Red Sun Rising just paid a dividend of $2.22 per share. The company said that it will increase the dividend by 20 percent and 15 percent over the next two years, respectively. After that, the company is expected to increase its annua dividend at 3.8 percent. If the required return is 10.8 percent, what is the stock price today?
Answers
The stock price of Red Sun Rising today can be calculated using the dividend discount model. The dividend is expected to increase by 20% in the first year and an additional 15% in the second year.
Afterward, the annual dividend growth rate is expected to be 3.8%. Considering a required return of 10.8%, the current stock price can be determined.
To calculate the stock price, we can use the dividend discount model (DDM), which values a stock based on the present value of its future dividends. The formula for the DDM is:
Stock Price = Dividend / (Required Return - Dividend Growth Rate)
Let's calculate the dividends for the next three years. The initial dividend is $2.22 per share. In the first year, the dividend will increase by 20%:
Dividend in Year 1 = $2.22 * (1 + 20%) = $2.22 * 1.2 = $2.664
In the second year, the dividend will increase by an additional 15%:
Dividend in Year 2 = $2.664 * (1 + 15%) = $2.664 * 1.15 = $3.0626
From the third year onward, the dividend is expected to grow at a rate of 3.8% annually. To calculate the future dividend in year 3, we need to determine the dividend in year 2 and apply the growth rate:
Dividend in Year 3 = $3.0626 * (1 + 3.8%) = $3.0626 * 1.038 = $3.1781
Now, we can calculate the stock price using the DDM formula. The required return is 10.8%, and the dividend growth rate is 3.8%:
Stock Price = $2.664 / (0.108 - 0.038) + $3.0626 / (0.108 - 0.038) + $3.1781 / (0.108 - 0.038)
Stock Price = $2.664 / 0.07 + $3.0626 / 0.07 + $3.1781 / 0.07
Stock Price = $38.0571 + $43.7514 + $45.4014
Stock Price = $127.2099
Therefore, the stock price of Red Sun Rising today is approximately $127.21 per share.
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Related Questions
Discuss any four ways in which Specialization has
improved the economic development of Nigeria
Answers
Answer:
Specialization has helped in these four ways:
1. Has created economics of scale in Nigeria, which improve economic efficiency and increase output while reducing average costs at the same time.
2. Has improved the agricultural sector, which continues to be very important for the Nigerian economy.
3. Has helped bring the electrification of the country.
4. Has helped raise the standard of living in the country, because in general terms, the larger the economy, the higher the standard of living.
A competitive firm operating in the short run is maximizing profits and just breaking even. Its costs include a monthly license fee of $100 that is imposed by the state and must be paid for as long as the firm is in existence. The license fee is now raised to $150. To continue to maximize profits in the short run, the firm should: Question 2 options: a) increase output. b) increase price. c) not change output. d) reduce output.
Answers
Answer:
C
Explanation:
The short run is a period where all factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down.
In the short run, price and output cannot be changed.
The long run is a period where all factors of production are varied. It is known as the planning time for a company
Identify whether the income below would be considered earned income, passive income, or portfolio income. Mychal’s parents bought a house, fixed it up, and sold it at a higher price.
Answers
Answer: Portfolio income is money received from investments, dividends, interest, and capital gains. It is one of three categories of income.
Explanation:
What happens to total revenue (TR) if the price rises on a product with demand that is price inelastic
Answers
Answer:
rrokokokkoko
Explanation:nfjnjnrjnfjnrjnfjrnfjnrjfnrjnfjrnfjnrjnfjnrjfnjrnfjrnfjenfekrenkenfeknfekrjf nkj
All of the following statements about forecast quality are true, exceptA. it is not affected by forecast skill.B. it takes into account the agreement between prediction and reality.C. it takes into account forecast bias.D. it is related to forecast accuracy.
Answers
The statement "it is not affected by forecast skill" is not true.
Here correct option is A.
