The company will increase its dividend by 24 percent next year and then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 12 percent, what will a share of stock sell for today
Answers
To calculate the stock price today, we need to use the dividend discount model (DDM) formula, which is: the stock price today is $56.03 per share.
Stock Price = Dividend / (Required Rate of Return - Dividend Growth Rate)
We can break down the dividend growth rate into three periods:
High-growth period (for the next year): Dividend growth rate = 24%
Transitional period (until it reaches industry average): Dividend growth rate declines by 6 percentage points per year
Steady-state period (after it reaches industry average): Dividend growth rate = 6%
So, we can calculate the dividends for each period as follows:
Year 1: D1 = D0 × (1 + growth rate) = D0 × (1 + 24%) = 1.24D0
Year 2: D2 = D1 × (1 + growth rate) = 1.24D0 × (1 + 18%) = 1.4656D0
Year 3: D3 = D2 × (1 + growth rate) = 1.4656D0 × (1 + 12%) = 1.643872D0
Year 4: D4 = D3 × (1 + growth rate) = 1.643872D0 × (1 + 6%) = 1.74007712D0
Year 5 and beyond: D5 = D4 × (1 + growth rate) = 1.74007712D0 × 1.06 = 1.8424803D0
Now, we can use the DDM formula to calculate the stock price today:
Stock Price = D1 / (r - g)
where D1 is the dividend expected in Year 1, r is the required rate of return, and g is the dividend growth rate.
Plugging in the values, we get:
Stock Price = [1.24D0] / (0.12 - 0.24) + [1.4656D0] / (0.12 - 0.18) + [1.643872D0] / (0.12 - 0.12) + [1.74007712D0] / (0.12 - 0.06) + [1.8424803D0] / (0.12 - 0.06)
Simplifying, we get:
Stock Price = $56.03
Therefore, the stock price today is $56.03 per share.
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Related Questions
crystal coast is an all-inclusive beachside resort. it offers lodging, six restaurants, dancing, snorkeling, parasailing, and spa treatments. on the resort grounds, crystal coast also has a dive center, jet skis, and a water park. all of these amenities are only available to customers staying at crystal coast. crystal coast’s strategic position emerges from
Answers
Answer:broads
Explanation:
Question 10 of 10
Jake is considered to be a warm, friendly person with a lot of energy. He does
not have many strong technical skills. Which marketing career might be best
for him?
A. Marketing manager
B. Graphic designer
O c. Art director
D. Sales representative
Answers
Answer: Sales Representative
Explanation:
People who are Sales Representatives are normally people that are likable, just as James
Jake is considered to be a warm, friendly person with a lot of energy. He does not have many strong technical skills. The marketing career might be best for him as a Sales representative. The correct option is d.
What is a sales representative?A sales representative interacts directly with customers throughout all phases of the sales process. They’re responsible for identifying a customer’s needs, pitching relevant products or services, and ensuring they have a positive experience from start to finish.
In some cases, a sales agent will cold call prospects they find through business directories or client referrals. Other times, “warm” leads that have already expressed interest will be sent to them by their company’s marketing team. Being successful requires a mix of both building and maintaining customer relationships and consistently seeking new business opportunities.
A sales representative is typically expected to reach a particular sales quota each month.
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Which is a steppingstone towards future education
A. A high school diploma
B. On the job training
C. Vocational courses
D. Technical courses
Answers
Answer:
a high school diploma or on the job training
wc's taxable income (loss) without the dividend income or the drd is $10,000. what is wc's book-tax difference associate with its drd? is the difference favorable or unfavorable? is it permanent or temporary?
Answers
The book-tax difference associated with the DRD is $2,500. This difference is favorable, as it reduces WC's taxable income and, therefore, its tax liability. However, the difference is temporary because it results from a timing difference between book and tax accounting. The DRD is deductible for tax purposes, but it is not deducted from book income, which results in a temporary difference between the two.
