73 dollars.

The instantaneous rate of change of the marginal revenue is found by taking the second derivative of the revenue function, R(x).

To find the second derivative, we need to differentiate the revenue function, R(x), twice with respect to x.

Given that R(x) = 100x - 0.09x^2, let's find the first derivative, R'(x), using the power rule of differentiation:

R'(x) = 100 - 0.18x

Now, let's find the second derivative, R''(x), by differentiating R'(x) with respect to x:

R''(x) = -0.18

The second derivative of the revenue function, R''(x), is -0.18.

This means that the instantaneous rate of change of the marginal revenue is constant and equal to -0.18. This indicates that the marginal revenue is decreasing at a constant rate of 0.18 dollars per unit.

To find the value of the marginal revenue at a specific value of x, you would substitute that value into the first derivative function, R'(x).

For example, if we want to find the marginal revenue at x = 150:

R'(150) = 100 - 0.18(150)
= 100 - 27
= 73

Therefore, the instantaneous rate of change of the marginal revenue at x = 150 units is 73 dollars.

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Which of the following are traits of successful entrepreneurs?
quits when he or she fails
doesn't make the same mistake twice
is self-assured
relies on everyone else to get the job done

Answers

Answer:

Self assured and doesn't make the same mistake twice

Explanation:

Hope this helps!

PILLAY MANUFACTURERS (PM) mutual agreement for work performed at night after 18:00 and before 6:00 the following day. Pillay manufacturers specialises in the manufacturing of fruit juice. Employees at PM have a normal rate. PM provided all black employees with learnerships and learning programmes. Black females are given opportunities to be included in shareholding in the business. Newly appointed employees were given access to the employment contract and were also inducted on different aspects. The induction programme included the following aspects: The tour of the premises, introduction to key people and immediate colleagues and a discussion of employee benefits. The business strives to set a code for ethical and effective leadership by the board of directors, by ensuring that all King Code principles are applied in all dealings. Employees have demonstrated some unprofessional business practices by taking extended lunch breaks to do their shopping. 1.1.1 PM needs to identify problems that affect their operations to make informed decisions. Brainstorming and force field analysis have been applied to enable them to solve complex business problems. Name TWO provisions of BCEA from the scenario above

Answers

Considering the scenario above, the two provisions of the BCEA would be:

The mutual agreement for night work after 6 pm and 6 am.The induction program that includes discussing employee benefits.What is the BCEA?

Corresponds to an acronym for Basic Conditions of Employment Act, which is a South African labor law, which aims to provide decent standards and rights for local workers. Some of its principles are related to:

Working hoursOvertimeAnnual leaveLicensesTermination of the employment contract

Therefore, BCEA is essential for labor regulation in South Africa, establishing rules on wages, child labor and other workers' rights.

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________ is the impact of currency exchange rate changes on the reported financial statements of a company. Group of answer choices Economic exposure Financial exposure Translation exposure Transaction exposure

Answers

Answer:

Im fairly sure the answer is Economic Exposure

You are told that the Sales for your firm is normally distributed with a mean of $450,000 and a standard deviation of $55,000. Which of the following statements do you NOT know is true? O Half of sales are greater than $450,000 O 68% of sales fall between $395,000 and $505.000 O The median and mode sales figure is $450,000 O There cannot be sales data of more than $1 million

Answers

The statement that we do not know is true is "Half of sales are greater than $450,000" as we are not given enough information to determine this statement.

We are told that the sales for a certain company is normally distributed with a mean of $450,000 and a standard deviation of $55,000. We need to figure out the statement that is false. Let us take the given statements one by one.

O Half of sales are greater than $450,000

This statement cannot be determined using the information provided as the mean is given to be $450,000 and this information is not sufficient to determine the statement.

O 68% of sales fall between $395,000 and $505,000

This is true. We know that a normal distribution with mean and standard deviation can be represented as follows:

mean ± 1SD = 68% of data is included.

Therefore, $395,000 and $505,000 are both 1 standard deviation away from the mean of $450,000. Hence 68% of sales fall between $395,000 and $505,000.

O The median and mode sales figure is $450,000

This is true.

Since the normal distribution is symmetrical, the median and mode will both be equal to the mean of $450,000.O There cannot be sales data of more than $1 million

This statement is not true. We are not given any information on an upper limit on sales, so this statement cannot be concluded.

Conclusion: Therefore, the statement that we do not know is true is "Half of sales are greater than $450,000" as we are not given enough information to determine this statement.

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who ever can give me five stars and like me i will do the same back

Answers

Answer:

I will give you 5 stars like me i will do the same back

The arithmetic average of 12 % , 15 % and 20 % is _________ .

Answers

The arithmetic average of 12%, 15%, and 20% is 0.157. 15.7% Option A

What is the arithmetic average?