Forecast quality is indeed affected by forecast skill. Forecast skill refers to the accuracy and reliability of the forecasting methods and techniques used to make predictions. Higher forecast skill typically leads to better forecast quality, as skilled forecasters are more likely to produce accurate and reliable predictions.
The other statements are true:
B. Forecast quality takes into account the agreement between prediction and reality. It measures how closely the forecast aligns with the actual outcomes or events that occur.
C. Forecast quality takes into account forecast bias. Bias refers to systematic errors or tendencies in forecasts that consistently overestimate or underestimate actual values. Forecast quality considers the presence and magnitude of bias in evaluating the accuracy and reliability of forecasts.
D. Forecast quality is related to forecast accuracy. Forecast accuracy refers to the degree of closeness between the predicted values and the actual observed values. Higher forecast accuracy indicates better forecast quality, as accurate predictions are more valuable and useful for decision-making.
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What is the formula in excel to determine sales made in somecontry
with Yes/No
Answers
The formula in Excel to determine sales made in a country with a Yes/No is the COUNTIF function. The COUNTIF function allows you to count the number of cells in a range that meet specific criteria.
To determine sales made in a country with a Yes/No, you can use the following formula:
=COUNTIF(range, "Yes")
In this formula, "range" represents the range of cells where you have recorded the country information. You need to replace "range" with the actual range of cells in your Excel worksheet.
The formula will count the number of cells in the specified range that contain the value "Yes". This will give you the total count of sales made in that particular country. You can also modify the formula to count the sales made with a "No" by replacing "Yes" with "No" in the formula.
Using the COUNTIF function in this way helps you easily determine the number of sales made in a specific country based on the Yes/No criteria.
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Is there any way for a monopoly to operate more efficiently than a competitive market? why or how?.
Answers
The equilibrium point in a competitive market exists at the point of optimal market efficiency.
What is competitive market?A competitive market exists a term in economics that guides to a marketplace where there exist a large number of buyers and sellers and no single buyer or seller can influence the market. Competitive markets have no obstacles to entry, lots of buyers and sellers, and homogeneous products.
In economics, especially general equilibrium theory, A perfect market also understood as an atomistic market, is determined by several idealizing requirements, collectively anointed perfect competition or atomistic competition.
No, the monopoly can never be additional efficient than the perfectly competitive market because the competitive market exists at the point of optimal market efficiency and the monopoly will deliver at the point where the MR and the MC stand equal. here the market has the excess capability and a dead weight loss.
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HELP DUE IN 10 MINS! Sports Marketing: Product __________________ is very important today when consumers find so many similar products available for sale.
Answers
Answe
DIFFERENTIATION
Explanation:
I'm positive
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $170,000, they can be sold for a total of $230,000. As an alternative, the calculators can be sold in their present condition for $40,000. What is the financial advantage (disadvantage) to the company from upgrading the calculators?
Answers
Answer:
$20,000
Explanation:
Given :
Total cost of inventory= $576,000
Upgraded cost of calculator =$170,000
Sold cost of calculator =$230,000
Present sales cost = $40,000.
The incremental revenue of the calculator of sales can be determined by
\(= Sold\ cost\ of\ calculator\ -\ Upgraded\ cost\ of\ calculator\\)
=$230,000 - $170,000
=$60,000
Therefore financial advantage to the company from upgrading to the calculators can be determined
\($\ 60,000- $40,000\\\)
=$20,000
Mel prints 1200 leaflets to advertise her new business.
The cost is £250 + 20% VAT. What is the cost of 1 leaflet
Answers
Answer:
$0.25
Explanation:
The cost of 1200 leaflets is $250 plus 20% VAT
the VAT charges is
=20% of $250
=20/100 x 250
=0.2 x 250
=$50
The total cost of 1200 leaflets
= $250 + $50
=$300
1200 leaflets cost , $300
one leaflet will cost
=$300/$1200
=$0.25
How the government has implemented measures to prevent anti_competitive behavior by firms
Answers
QUESTION 3 / 10 What is the first step you should take when you want to open a savings account? A. Review the different savings account options that your bank offers. B. Make your initial deposit. C. Go to the bank and fill out an application. D. Present your photo ID to the bank representative.