To calculate WC's book-tax difference associated with its DRD, we need to first determine the amount of DRD that WC is entitled to receive. The DRD, or ""dividends received deduction,"" is a tax break that allows corporations to deduct a portion of the dividends they receive from other corporations from their taxable income.
Assuming that WC is eligible for the DRD and has received dividend income, we need to subtract the DRD from WC's taxable income (loss) to determine its taxable income (loss) without the DRD. This will give us the book-tax difference associated with the DRD.
Let's assume that WC received $5,000 in dividend income and is eligible for a DRD of 50% of the dividend income. Therefore, WC's DRD would be $2,500 ($5,000 x 50%).
To calculate WC's taxable income (loss) without the DRD, we would subtract the DRD from its taxable income (loss) without the dividend income:
$10,000 (taxable income (loss) without dividend income) - $2,500 (DRD) = $7,500 (taxable income (loss) without DRD)
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In some cases a marketing dashboard can overly rely on _________. A. Inside-out measurement B. Outside-in measurement C. Total measurement D. Partial measurement, leading to partial solutions E. All of these
Answers
In some cases, a marketing dashboard can overly rely on partial measurement, leading to partial solutions. Marketing dashboards are a useful tool for businesses to track their marketing efforts and measure their success.
However, if the dashboard is only measuring a small portion of the data or metrics, it can lead to partial solutions. For example, if the dashboard is only tracking website traffic and not measuring conversions or customer engagement, the business may miss out on important insights that could improve their marketing strategies. Similarly, if the dashboard is only measuring the performance of a particular marketing campaign and not taking into account the overall market trends, the business may make decisions based on incomplete data. Over-reliance on partial measurement can occur when businesses focus on inside-out measurement, which looks at internal data such as sales figures, or outside-in measurement, which focuses on external data such as customer feedback. While these methods can be useful, relying solely on them can result in a narrow view of the market and lead to incomplete solutions.
In conclusion, while marketing dashboards are a valuable tool, it is important to ensure that they are measuring a variety of metrics to provide a comprehensive view of the market. Over-reliance on partial measurement can lead to incomplete solutions and hinder business growth.
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Which economic system has the most government control? (Select the best answer.)
A planned economy . A traditional economy . A mixed economy . A market economy
Answers
Answer:
A planned economy because they know what is going to be put in place at any certain time, so they have the most power. Hope it helps! Please vote Brainliest!
Explanation:
Answer:
A planned economy that is the answer
How did the relationship between Parliament and the Restoration monarchs, Charles II and James II, change following the English Civil War? The monarchs respected Parliament’s limits on their power. The monarchs succeeded in increasing their power at the expense of Parliament. The monarchs continued to challenge Parliament's authority. The monarchs generally deferred to Parliament when there was a disagreement.
Answers
Answer:
The monarchs continued to challenge Parliament's authority.
Explanation:
Following the English Civil War, tensions between the monarchs and Parliament began to grow. Queen Elizabeth did not leave any heir, therefore, James I began the Stuart Dynasty. James I believed in Divine Rule, which was in oppose of Queen Elizabeth's rule who worked with Parliament.
After the English Civil War, the monarchs continues to challenge Parliament's authority. During Restoration monarchs, Charles II and James II, Parliament and monarchs were in conflict with each other.
Therefore, option C is correct.
Answer:
The monarchs continued to challenge Parliament's authority.
Explanation:
a random sample of 40 ucf students has a mean electricity bill of $112. assume the population standard deviation is $19.20. construct a 90% confidence interval for the mean electricity bill of all ucf students. round final answer to two decimal places.
Answers
The answer of the given question is 90% CI for mean electricity bill is $107.02 < mean <$116.98
A z-score table displays the percentage of values (often expressed as a decimal number) on a normal distribution to the left of a specific z-score. Start by reading off the area in the common normal distribution table to locate the region to the right of a positive z-score.
We deduct the area from the table from 1 since the overall area under the bell curve is 1 (a decimal value that is 100% identical).
