answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arisa [49]
2 years ago
8

Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate

of 6.50% per year in the future. The company's beta is 0.75, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price? Do not round intermediate calculations.
Business
1 answer:
valkas [14]2 years ago
5 0

Answer:

$9.74

D0 $0.75

b 1.70

rRF 4.5%

rM 10.5%

g 6.5%

D1 = D0(1 + g) =$0.7988

rS = rRF + b(rM - RRF) =14.7%

P0 = D1/(rS - g)=$9.7

Explanation:

You might be interested in
You inherited an oil well that will pay you $25,000 per year for 25 years, with the first payment being made today. If you think
xxTIMURxx [149]

Answer:

(B) 299,574

Explanation:

We have to calculate the present value of an annuity-due of 25,000

That's because it is being paid in advance.

annuity \times \frac{1 -  {(1 + rate)}^{ - time} }{rate}   \times (1 + rate)= present \: value

25000 \times \frac{1 -  {1.075}^{ - 25} }{.075}  \times 1.075 =  present \: value

299574.17

<em>Remember</em>: when the payment or receipts are made in advance, AKA at the beginning of the period, multiply the annuity formula for (1+rate)

That's because <u>the annuities are held for 1 more period </u>than usually.

8 0
2 years ago
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result
bearhunter [10]

Answer:

b. inelastic

c. Yes - it decreased

Explanation:

Elasticitiy of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded/ percentage change in price

= -2/4 = -0.5

The absolute value is 0.5

If the absolute value of the coffiecnet of elasticity of demand is less than one, demand is inelastic.

Demand is inelastic if a change in price has no effect on quantity demanded .

We can tell that the quantity demanded fell because of the negative sign in front of the percentage change in quantity demanded.

I hope my answer helps you

7 0
2 years ago
Washington has an extensive collection of baseball cards. He wants to know how much his mint condition, rookie-year Hank Aaron c
Anit [1.1K]

<u>Explanation:</u>

It is recommended by some to determine a card's current market value of by determining whether the card has been professionally graded by the Professional Sports Authenticator, if yes, then one can check up the value on the Sports Market Report (SMR).

However, the Hank Aaron card is Estimated to have a PSA 9 Mint Value of $17,500.

7 0
2 years ago
Suppose that Markus Braun was trying to decide where he should open businesses next. He wants to make a rational decision. What
Komok [63]

Markus Braun's first step in making a rational decision is <em>a. Define the problem.</em>

The definition of the problem of where to open businesses will enable Markus to:

  • Establish critical decision criteria that will be used to adjudge the different choices.

  • Ascertain and evaluate the optimal locations that will meet his investment requirements.

Six decision-making processes identified for achieving satisfactory outcomes include:

  • Step 1 is the Identification of the Problem
  • Step 2 is the Establishment of the Decision Criteria
  • Step 3 is the Weighing of the Decision Criteria
  • Step 4 is the Generation or Identification of Alternatives
  • Step 5 is the Evaluation of Alternatives
  • Step 6 is the Selection of the Best Alternative

Thus, wherever these processes are followed, the probability of achieving favorable outcomes become higher.

Read more: brainly.com/question/16867992

4 0
2 years ago
Read the excerpt from “The Girl Who Silenced the World for Five Minutes.”
BaLLatris [955]

Answer:

it's A.

Explanation:

I took the quiz on edge 2020

7 0
2 years ago
Read 2 more answers
Other questions:
  • Which of the following illustrates a tradeoff​? A. Randy enjoys ski vacations. B. I will study for my exam instead of going to t
    15·1 answer
  • On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received
    13·1 answer
  • Four students are at an extracurricular activity fair at their high school and are trying to decide which clubs to join. Some in
    7·2 answers
  • Joe works for a company that has a traveling sales force. The company has asked Joe to research a way for the sales force to hav
    7·1 answer
  • Jackie Swain obtains a $65,000 loan on her home. The principal and interest payments are based on a factor of 8.05 per $1,000. T
    7·1 answer
  • An industry dominated by a few large firms, all of which struggle with product differentiation, is known as A. multi-domestic. B
    5·1 answer
  • Cycle Sporting Goods sells bicycles throughout the northeastern United States. The following data were taken from the most recen
    15·1 answer
  • The Golden Group is a group of luxury hotels that caters exclusively to high-end customers who form a small part of the market a
    5·2 answers
  • Which of these transactions would produce $10,000 of revenue in December? (check all that apply) BOC Realty leases space to a te
    14·1 answer
  • MotorCar, a major automobile company headquartered in Detroit, is concerned about being left behind in the race to produce auton
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!