Answers
Answer:
A. Review the different savings account options that your bank offers.
You started a new job working 4 days a week. During a work day you can complete 3 tasks per hour. You also take a half hour for lunch and two 15 minute breaks. How many tasks are you able to complete during a week if you’re at work 8 hours a day?
Answers
In a week (working 4 days per week), you can complete 84 tasks (21 tasks per day x 4 days per week).
If the person can complete 3 tasks per hour and works 8 hours a day, they can complete 24 tasks in a day. However, they also take a half hour for lunch and two 15-minute breaks, which means they have 7 hours available for work. Therefore, they can complete 21 tasks in a day.
If they work 4 days a week, they can complete 84 tasks in a week (21 tasks per day x 4 days per week). It's important to note that this calculation assumes the person is able to complete tasks at a consistent rate throughout the day and does not account for any interruptions or distractions that may occur during their workday.
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When a company declares and distrbutus stock dividends. It should be reported on financing activities section of the statement of cash flowes True or False?
Answers
Stock dividends are not reported on the financing activities section of the statement of cash flows but are reported in the operating activities section as an adjustment to retained earnings.
When a company declares and distributes stock dividends, it should be reported in the operating activities section of the statement of cash flows, not the financing activities section. Stock dividends do not involve the inflow or outflow of cash and therefore do not impact the financing activities of the company. Instead, stock dividends are considered non-cash transactions and are reported as an adjustment to retained earnings in the operating activities section. The purpose of the statement of cash flows is to provide information about the cash flows of a company, including cash flows from operating, investing, and financing activities. Stock dividends, being non-cash transactions, do not fall under the financing activities category.
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hrough a process called , marketers collect and evaluate information about the marketing environment. a. marketing research b. environmental scanning c. perceptual mapping d. market analysis
Answers
Option - B : Environmental scanning .Through a process called Environmental scanning , marketers collect and evaluate information about the marketing environment.
The constant process of acquiring, examining, and interpreting data regarding the external elements that may have an influence on a company's marketing activities is known as environmental scanning. Numerous sources, including news stories, government documents, market studies, and industry trends, among others, can provide this data. Environmental scanning's goal is to assist marketers in seeing market possibilities and risks so they can decide on their marketing plans and methods with confidence. Market analysis and perceptual mapping, two further techniques used by marketers to comprehend and study the market, may both benefit from the information acquired via environmental scanning. Environmental scanning is the continuous observation of patterns and events in the internal and external environments of an organisation that have an impact on its success now and in the future.
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one main disadvantage of the corporate form of business is
Answers
Disadvantage: Lack of personal liability protection one main disadvantage of the corporate form of business is that shareholders are not personally protected from the company's liabilities.
If the corporation incurs debts or legal obligations, shareholders can be held personally responsible, potentially leading to the loss of personal assets. This lack of liability protection is in contrast to other business structures like limited liability companies (LLCs) or partnerships, where owners enjoy limited personal liability.
One main disadvantage of the corporate form of business is the lack of personal liability protection for shareholders. Unlike other business structures such as limited liability companies (LLCs) or partnerships, where owners have limited personal liability, in a corporation, shareholders can be held personally responsible for the company's debts and legal obligations. This means that if the corporation incurs financial losses or faces legal actions, shareholders may have to use their personal assets to satisfy these obligations. This exposes shareholders to significant financial risks and potential loss of personal wealth.
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Video concepts, inc. (vci) manufactures a line of dvd recorders (dvds) that are distributed to large retailers. The line consists of three models of dvds. The following data are available regarding the models: model dvd selling price variable cost demand/year per unit per unit (units) model lx1 $175 $100 2000 model lx2 $250 $125 1000 model lx3 $300 $140 500 vci is considering the addition of a fourth model to its line of dvds. This model would be sold to retailers for $375. The variable cost of this unit is $225. The demand for the new model lx4 is estimated to be 300 units per year, sixty percent of these units sales of the new model is expected to come from other models already being manufactured by vci (10 percent from model lx1, 30 percent from model lx2 and 60 percent from model lx3. Vci will incur a fixed cost of 20,000 to add new model to the line. Based on the data do you think they should add a new model lx4 to the lines or vcr's and if so why?
Answers
Using the contribution margin to calculate the net profit, it would not be profitable for VCR to add the new model LX4 to its line of DVD recorders.
Is there a justification to add a new model lx4 to the lines or vcr's?To determine whether VCI should add the new model LX4 to its line of DVD recorders, we need to calculate the incremental profit from adding the new model and compare it to the fixed cost of $20,000.
First, let's calculate the contribution margin per unit for each of the existing models:
Model LX1: Selling price per unit ($175) - Variable cost per unit ($100) = $75 contribution margin per unitModel LX2: Selling price per unit ($250) - Variable cost per unit ($125) = $125 contribution margin per unitModel LX3: Selling price per unit ($300) - Variable cost per unit ($140) = $160 contribution margin per unitNext, let's calculate the incremental profit from adding the new model LX4:
Selling price per unit ($375) - Variable cost per unit ($225) = $150 contribution margin per unitSales per year (300 units) x Contribution margin per unit ($150) = $45,000 incremental profit from new modelNow let's consider the expected impact on the sales of existing models:
Model LX1: 10% of 300 units = 30 units x Selling price per unit ($175) x Contribution margin per unit ($75) = $52,500 reduction in profitModel LX2: 30% of 300 units = 90 units x Selling price per unit ($250) x Contribution margin per unit ($125) = $11,250 reduction in profitModel LX3: 60% of 300 units = 180 units x Selling price per unit ($300) x Contribution margin per unit ($160) = $28,800 reduction in profitThe total reduction in profit from the existing models is $92,550. However, the incremental profit from the new model is $45,000, so the net profit impact of adding the new model LX4 is:
Net profit impact = Incremental profit - Reduction in profit from existing models
Net profit impact = $45,000 - $92,550
Net profit impact = -$47,550
Since the net profit impact of adding the new model is negative, it would not be profitable for VCR to add the new model LX4 to its line of DVD recorders. The fixed cost of $20,000 to add the new model would only exacerbate the negative impact on VCI's profits. Therefore, VCR should not add the new model to its line.
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Which is a requirement for an acceptance?
mirror image of offer
intent to contract
communicated
all of the above
Answers
All of the above
The offer must be mirrored, the first party must have an intent to contract, and that intent must be communicated for the second party to know, for sure, that a specific contract is agreed upon for acceptance.
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question 13 scenario 2, continued next, you prepare for the question-and-answer session that will follow your presentation. to predict what questions they may ask, you do a colleague test of your presentation. you should choose a colleague who has deep expertise in the electric vehicle industry. 1 point true false
Answers
Next, you prepare for the question-and-answer session that will follow your presentation. to predict what questions they may ask, you do a colleague test of your presentation.
The above statement is True.
An audience receives information from a speaker through a presentation. The typical purpose of a presentation is to enlighten, convince, inspire, motivate, build goodwill, or offer a new idea or product. Presentations can also include speeches, introductions, lectures, or demonstrations.The basic goals of presentations are to enlighten, move listeners to action, and foster goodwill. An effective presentation should be well-organized, have a decent subject, and match the objective and target audience.To know more about Presentation here
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A business analyzes what competitors are charging for products.
Answers
When a business analyzes what the competitors are charging for their products, it is known as the process of marketing info management.
What is the significance of business competitors?A business competitor can be referred to or considered as an organization that deals in the same product that is offered for sale by other enterprises in the same market.
It is important for a business to keep an eye on the acts of its competitors, as it helps them in keeping themselves updated with marketing info management.
Therefore, the significance regarding the business competitors has been aforementioned.
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True or false: Manufacturer's reps help small firms, or firms expanding into new markets, achieve extensive sales coverage without having to pay for full-time personnel. True false question. True False
Answers
According to business strategy, it is true that manufacturer's reps help small firms or firms expanding into new markets achieve extensive sales coverage without having to pay for full-time personnel.
This is because a manufacturer's rep is responsible for making sales on products made by the manufacturer.
However, while manufacturer's reps help small firms to expand through sales, they only get paid based on commission.
By getting paid based on commission, Manufacturers' reps won't pay full-time.
Hence, in this case, it is concluded that the correct answer is "True."
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Two synchronous machines operate in parallel and supply a total load of 300 MW. The capacities of the machines are 150 MW and 300 MW and have generator droop characteristics of 4% and 3% from no load to full load respectively. (i) Calculate the load taken by each machine assuming free governor action. What is the new load taken by machine 300 MW if the droop characteristic of this machine is changed to 4%?
Answers
Machine 1 takes a 43 MW load and Machine 2 takes a 129 MW load assuming free governor action and the new load taken by machine 300 MW is 150 MW.
In a parallel operation of synchronous machines, the load is shared based on the capacity and droop characteristics of each machine. Machine 1 has a capacity of 150 MW and a droop characteristic of 4%, while Machine 2 has a capacity of 300 MW and a droop characteristic of 3%. The load taken by each machine can be calculated by considering their capacities and droop characteristics.
Machine 1:
Load taken by Machine 1 = (Droop of Machine 1 / Sum of Droops) * Total Load
Load taken by Machine 1 = (4% / (4% + 3%)) * 300 MW
Load taken by Machine 1 = (4% / 7%) * 300 MW
Load taken by Machine 1 ≈ 42.86 MW ≈ 43 MW
Machine 2:
Load taken by Machine 2 = (Droop of Machine 2 / Sum of Droops) * Total Load
Load taken by Machine 2 = (3% / (4% + 3%)) * 300 MW
Load taken by Machine 2 = (3% / 7%) * 300 MW
Load taken by Machine 2 ≈ 128.57 MW ≈ 129 MW
If the droop characteristic of Machine 2 is changed to 4% (similar to Machine 1), the new load taken by Machine 2 can be calculated as:
New Load taken by Machine 2 = (4% / (4% + 4%)) * 300 MW
New Load taken by Machine 2 = (4% / 8%) * 300 MW
New Load taken by Machine 2 ≈ 150 MW
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Prepare a "rough draft" of your Work Breakdown Structure (WBS) or Process Breakdown Structure (PBS) depending on developing a software application for the client which would help them to manage their business more efficiently.
Note: Please Give the relevant information to prepare a "rough draft" of Work Breakdown Structure (WBS) or Process Breakdown Structure (PBS) on developing a software application.
Answers
A Work Breakdown Structure (WBS) is a hierarchical decomposition of the project scope into deliverable-oriented chunks, making it easy to organize and manage a project. A Process Breakdown Structure (PBS), on the other hand, is a structured decomposition of a set of interconnected business processes into a set of process activities, sub-activities, and tasks.
For developing a software application for the client, a rough draft of a Work Breakdown Structure (WBS) or Process Breakdown Structure (PBS) could be prepared. The following are the steps to prepare the rough draft of a WBS for developing a software application
:Step 1: Project Start-up and Requirements GatheringIn this phase, the project is initiated, and the requirements for the software application are gathered. This may involve meetings with the client, research on similar applications, and documentation of requirements. Deliverables: Project initiation document, requirements documentation.
Step 2: Design and Development The software application's design is developed and reviewed. After that, the software's coding is completed and tested. Deliverables: Design documents, coding, and testing results.
Step 3: Implementation In this phase, the software application is rolled out to the client. The end-users are trained to use the software application. Deliverables: Implementation documents, training documents.