To calculate the arithmetic mean or arithmetic average, which is also referred to simply as the mean or the average, the total sum of a set of numbers is typically divided by the total number of numbers in the set in the fields of mathematics and statistics. This process is used to arrive at the arithmetic mean or arithmetic average.

x=(0.12+0.15+0.20)/3

x=0.157

Answers

For this job analysis, I would use a combination of observation and interview techniques. Observation would allow me to directly observe the waste removal technician as they operate the truck and perform their duties.

This would provide me with valuable insight into the physical demands of the job, as well as any potential safety hazards that need to be considered.

Additionally, I would conduct interviews with the waste removal technician and their supervisor to gather information about the specific tasks and responsibilities of the job. This would help me to identify any necessary knowledge or skills required for the position, as well as any specific qualifications or certifications that may be needed.

Overall, this combination of observation and interview techniques would provide me with a comprehensive understanding of the waste removal technician position and help me to develop an accurate job description and job requirements for the role.

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1. Define the Clinical Diagnostic Model with and Example.
2. How Might you Use this Model as an Administrative Problem-Solving Approach.
3. How Can this Approach be Used to Define a Business Research Problem?
4. In your Opinion, How Far Might this Model be Extended to Larger Situations?

Answers

1) The Clinical Diagnostic Model is a framework used to identify and evaluate potential diagnoses based on symptoms and evidence.

2) The model can be used as an administrative problem-solving approach by applying systematic analysis and decision-making to address organizational challenges.

3) The approach can be used to define a business research problem by utilizing a structured process to identify research objectives and gather relevant data.

4) The extent to which this model can be extended to larger situations depends on the complexity and scope of the problem, but it can serve as a valuable framework for systematic analysis and decision-making.

The Clinical Diagnostic Model is a well-established framework used in the medical field to identify and evaluate potential diagnoses based on symptoms and evidence. It involves gathering information, conducting tests, and analyzing data to arrive at a comprehensive understanding of the patient's condition. This model can be applied as an administrative problem-solving approach by adopting a similar systematic analysis and decision-making process to address organizational challenges. By collecting relevant data, identifying the root causes of issues, and evaluating potential solutions, administrators can make informed decisions and take appropriate actions to resolve problems within the organization.

Furthermore, the Clinical Diagnostic Model can be used to define a business research problem by providing a structured approach to identify research objectives and gather relevant data. Businesses often face complex challenges that require systematic analysis and evidence-based decision-making. By applying the principles of the Clinical Diagnostic Model, researchers can identify the symptoms or issues at hand, collect and analyze relevant data, and draw conclusions to address the research problem effectively.

The extent to which this model can be extended to larger situations depends on the complexity and scope of the problem. While the Clinical Diagnostic Model is primarily used in the medical field, its principles of systematic analysis and evidence-based decision-making can be applied to various domains. However, it's important to consider the specific context and adapt the model accordingly to suit the needs of larger situations.

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explain socialism, capitalism and mixed economy with their features advantages and disadvantages

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Socialism is defined as the means of production that is owned by the state. Capitalism is a economic system in which private individuals or businesses own capital goods. A Mixed Economy is a system that combines aspects of both Capitalism and Socialism.

Alltech Company maintains a separate accounts receivable account for each customer. On June 18, Alltech provides $6,300 of services on account to customer Anthony and $1,200 of services on account to customer Walker. How will these two transactions affect the control and subsidiary accounts?

Answers

Answer:

B. The control account, Accounts Receivable, will be increased with a debit of $8 300

Explanation:

According to the given situation, in total, the Alltech company makes sales of 2, one for $6,300, and the other for $2,000. The total of sales will be computed by adding both sales that are $6,300 + $2,000 = $8300 will therefore be booked and control and receivables will be boosted with a debit of $8,300.

Therefore, the correct answer is B.

The government of Islandia, a small island nation, imports heating oil at a price of $2 per gallon and makes it available to citizens at a price of $1 per gallon. If Islandians demand curve for heating oil is given by P = 6 =Q, where P is the price per gallon in dollars and Q is the quantity in millions of gallons per year, how much economic surplus is lost as a result of the government's policy?

Answers

Economic surplus is gained rather than lost.

Economic Surplus:

Economic surplus is the sum of consumer surplus and producer surplus. It is also known as welfare surplus. Producer surplus occurs when the producer sells the goods for more than the lowest price they are willing to sell for. Consumer surplus occurs when the consumer pays less than the lowest price he is willing to pay for.

P = 6 = Q

It means that consumers purchase 6 million gallons of oil for a price of $ 6 per barrel. It means they are paying $1 for 1 million barrel.

Since, price = demand, thus at a price of $2 per barrel, consumers will still effectively pay $1 for each million barrel.

Quantity consumed at $1 per barrel = 1 million barrel

Quantity consumed at $2 per barrel = 2 million barrel

Economic surplus = (1/2) ($2 - $1) * (2 - 1) = $0.5 million gallon per year

Thus, economic surplus is gained rather than lost.

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The value of a 7 year lease that requires payments of $550 made at the beginning of every quarter is $12,900. What is the nominal interest rate compounded quarterly? Select the correct answer. No work needs to be shown. 5.46% 21.84% 6.89% 4.94%

Answers

The correct answer is a. The nominal interest rate compounded quarterly is 5.46%.

To determine the nominal interest rate compounded quarterly, we can use the present value formula for an ordinary annuity:

PV = $PMT * \frac{(1 - (1 + r)^{-n} }{r}$

where PV is the present value, PMT is the periodic payment, r is the interest rate per period, and n is the total number of periods.

Given that the present value (PV) is $12,900 and the quarterly payment (PMT) is $550, we can rearrange the formula to solve for the interest rate (r).

$12,900 = $$550 * \frac{(1 - (1 + r)^{-28} }{r}$

To find the nominal interest rate compounded quarterly, we need to solve this equation. Therefore the correct answer is 5.46%.

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What is an example of flame

Answers

Answer:

The definition of a flame is burning gas, fire or blaze, or a strong passion. An example of a flame is a fire from a lighter. An example of a flame is an intense desire for a particular person.

Explanation:

Answer:

flame is burning gas, fire or blaze, or a strong passion. An example of a flame is a fire from a lighter. An example of a flame is an intense desire for a particular person.

Flaming is the act of posting or sending offensive messages over the Internet. These messages, called "flames," may be posted within online discussion forums or newsgroups, or sent via e-mail or instant messaging programs. ... Flaming often leads to the trading of insults between members within a certain forum.

Explanation:

Help me
Can any one answer me these

Answers

Wait I also need help on this one of someone can help me too

The management of Asteria Inc. is studying the financial reports and statements of the company for the current accounting period. Which
accounting head is a part of an off-balance sheet item?
A.
copyrights
В.
bank loan
C.
prepaid office rent
D.
operating lease

Answers

Answer:

В. bank loan

Explanation:

A balance sheet shows the total net worth of a business at the end of a financial year. It shows the assets of a business on one side and equity and liabilities on the other.

A balance shows the assets of a business and how they have been financed. On the liabilities, the balance sheet will indicate the short term and long term liabilities. A bank loan represents money obtained from the banks on credit. Bank loan will be a subheading on the liabilities side, especially if the business has loans from different banks.

Answer:

Its D operating Lease

Explanation:

Should citizens participating in
criminal trials should have some requirements such as someone who
has a degree? Or someone who makes at least $20,000 per year? Why
or why not?

Answers

Citizens participating in criminal trials should not be required to have a degree or make a certain amount of money per year. This is because such requirements would create inequalities in the justice system and violate the principle of equal protection under the law that is enshrined in the US Constitution.

First, requiring citizens to have a degree in order to participate in criminal trials would discriminate against those who cannot afford higher education. This would create an unfair advantage for those who are more affluent and better-educated, and it would prevent many people from serving on juries or as witnesses.

Secondly, requiring citizens to make a certain amount of money per year would also create inequalities. Poorer citizens would be excluded from participating in criminal trials, which would violate their rights to equal protection under the law. Moreover, wealth is not necessarily a measure of a person's ability to serve as a juror or a witness. A person's income level does not necessarily correlate with their intelligence, education, or integrity

.In conclusion,citizens should not be required to have a degree or make a certain amount of money per year in order to participate in criminal trials. Doing so would violate the principle of equal protection under the law, create inequalities, and prevent many people from participating in the justice system.

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performance evaluation is a term for assessing how well a money manager achieves a balance between high returns and what?

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Performance evaluation is a term for assessing how well a money manager achieves a balance between high returns and acceptable risks.

What is performance evaluation?

Performance evaluation is the practice of objectively evaluating an employee's performance. It is often referred to as a performance review or performance appraisal.

In order to calibrate training, assess salary, and determine whether a person is eligible for development, it is extremely helpful to understand each individual's capabilities and limitations.

What makes performance evaluation so crucial?

You can simply learn about the good work and efforts of the top performers with the aid of employee performance evaluations. You'll be able to reward employees when they do jobs correctly. Positive reinforcement is essential for raising employee morale at work and recognizing their hard work.

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Exchanging a good or service for money is called

Answers

Answer:

The meaning of the word is Exchange

Explanation:

The answer to that is called barter

On December 31, 2014, Carry On Fitness has adjusted balances of $800,000 in Accounts Receivable and $55,000 in Allowance for Doubtful Accounts. On January 2, 2015, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $10,000.
Assume that on February 2, 2015, Carry On Fitness received a payment of $500 from one of the customers whose balance had been written off. Prepare the journal entries to record this transaction. If there is not an answer type no journal entry.
1. a) Record the reversal of a customer account previously written off in the amount of $500.
b) Record the receipt of cash of $500 from the customer.

Answers

When a company has accounts receivable (money owed to them by customers for goods or services sold), they must also have an allowance for doubtful accounts.

This is a contra-asset account that represents the estimated amount of accounts receivable that the company expects will not be collected. The allowance is based on historical data, industry trends, and other factors that may affect the collectability of the accounts receivable. In the case of Carry On Fitness, they had an accounts receivable balance of $800,000 and an allowance for doubtful accounts of $55,000 at the end of the year 2014. This means that they estimated that $55,000 of their accounts receivable may not be collected. On January 2, 2015, they learned that some customer accounts were not collectible, so they authorized a write-off of $10,000. This means that they no longer expect to collect $10,000 from those customers, and they must adjust their accounts receivable and allowance for doubtful accounts accordingly. The journal entry to record the write-off on January 2, 2015, would be:

a) To reverse the write-off of $500:

Accounts Receivable - Customer Name $500

Allowance for Doubtful Accounts $500

b) To record the receipt of cash of $500:

Cash $500

Accounts Receivable - Customer Name $500

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Which of the following is not a potential effect of inaccurate data on employee time cards?
A) increased labor expenses
B) erroneous labor expense reports
C) damaged employee morale
D) inaccurate calculation of overhead costs

Answers

C) damaged employee morale. Inaccurate data on employee time cards can have significant consequences for businesses.

One of the potential effects is an increase in labor expenses, as the company may be paying employees for hours that they did not work or overtime that they are not entitled to. This can also lead to erroneous labor expense reports, which can make it difficult for management to make informed decisions and allocate resources effectively.

Another potential consequence of inaccurate data on employee time cards is inaccurate calculation of overhead costs. This can affect the accuracy of budget forecasts and lead to financial instability. Additionally, inaccurate time cards can damage employee morale if employees feel that they are not being accurately compensated for their work or if they feel that their colleagues are taking advantage of the system.

To mitigate the risks associated with inaccurate data on employee time cards, businesses should establish clear policies and procedures for recording and verifying employee time. This may involve implementing time tracking software, conducting regular audits of time card data, and training employees on proper time recording procedures. By taking these steps, businesses can improve the accuracy of their financial records and ensure that employees are being compensated fairly and accurately for their work.

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Larry lives in a rundown house next to the lot that Gus has claimed and is tired of the incessant noise coming from Gus's camper, including loud music and TV. In addition, Gus hosts crazy dance parties outside of his camper every night. This has been going on for three months, and Larry can't take it any longer. Gus's activities represent _____. trespass trespass nuisance nuisance negligence negligence fraud

Answers

Answer:

nuisance

Explanation:

state law of diminishing returns

Answers

Answer:

see below

Explanation:

The law of diminishing marginal returns indicates that in every production process, adding one more input while holding the others constant will result in the overall decrease in output.

According to this law, adding one more production unit diminishes the marginal returns, and the average production cost increases. Marginal returns refer to the benefits associated with the production of an extra unit.

The gain derived from the use of more input while keeping all other factor constant decreases as production increases. For example, employing more workers while all other variables remain constant will result in reduced labor productivity.

The skills section of the resume should include skills that you've gained both in
school and hobbies but should be skills that are
to what the
employer is looking for.
unrelated
opposite
different
related

Answers

The correct answer is D. Related

Explanation:

When reading the résumé of a candidate, the employer always expects the candidate has skills and knowledge directly related to the job offer, because in most cases, these show the candidate will be able to adapt and work efficiently in the new job. For example, if an employer is looking for an architect the employer is more likely to select a candidate with experience and knowledge in the area. Due to this, every time you apply to a job offer your résumé should include skills that are directly related to the job offer or what the employer is looking for as this gives you more possibilities of being hired.

which output device is most appropriate for post-production editing?responsesdigital projectordigital projector monitormonitor camera in lcd view

Answers

Digital projectors and LCD view cameras are not as suitable due to their lower image quality and color accuracy.

The most appropriate output device for post-production editing would be a high-quality monitor specifically designed for video editing. This allows for accurate color grading and detail assessment during the editing process. While a digital projector can be used for reviewing the final production, it may not provide the same level of precision as a dedicated editing monitor. A camera in LCD view would not be an output device, as it is used for capturing footage rather than displaying it.

For post-production editing, the most appropriate output device is a monitor. Monitors provide accurate color representation and high resolution, which are essential for making precise adjustments during the editing process. Digital projectors and LCD view cameras are not as suitable due to their lower image quality and color accuracy.

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