Julie's X-Ray Company paid $2. 00 per share in common stock dividends last year. The company's policy is to allow its dividend to grow at 5 percent for 4 years and then the rate of growth changes to 3 percent per year from year five and on. What is the value of the stock if the required rate of return is 8 percent?
Answers
the stock's value is equal to the present value of all future dividends, the value of the stock is $46.13.
To calculate the value of the stock, we need to use the dividend discount model, which takes into account the present value of all future dividends. First, we need to calculate the dividends for the next four years. Using the 5% growth rate, we have:
Year 1: $2.00 x 1.05 = $2.10
Year 2: $2.10 x 1.05 = $2.21
Year 3: $2.21 x 1.05 = $2.32
Year 4: $2.32 x 1.05 = $2.43
After year four, the dividend growth rate changes to 3%. So, we can calculate the dividend for year five and beyond using this rate:
Year 5: $2.43 x 1.03 = $2.50
Year 6: $2.50 x 1.03 = $2.57
Year 7: $2.57 x 1.03 = $2.64
And so on.
Now, we can calculate the present value of all these dividends using the required rate of return of 8% and the formula:
PV = D/(1+r)^t
Where PV is the present value, D is the dividend, r is the required rate of return, and t is the number of years.
PV of dividends for years 1-4:
PV = $2.10/(1+0.08)^1 + $2.21/(1+0.08)^2 + $2.32/(1+0.08)^3 + $2.43/(1+0.08)^4
PV = $7.45
PV of dividends from year 5 and beyond:
PV = $2.50/(1+0.08)^5 + $2.57/(1+0.08)^6 + $2.64/(1+0.08)^7 + ...
PV = $38.68
Now we can add the two present values to get the total present value of all future dividends:
Total PV = $7.45 + $38.68 = $46.13
The stock is worth $46.13 because its value is equal to the present value of all future dividends.
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Related Questions
In pure competition, producers compete exclusively on the basis of
a. selling identical items.
b. advertising heavily to promote their good.
c. producing the unique features of their good.
d. focusing on maintaining a positive image.
Answers
Answer:
a. selling identical items.
Explanation:
A pure competition market is characterized by many firms selling a homogeneous product in a market with many buyers. There are no dominant suppliers; hence no single or group of sellers can influence the price. Pure competition is also the perfect competition.
The key characteristics of pure competition are
There are many buyers and sellersAll firms sell an identical productAll sellers are price takers. None can influence pricesThere is intense competition due to the high number of sellersEase of entry and exit from the market.A. selling identical items.
The members of an llc have considerable flexibility in managing and operating the business. how may the llc manage the firm?
Answers
The members of an LLC (Limited Liability Company) have considerable flexibility in managing and operating the business. As an LLC, the members have considerable flexibility in managing and operating the business.
They may choose to have a manager who is responsible for the day-to-day operations of the firm, or they may choose to have all members actively participate in the management of the business.
Additionally, the LLC may choose to operate as a member-managed or manager-managed entity, which impacts the level of involvement each member has in decision-making processes.
Overall, the members of an LLC have the freedom to structure the management of the firm in a way that best suits their needs and goals.
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is used extensively for consumer durables, whereas consumer convenience items are promoted mainly through
Answers
Personal selling is used extensively for consumer durables, such as home appliances, automobiles, and houses, whereas consumer convenience items are promoted mainly through advertising and sales promotion
Consumer durables are products that are expected to last a long time, such as refrigerators, televisions, and washing machines. These items are often promoted through advertising campaigns that highlight their features, quality, and durability.
On the other hand, consumer convenience items are products that are meant to be consumed quickly or used for a short period of time, such as food and personal care items. These items are typically promoted through strategies like discounts, coupons, and product placement in stores.
1. Consumer durables are long-lasting products like refrigerators and TVs.
2. They are promoted through advertising campaigns that highlight their features and durability.
3. Consumer convenience items are products meant for quick consumption or short-term use.
4. They are promoted through strategies like discounts, coupons, and product placement.
5. The promotion of consumer durables focuses on quality, while convenience items emphasize affordability and convenience.
In summary, consumer durables are extensively promoted through personal selling, while consumer convenience items are primarily promoted through strategies that focus on convenience and affordability.
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Complete question;_________ is used extensively for consumer durables, such as home appliances, automobiles, and houses, whereas consumer convenience items are promoted mainly through advertising and sales promotion
The sides of a triangle measure 4, 6, and 7. If the shortest side of a similar triangle is 12, what is the perimeter of the larger triangle?
Answers
Answer:
51
Explanation:
12 divided by 4 is 3 so we'll multiply all of the smaller triangle by 3.
4 x 3 = 12
6 x 3 = 18
7 x 3 = 21
12 + 18 + 21 = 51
a.
The amount of money in a savings account is an example of which of the following?
investment asset
b. liquid asset
C. long term asset
d. use asset
Please select the best answer from the choices provided
A
B
O O OO
С
Answers
Answer:
I do not understand the question. is "a" the question? if not then what is.
On 3/1/X1 Landlord Co. received a $36,000 cash payment from Renter Co. to pay for a total of 17 months, starting in the current month. How much revenue should Landlord Co. recognize in the year ending 12/31/X1? Round your answer to the nearest penny.
Answers
Answer: $21177
Explanation:
First and foremost, we should note that since the revenue that Landlord Co. wants to recognize in the year ending 12/31/X1 will be for a period of 10 months that is, from 1st of March to 31st of December.
Therefore, the revenue that Landlord Co. should recognize in the year ending 12/31/X1 will be:
= $36000 × 10/17
= $21176.471
= $21177
The following are examples of the functions of an office.
a. Visions and responsibility
b. Aims and profits
c. Production and preservation of data
d. Customers and responsibility
Answers
Answer:
?
Explanation:
?
VOTE TOM NOOK FOR PRESIDENT FOR 2024
Answers
:0
yas I will vote him!
lol
wait..no! He will just take our money. My answer is a maybe.
when the herfindahl-hirschman index (hhi) equals , there are numerous, infinitesimally small firms in the industry.
Answers
When the Herfindahl-Hirschman Index (HHI) equals 0, it indicates that there are numerous, infinitesimally small firms in the industry.
The HHI is a measure of market concentration used to assess the level of competition in a market or industry. It is calculated by summing the squared market shares of all the firms in the market. The resulting value ranges from 0 to 10,000, with higher values indicating higher concentration and lower levels of competition. When the HHI equals 0, it means that each firm in the industry has an extremely small market share, indicating a fragmented market with a large number of very small firms. This suggests a highly competitive market structure with no dominant players and a greater likelihood of price competition and market entry.
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2. Which type of work — a job or a career — do you think demands more emotional energy, and why?
Answers
Answer:
doctor
Explanation:
Making sure everyone is well taken care of and prescribed the right medication
Both jobs and careers can demand emotional energy, but the level of emotional energy required may vary.
What is a jobA job is typically short-term and may not provide a strong sense of purpose, leading to a lower emotional investment. On the other hand, a career involves long-term goals and personal development, leading to a deeper commitment and sense of purpose, which can require a higher level of emotional energy.
Individual circumstances, job responsibilities, and personal motivations can also influence the emotional energy demanded by a job or career. Ultimately, emotional energy is an important consideration in both professional pursuits, as it impacts job satisfaction, motivation, and overall well-being.
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What is your current role as a team member either at work, school, family, or sports? How will that role change in the future?
PLEASE ANSWER
Answers
Question 8 of 10
Checking account A charges a monthly service fee of $20 and a wire transfer
fee of $3, while checking account B charges a monthly service fee of $30 and
a wire transfer fee of $2. How many transfers would a person have to have for
the two accounts to cost the same?
OA. O
OB. 10
OC. 21
OD. 31
SUBMIT
Answers
The number of transfers that a person would have to make for the two accounts to cost the same would be B. 10 transfers
How to find the number of transfers ?The total cost for Checking account A, given x transfers would be:
= Monthly service fee + Wire transfer fee * x
= 20 + 3x
The total cost for Checking account B in this same manner is:
= 30 + 2 x
The number of transfers required for the cost to be the same would be:
20 + 3x = 30 + 2x
3x - 2x = 30 - 20
x = 10 transfers
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Explain how famous sporting events can benefit a country's economy and the businesses.
Answers
Hope this helps! :)
a price variance is the difference between the ______.
Answers
A price variance is the difference between the actual price and the standard price multiplied by the actual amount of the input.
Price variance is usually caused by some some factors such as changes in
the demand and supply of goods, the bargaining power of the customer and also the quantity of items ordered at that point in time.
It is used in budget allocations to determine the estimated prices of goods
and services in order to prevent shortage of the funds allocated.
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Select the correct answer.
What effect does inflation have on the prices of goods and services?
OA.
Prices decrease.
OB.
Prices double.
Ос. .
Prices increase.
OD
Prices stay the same.
Answers
Answer:
Prices increase, C
Explanation:
Inflation is when the value of a dollar, or other currency type, drops. This happens most commonly when more money is being printed. The more there is, the less it is worth. This causes prices to increase.
Hope this helps
Answer:
A
Explanation:
if inflation of SUPPLIES then price will decrease.
If inflation of MONEY then yea the price would rise.
Question 13 of 20
Which of the following most accurately describes the meaning of "human
resources"?
A. People who add value to a business and get tasks done
B. People who are skilled at using business tools
O c. People who succeed in business after initial failure
D. People who start businesses and then sell them
Answers
Answer:
The answer is (A)
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In
, people invest money in a company in exchange for the company’s
.
Answers
Answer:
In equity crowdfunding, people invest money in a company in exchange for the company’s shares
Explanation:
Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.
Startups and early-stage companies use this method to raise capital.
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
Answers
The management of Unter Corporation is considering an investment with the following cash flows:
Year 1: $50,000
Year 2: $70,000
Year 3: $80,000
Year 4: $90,000
Year 5: $100,000
To assess the investment's attractiveness, the management should evaluate its potential return and the time value of money. One approach is to calculate the investment's net present value (NPV), which considers the discounted value of future cash flows.
Assuming a discount rate of 10%, the present value (PV) of each cash flow can be calculated using the formula: PV = CF / (1+r)^n, where CF is the cash flow, r is the discount rate, and n is the number of years.
Calculating the PV of each cash flow:
PV1 = $50,000 / (1+0.10)^1 = $45,454.55
PV2 = $70,000 / (1+0.10)^2 = $57,851.24
PV3 = $80,000 / (1+0.10)^3 = $62,809.92
PV4 = $90,000 / (1+0.10)^4 = $66,115.70
PV5 = $100,000 / (1+0.10)^5 = $67,488.71
Summing up the present values:
NPV = PV1 + PV2 + PV3 + PV4 + PV5 = $300,720.12
The calculated NPV of $300,720.12 indicates that the investment is financially attractive. A positive NPV implies that the investment's expected returns exceed the initial cost, considering the time value of money. Therefore, Unter Corporation's management should proceed with the investment, as it is likely to generate a favorable return and contribute to the company's financial growth. However, it is crucial to consider other factors such as market conditions, competition, and strategic alignment before making a final decision.
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if india traded textiles with the united states in exchange for corn products, this would be an example of which form of countertrade?
Answers
The United States government will profit from the import taxes levied on textiles from India.
If trade obstacles are removed, the United States will suffer. The United States will suffer from the removal of trade barriers because a flood of Indian textiles will be poured into the nation, stunting the development of domestic textile manufacturing enterprises. India has a competitive advantage over the US in the production of textiles since they are in higher demand than aircraft, which are only seldom needed. The United States government will profit from the import taxes levied on textiles from India. Since India will produce textiles at the lowest cost per unit and flood the USA with reasonably priced, high-quality apparel, the government will benefit greatly from import tariffs.
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29.What are some potential difficulties that you might encounter when doing business in the Chinese market?
30.What actions could your company take to help improve your opportunities for success?
Answers
Adaptation and localization of Business.
Intellectual Property Right (IPR)
Logistics Challenge.
Build Trust.
Sales & Distribution.
Increasingly competitive market.
Fake marketing challenge.
Horizontal, vertical, and related acquisitions to build market power: Group of answer choices are likely to undergo regulatory review by various governmental entities. are rarely permitted to occur across international borders. concentrate on capturing value at more than one stage in the value chain. typically involve a firm purchasing one of its suppliers or distributors.
Answers
Answer:
likely to undergo regulatory review by various governmental entities.
Explanation:
A horizontal acquisition refers to the business strategy where the one company could take the other company that operates at the similar level while on the other hand the vertical integration is the integration where the business operation could be acquired with the similar kind of production
So these types of acquisition should established the market power through which the regulatory review could be undergone via a different government entities
What documents will you include in your portfolio?
How will creating a portfolio benefit you with future employment?
Answers
Answer:
./Table of Contents
./Career and professional development goals, tailored for each ./interviewer
./Work philosophy statement; personal mission statement
./List of areas of expertise
./Works in progress (activities and projects)
./Samples of your best work from academic, employment, and internship settings
./Resume, references, transcripts, letters of recommendation
./Evaluations from work/volunteer experiences, agendas of meetings you conducted
./Certificates, diplomas, licenses, awards, letters of appreciation you received
./Records of community service/volunteer work
./Professional memberships and service activities
./Work reports or excerpts from term papers
./Grants or proposals you wrote
./Newspaper clippings featuring you, media clips of your work, promotional materials you designed
./Photographs of you in a professional setting
./Printouts/links to websites, web pages, or blogs you created
./Certificates of attendance from seminars or workshops
./Documentation of leadership experience
this will help you greatly in the future when it comes to people looking to higher you as it shows your skills/weaknesses
Explanation:
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midge feels that the price of gold is going to fall because inflation is on the decline. to profit from her prediction, assuming she is correct, midge should
Answers
Yes, Midge should sell short a futures contract today to profit from her prediction that the price of gold will fall due to declining inflation.