Use the same table but ignore the negative sign if your z-score is negative, and then deduct the area from the table from one.
Simply use the same table to locate the region above your z-score if you have a negative z-score and ignore the negative sign. like 90% CI for mean electricity bill is $107.02 < mean <$116.98
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Businesses that offer flexible hours allow their workers to arrive at work whenever they feel like it. please select the best answer from the choices provided t f
Answers
A flexible schedule permits an employee to work hours that deviate from the typical start and stop times of the organization.
Is it good to have a flexible schedule?Flexible employment is no longer limited to gig workers or freelancers; many "conventional" firms are also providing flexible schedules to their employees.
Flexible schedules help employees, and wise companies understand that giving flexible schedules benefits them as well. From being a green company to having a competitive advantage in recruitment and boosting diversity, the advantages of flexible work for businesses can help your organization stay ahead of the competition.
Thus, The statement is False.
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How do you increase the quality of your products, i. E. , reduce flaws in production? chegg.
Answers
Increasing the quality of your products can be achieved by doing the
following:
Using standard raw materials.Adopting best work practices.What is Quality?This is the measurement of standard or excellence of an individual, goods
and services.
It is best for an organization to churn out quality products as it helps to
increase sales and profit. This can however be achieved by using standard
raw materials and practices during production.
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Click this link to view O*NET’s Skills section for Postal Service Mail Carriers. Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, which common skills are needed by Postal Service Mail Carriers? Select two options.
active listening
critical thinking
repairing
instructing
equipment maintenance
Answers
Answer:
AB
Explanation:
got it right
Mike, an 18 year old male chose not to go to post-secondary school, but found a job working for a local lawn care business. Mike's employer is a seasonal employer earns $8 an hour and works 40 hours per week. His employer does not provide any type of health insurance coverage. Mike has purchased a nice used truck upon graduation and currently makes payments on the vehicle. Mike has an apartment and lives with three other buddies. Mike was playing a game of pick-up basketball and injured his ankle. He has no insurance and will be unable to work for the next 6 weeks. What do we need to consider in this scenario and what are Mike's options?
Answers
a restaurant offers a 20% discount on all meals for people aged 60 and older. this restaurant is practicing
Answers
The restaurant is practicing a senior discount, which offers a 20% discount on all meals for individuals aged 60 and older.
Buyer. It is often used as a marketing strategy to increase sales volume or to reward customer loyalty. Discounts can be expressed in percentage or dollar amounts and can be offered for various reasons such as promotional purposes, seasonal sales, bulk purchases, or to clear inventory. Discounts are commonly used in the retail industry to encourage customers to make purchases. For example, a store may offer a 10% discount on all items during a holiday sale to attract more customers. In addition, businesses may offer discounts to repeat customers to promote customer loyalty.
This is a common practice among businesses to show appreciation and provide incentives for older customers.
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Which part of the ethical code for social work is described?
Suppose you are working with a community group and a concern is raised about the single mothers in the community. After listening to the group, you realize the concern is that people do not want to rent to single mothers; therefore, these individuals are usually living on the top floor of old buildings that are not always the best environment for children.
social justice
competence
service
relationships
Answers
Social justice is the correct answer.
Answer:
tis actually competence
Explanation:
question content area a company seeks to maximize profit subject to limited availability of man-hours. man-hours is a controllable input. true or false
Answers
True. Man-hours can be considered a controllable input in the context of a company seeking to maximize profit within limited availability.
In business operations, man-hours refer to the total amount of work performed by individuals or the total number of hours worked by employees. The availability of man-hours is typically within the control of the company as it depends on factors such as the number of employees, their working hours, and their productivity levels.
By optimizing the allocation and utilization of man-hours, a company can effectively manage its workforce and maximize productivity. This includes assigning tasks efficiently, scheduling work shifts, implementing productivity measures, and ensuring proper utilization of labor resources. By doing so, the company can make the most of the available man-hours to achieve its production goals and ultimately maximize its profitability.
