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zhuklara
1 month ago
14

Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the exp

ected dividend per share in one year is $0.50. CCN has just paid a dividend, so the next dividend is the $0.50 to be paid one year from now. Calculate the expected price per share 14 years from now. Assume that a dividend has just been paid.
Business
1 answer:
marusya05 [3K]1 month ago
6 0

Answer:

P14 = $55.69545045394 rounded to $55.70

Explanation:

The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,

P0 = D1 / (r - g)

Where,

  • D1 represents the expected dividend for Year 1 or the following year
  • g denotes the constant growth rate for dividends
  • r signifies the discount rate or the required rate of return

To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,

D15 = D1 * (1+g)^14

D15 = 0.50 * (1+0.09)^14

D15 = $1.67086351362 rounded to $1.67

Now applying the DDM formula for the price,

P14 = 1.67086351362 / (0.12 - 0.09)

P14 = $55.69545045394 rounded to $55.70

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Jenna works at the grocery store and earns $9 an hour. She is busy with extracurricular activities and only works 20 hours durin
Nady [2956]

Answer:

ingresos/anualmente - costos/anualmente - impuestos = ganancias

Explanation:

20 horas/semana en un año tiene 4 semanas; 20*52=1040 horas/año

8 horas/1 domingo al año; trabaja solo 12 domingos; 8h*12=96h

$9/hora de ingresos

$1000 costos fijos

$1500 en viajes

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1040+96= 1136 horas/año

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10224-1000-1500=7724 ganancias antes de intereses e impuestos

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7 0
29 days ago
In may, the price of a pair of jeans was 250% of its wholesale cost. in june, the price was reduced by 25%. after an additional
arsen [2965]
To work this out, we have to reverse the steps:
After the July discount of 50%, the price of the jeans is $25.50
Thus, the original price before this discount was 2 * $22.50 = $45
In June, the cost was decreased by 25%.
45 ------------------75%
x --------------------100 %
45: x = 75: 100
45 * 100 = 75 x
4,500 = 75 x
x = 4,500: 75
x = $60
Finally, in May the jeans were priced at 250% of their wholesale cost.
60 ----------------- 250%
x -------------------100 %
60: x = 250: 100
6,000 = 250x
x = 6,000: 250
x = $24
Conclusion: The wholesale cost of the jeans was $24.

4 0
19 days ago
Read 2 more answers
You just took an Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier tha
soldi70 [3139]

Answer:

a. There was no breach of the law of demand since your product preference changed after trying the service.

Explanation:

Consumer tastes and preferences significantly influence demand. A person's inclination towards a product determines whether they desire more or less of it, affecting overall demand.

Your preference shifted in favor of the Uber ride over driving yourself, justifying your willingness to pay a higher price, thereby upholding the law of demand.

6 0
1 month ago
Sanborn company rents space to a tenant for $3,100 per month. the tenant currently owes rent for november and december. the tena
soldi70 [3139]

To adjust for Rent Receivable:

Sanborn Company has a tenant paying $3,100 monthly for renting space. The tenant has outstanding rent for November and December, which results in a total Rent Receivable on December 31 of (3100*2) = $6,200

Consequently, the adjusting entry on December 31 should be recorded as follows:


Rent Receivable Debit $6,200

Rent Revenue Credit $6,200

(Reflecting adjustment for rent receivable)


8 0
12 days ago
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marusya05 [3091]
a. Using FIFO, the Cost of Goods Sold (COGS) is $17,640, while the Ending Inventory equals $12,960. b. Under LIFO, COGS totals $19,160, while the Ending Inventory is $11,440. c. The Weighted Average COGS is $18,360, and the Weighted Ending Inventory is $12,240. For Cortez Company, the inventory particulars include initial stock of 100 units from $60/unit amounting to $6,000, first batch purchase of 150 units at $68 each totaling $10,200, and a second batch of 200 units at $72 each totaling $14,400, culminating in a total of 450 units valued at $30,600. Queries about how COGS and Ending Inventory figures manifest under various methods (FIFO, LIFO, and Weighted Average) can be addressed based on those computations.
7 0
16 days ago
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