Selling short a futures contract involves selling a commodity, such as gold, that the seller does not currently own. The seller agrees to deliver the commodity at a future date, anticipating that its price will decline. If Midge believes that the price of gold will fall due to declining inflation, selling short a gold futures contract would allow her to profit from this prediction.
By selling short a futures contract, Midge can take advantage of falling gold prices. If the price does indeed decrease as she predicts, she can buy back the futures contract at a lower price and make a profit on the difference. This strategy allows Midge to benefit from her anticipation of declining inflation and the subsequent impact on the price of gold.
However, it's important to note that selling short carries risks. If Midge's prediction is incorrect and the price of gold rises instead, she could potentially incur losses. Therefore, careful analysis and consideration of market conditions and trends are crucial when engaging in futures trading to maximize the chances of making profitable trades.
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The Complete question is
Midge feels that the price of gold is going to fall because inflation is on the decline. To profit from her prediction, assuming she is correct, Midge should sell short a futures contract today.
HELPP on question 10
Answers
Answer:
land?
Explanation:
Answer:
Land
Explanation:
management uses a(n) ______ budget to establish the standard overhead rate.
Answers
Answer:
Explanation:
Management uses a fixed overhead budget to establish the standard overhead rate. This is because fixed overhead costs are relatively stable and predictable, making it easier to set a standard rate for allocating these costs to products or services. The fixed overhead budget typically includes expenses such as rent, depreciation, and insurance for the production facility, as well as salaries for managers and support staff. By dividing the total budgeted fixed overhead costs by the expected level of activity, management can establish a standard overhead rate for each unit of output.
Management uses a predetermined budget to establish the standard overhead rate. This rate is used to allocate indirect costs to products or services based on estimated levels of activity.
A predetermined budget is a projection of anticipated expenses and revenues for a future period. By using this budget to establish the standard overhead rate, management can allocate indirect costs to products or services based on estimated levels of activity. Indirect costs, such as rent, utilities, and salaries for support staff, cannot be easily traced to specific products or services. The standard overhead rate is calculated by dividing estimated total indirect costs by estimated total activity. Once the standard overhead rate is established, it can be used to allocate indirect costs to products or services based on actual levels of activity. This allows management to determine the true cost of producing each product or service.
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homework libABC Inc. uses a machine that can produce 95 cranks per hour. The firm operates 9 hours per day, six days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 90% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 80%. What is the expected weekly output of cranks for this company
Answers
The expected weekly cranks output should be 3,693.60.
The following formula should be applied:
= Number of cranks produced per hour × number of hours operated per day × number of days per week × expected machine running percentage × efficiency level
= 95 × 9 × 6 × 90% × 80%
= 3,693.60
Therefore we can conclude that The expected weekly cranks output should be 3,693.60.
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As described in the Understanding Economic Thresholds Activate Your Learning, which of the following is true of the potato leafhopper? it is chewing insect and is the major insect pest of plants in the Solanaceae family it is a sucking insect that undergoes gradual or incomplete metamorphosis it is an insect that is resistant to most pesticides O it is a beneficial insect that promotes decomposition of organic matter in the soil The economic threshold in integrated pest management means which of the following? the pest population has caused significant economic loss & it isn't cost effective to control it the cost of pest control is prohibitive, so action should not be taken to control the pest the size of the pest population is significant and it is cost effective to control it natural enemies present are sufficient to control the pest population
Answers
It is a sucking insect that undergoes gradual or incomplete metamorphosis. The economic threshold in integrated pest management means that the size of the pest population is significant and it is cost-effective to control it.
It is the point where the pest population has caused significant economic loss and it is cost-effective to control it.What is meant by the term "economic threshold" in pest management?The economic threshold is a pest population density that will cause economic loss equal to the cost of control measures if not prevented.
This is used to determine whether pest control measures should be applied or not. In IPM, economic thresholds are used to establish when the cost of pest control equals the cost of expected losses from the pest damage. Economic thresholds are useful in avoiding unnecessary pesticide use when damage from pests is minimal and the cost of management may be higher than the damage caused by the pest.
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When looking at market structure, _________________ and _____________________will lie at opposite ends of the concentration continuum.
Answers
When looking at market structure, perfect competition, and monopoly will lie at opposite ends of the concentration continuum.
In perfect competition, there are many small firms producing identical products with no barriers to entry or exit. Each firm has a very small market share, and no individual firm can influence the market price. This results in a situation where firms have to accept the market price and cannot charge a higher price.
On the other hand, in a monopoly, there is only one firm in the industry, and it has complete control over the supply of the product. The firm faces no competition, and therefore, it can charge a higher price for the product as there are no close substitutes.
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Which of the following statements is true?
Answers
Answer:
True
Explanation:
effective economic demand requires