However, it is important to note that while man-hours are a controllable input, there may be external constraints such as legal limitations on working hours or labor union agreements that can affect the availability of man-hours to some extent.
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What might all people be able to do to BEST manage their money? Group of answer choices get a high-paying job create a personal budget avoid paying their bills put money in a savings account.
Answers
To BEST manage their money, all people might be able to create a personal budget and put money in a savings account.
Creating a personal budget is essential for effective money management. It involves carefully tracking income and expenses, setting financial goals, and allocating funds accordingly. By creating a budget, individuals can gain a clear understanding of their financial situation and make informed decisions about spending, saving, and investing.
Putting money in a savings account is another crucial step in managing money effectively. Saving a portion of income on a regular basis helps build an emergency fund and creates a safety net for unexpected expenses or future financial goals. A savings account provides a secure place to accumulate funds while earning interest, enabling individuals to grow their wealth over time and achieve greater financial stability.
While getting a high-paying job can certainly contribute to financial well-being, it is not solely sufficient for effective money management. Similarly, avoiding paying bills can lead to financial consequences and should be avoided. Therefore, creating a personal budget and prioritizing savings through a dedicated savings account are the two most impactful actions individuals can take to manage their money effectively.
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This condition causes people to struggle to sequence the sounds in syllables and words, which means that
they know what they want to say but can't say it.
O tongue-tied
Oapraxia
O stroke
O stuttering
Answers
Answer:
tongue tied
Explanation:
they know what they want to say but can't say it
Write a short paragraph describing the benefits of working as a team to complete a project.
Answers
Answer:
A group of people who have to achieve common goal is known as team. If we work in team it increases our creativity and learning, it also builds trust. It boost the particular person when we work in team. We can also learn faster. There are more chances of getting success in particular area if we work in team. As there is saying, " together we can achieve more what each of us can achieve." It also enhances productivity and capability.
True or False: Without engaging in international trade, Candonia and Lamponia would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) True False
Answers
False. Engaging in international trade allows countries like Candonia and Lamponia to consume at after-trade consumption bundles that would not be possible without trade.
International trade provides opportunities for countries to access a wider range of goods and services from other countries, increasing their consumption possibilities and expanding the variety of products available to their consumers. By participating in international trade, Candonia and Lamponia can benefit from comparative advantage. Each country can specialize in producing goods or services that they can produce more efficiently or at a lower opportunity cost compared to other countries. This specialization enables them to trade their surplus products with other nations and import goods and services that they are not as efficient in producing. As a result, both countries can consume a greater variety and quantity of goods and services than they would be able to produce domestically alone. In conclusion, international trade enhances the consumption possibilities for countries like Candonia and Lamponia by allowing them to access a broader range of goods and services. Without engaging in international trade, their consumption options would be limited to what they can produce domestically, leading to a narrower range of choices and potentially lower overall welfare.
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What are the similarities and differences in the purchasing
functions at a for profit versus a not for profit organization?
Answers
Explanation:
I hope this answer is helpful ):
What role does the Federal Election Commission have in enforcing campaign finance laws?
Answers
The Federal Election Commission limits and regulates public funding for presidential elections, as well as upholds federal campaign finance regulations, which include monitoring donation bans.
It is the responsibility of the independent American regulatory organization known as the Federal Election Commission (FEC) to preserve the laws governing campaign financing during federal elections. According to the Federal Election Campaign Commission's mission statement, it is responsible for "disclosing campaign finance information, enforcing the law's provisions, such as contribution restrictions and limits, and controlling how presidential elections are funded by the public." In 1974, changes to the Federal Election Campaign Act led to the creation of the Federal Election Campaign Commission. With the exception of May 2020 to July 2020, the commission was unable to work from late August 2019 to December 2020 due to a quorum issue. The panel was unable to vote on complaints or provide advisory opinions since there was no quorum present.
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Type the correct answer in the box. Spell all words correctly.
Ideally, what should more than one member of the family contribute to for a better financial position?
A family can have more than one person contributing to the household _______
for a better financial position.
Answers
A family can have more than one person contributing to the household income for a better financial position.
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A person who is involved in the process of creating and managing a business to achieve his or her desired objectives is engaged in
Answers
Answer:
entrepreneur
Explanation:
An entrepreneur is an individual who initiates the process of creating and managing a business entity with profit motives. They start with developing a business idea and transform it into a successful venture. Entrepreneurs assume the risks associated with starting a new business. They risk their capital, time, and energy with the expectation to make profits.
Entrepreneurs are creative and innovative people. They spot business opportunities where others don't. Entrepreneurs develop products and services that address the community's needs.
Differentiate between generic and enterprise competition
Answers
Answer:
Generic competition is competition among different products that solve the same purpose while enterprise competition is am orderly established business with limited liability of another person. The main difference between the two is that generic is rivalry among similar businesses while enterprise is the company itself.
Differences between generic and enterprise competition
Generic competition is regarded as the third level of competition while enterprise competition is not among the level of competition but it does existGeneric competition are often longer-term and focuses on substitutable product categories that is it exists between business product while Competitive Enterprise is simply a type of competition that exist been enterpriseFor better understanding, lets explain what Differences between generic and enterprise competition
Generic competition is a type of competition that is outward-oriented and focuse on products. the market that exists here consists of those products and services fulfilling the same customer needCompetitive Enterprise is simply when an existing or planned business enterprise are involved or engages in any activity and also owns or controls some a useful interest and are involved in any activity that tends to competes or will compete with other enterpriseFrom the above, we can therefore say that the answer
Differences between generic and enterprise competition
Generic competition is regarded as the third level of competition while enterprise competition is not among the level of competition but it does existGeneric competition are often longer-term and focuses on substitutable product categories that is it exists between business product while Competitive Enterprise is simply a type of competition that exist been enterpriseLearn more about enterprise competition from:
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30 POINTS :D
If someone you don't know asks where you go to school, what should you do?
A. Don't respond
B. See if they're a friend of a friend
C. Ask why they want to know
D. Lie to them
Answers
When using process costing, each processing department has a separate (1) (2) (3) account. (Enter only one word per blank.)
1. work
2. in
3. process
Answers
When using process costing, each processing department has a separate work-in-process account.
What is work-in-process?
Work-in-progress (WIP) is a production and supply-chain management word used to describe products that are partially done but need to be finished. Raw materials, labour, and overhead expenses expended on goods that are in various phases of manufacturing are referred to as WIP. WIP is a part of the balance sheet's inventory asset account. Following that, these expenses are charged to the finished goods account and ultimately to the cost of sales. One element of a company's balance sheet is WIPs. Only the value of those products in various intermediate production stages is reflected in the WIP figure. The cost of raw ingredients that haven't yet been used to create a product for sale is not included.
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You see information everywhere. Sometimes it is useful and sometimes it is not. Think of a scenario in which you think information can become a liability
Answers
Answer:
Getting Hacked
Explanation:
Information is one of the (if not the most) powerful weapon that exists and a great asset to those that possess it. That being said if you get hacked and that information gets stolen it can easily turn from being an asset to a liability. The individual that stole this information can use it against you in many ways such as stealing money, blackmail, using your identity, etc. The possibilities are endless.
How long after taxes are accepted will they be deposited?.
Answers
Select all the correct answer.
What type of factor of production is a bulldozer?
Oland
O labor
O capital
O entrepreneur
Answers
Answer:
capital
Explanation:
bulldozer is bought with capital.
I need help!
Does anyone have any good ideas to do a Senior exit project on? I have to find a field of work the do a project on and i need to shadow someone. What would be a good field of work to do?
Answers
Answer:
what bout some graphic designer? they do some cool stuff
Explanation: