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zavuch27 [327]
2 years ago
15

ABC Online Merchant has a current stock price of $42.50. The company paid $1.34 in dividends this year, and the dividends are ex

pected to grow at 3% per year. If an investor has a required rate of return of 5%, what is ABC worth to that investor
Business
1 answer:
yKpoI14uk [10]2 years ago
7 0

The formula is to calculate stock price through dividend discount model is

Share price  = Dividend/(rate of return - dividend growth rate)

                   =$1.34/(5%-3%)

                   =$67

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Orlando Boom has been offered an internship at a local animal shelter for six weeks during the summer, four hours each week day.
Cerrena [4.2K]

Answer:

<u>False</u>

Explanation:

<em>There is no such thing</em> as community engagement graduation requirements. However there is internship as a requirement for college graduation.

Therefore , Orlando can use this internship to only fulfill his internship graduation requirements having learnt practical knowledge from the animal shelter for six weeks.

5 0
2 years ago
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A stadium was fined $186,000 by the city due to the traffic issues that were caused by a stadium's inability to handle traffic f
In-s [12.5K]

Answer:

$83000

Explanation:

Given: Stadium is fined for $186000

           Other parking expense is $163000

           Revenue generated by stadium in parking= $432000.

Now, calculating profit:

Profit= Revenue - expense

Profit= 432000-186000-163000= 432000-349000

∴ Profit= $83000

∴ Total profit made for parking that day is $83000.

3 0
2 years ago
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uppose the current term structure of interest rates, assuming annual compounding, is as follows: s_1s 1 ​ s_2s 2 ​ s_3s 3 ​ s_4s
Ahat [919]

Answer:

7.53%

Explanation:

Calculation for the discount rate of d(0,4)d(0,4)

The discount factor is : d=1/1+i

And given that the interest rates are compounded annually the discount factor will gives the present value of the bond when provided with the interest rate and maturity value.

Therefore the present value of a bond with a maturity value of 1 will be;

Present value=1 /(1+i1) (1+i) (1+i3) (1+i4)

Present value=1 / (1.07) (1.073) (1.077) (1.081)

Present value=0.748

The present value of a bond with a maturity value of 1 will therefore be 0.748.

Now, let calculate the discounting factor for the whole 4 years:

1 (1+d (0,4))‐⁴ =0.748

(1+d(0,4))=0.748‐¹/⁴

1+d (0,4) =1.0753

d (0,4)=0.0753

Therefore the discount rate will be 7.53%

5 0
2 years ago
Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per
Oksanka [162]

Answer:

$10

Explanation:

Interior airline is expected to make a dividend payment of $3

The growth rate of the dividend is 10%

The risk free rate of the return is 4%

The expected return on the market portfolio is 13%

The stock beta of interior airline is 4

The first step is to calculate the cost of equity

r= 4% + 4(13%-4%)

r= 4% + 4(9)

r= 4% + 36

r= 40%

Therefore, the value of the stock using the constant growth DMM can be calculated as follows

Value of the stock= 3/(40/100-10/100)

= 3/(0.4-0.1)

= 3/0.3

= $10

Hence the value of the stock is $10

4 0
2 years ago
24. An American soldier stationed in North Carolina receives a paycheck from the federal government for $300, which she uses to
FrozenT [24]

Answer:

$200

Explanation:

GDP refers to the total value of all goods and services produced in a country in a period. Economists consider all products regardless of who manufactured them. Only finished consumer goods and services are counted to avoid double counting.

In the scenario, only the fruits and vegetables will add to the US GDP. They are finished consumer goods produced within the borders of the US. If they were capital goods, they would not be included in GDP calculations. The $100 spent on MP3 will not count because the item was not produced in the US. It is an import. Its value will be adjusted against exports when calculating GDP.

4 0
2 years ago
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