Step 4: Maintenance and SupportAfter the software application has been rolled out to the client, it is monitored, maintained, and supported by the development team. Deliverables: Maintenance and support documentation.The above-mentioned four steps can be used to prepare a rough draft of a Work Breakdown Structure (WBS) or Process Breakdown Structure (PBS) for developing a software application for a client.
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which of these is the healthiest inflation rate?
A. 2.5%
B. 3%
C. 3.5%
Answers
Based on the Consumer Price Index, the Federal Reserve seeks to maintain inflation at 2%. (CPI)
Price increases, or inflation, can be thought of as the gradual loss of purchasing power. The average price increase of a selection of products and services over time can serve as a proxy for the rate at which buying power declines.
A unit of currency effectively buys less as a result of the increase in pricing, which is sometimes stated as a percentage. Deflation, which happens when prices fall and buying power rises, can be compared to inflation.
The rate at which the cost of goods and services increases is known as inflation.
Demand-pull inflation, cost-push inflation, and built-in inflation are the three categories into which inflation is sometimes divided.
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HELP ASAP ECON !!!???
Answers
Answer:
oop
Explanation:
Social workers help to improve the quality of life for their clients.
A-True
B-False
Hurry
Answers
Answer:
A
Explanation:
Answer:
I think True
Explanation:
in determining whether there is a title ix violation, which of the following is correct?
Answers
In determining whether there is a Title IX violation, it is important to consider several factors.
Title IX prohibits sex discrimination in any education program or activity that receives federal funding. Therefore, it is necessary to determine whether the alleged conduct occurred in an educational program or activity, and whether the program or activity receives federal funding. Additionally, it is important to assess whether the conduct in question constitutes sex discrimination, as Title IX only covers discrimination on the basis of sex. Furthermore, the severity and pervasiveness of the alleged conduct should be considered, as well as the school's response to the reported incident. The school's obligation to respond to reports of sexual harassment or assault should also be taken into account. If the conduct in question is determined to be a Title IX violation, the school may be required to take corrective action to address the issue and prevent future incidents.
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how can person identify whether a company is private company or public company
Answers
Answer:
The overview of that same problem is defined throughout the explanation segment below.
Explanation:
My understanding would be that privately owned businesses will happily inform anyone who queries. Publicly traded companies are identified by the mark as well as the worker's everyone seems to be testing their price of the stock-to decide according to one's interest in share capital.But things are going to change, the FED had already lost together with all remaining remains of knowledge that convince one where the worth of someone's inventory since they have lost Market Exploration.
Keaston is considering a job in the event sector. He enjoys working with a team and setting up/tearing down of equipment and furniture. He is a multi-tasker and also enjoys helping solve difficult problems and handling large-scale emergencies. He doesn't really like finding event locations or vendors. Which role should he consider and why?
Question 2 options:
An event planner, because he would be good at connecting clients and venues
An event planner, because he could create a detailed list of event invitations
An event manager, because he could work independently without a team
an event manager, because he could help oversee the setting up and breaking down of an event.
Answers
Answer: An event manager, because he could help oversee the setting up and breaking down of an event
Explanation: Keaston should choose this position because it allows him to work in teams. He would be utilizing his multi-tasking by overseeing the setting up/tearing down. When a problem arises, he will work efficiently to solve the problem. It states that he does not like finding the locations or vendors, therefore event planner is not for him because talking to clients, venues, and creating lists are not for him. He should not be a event manager because he does enjoy working in teams.
Question 14 of 20
Why might health care costs be less of a concern for a British company than
an American company?
A. America has stronger laws that regulate health care.
B. American companies do not provide health care to employees.
C. Britain allows its citizens to seek foreign treatment.
D. Britain has a system providing free universal health care.
Answers
Answer:
A
Explanation:
America has strong laws regulate health care
Answer:
its D - Britain has a system providing free universal health care.
Explanation: