a stock you are evaluating is expected to experience supernormal growth in dividends of 12 percent over the next three years. following this period, dividends are expected to grow at a constant rate of 4 percent. the stock paid a dividend of $1.50 last year and the required rate of return on the stock is 11 percent. calculate the stock's fair present value.

Answers

Answer 1

The actual price of the stock may differ from the fair present value, but this calculation provides a starting point for determining whether the stock is fairly priced.

To calculate the stock's fair present value, you can use the dividend discount model. This model calculates the present value of a stock by discounting the expected future dividends by the required rate of return.

Here's the calculation:

Year 1: $1.50 * (1 + 12%) = $1.68

Year 2: $1.68 * (1 + 12%) = $1.89

Year 3: $1.89 * (1 + 12%) = $2.13

After the three years of supernormal growth, the dividends are expected to grow at a constant rate of 4 percent.

Year 4: $2.13 * (1 + 4%) = $2.19

Year 5 and beyond: $2.19 * (1 + 4%) = $2.26, $2.33, ...

Next, you will calculate the present value of each future dividend by discounting it back to the present using the required rate of return:

Year 1: $1.68 / (1 + 11%) = $1.52

Year 2: $1.89 / (1 + 11%)^2 = $1.64

Year 3: $2.13 / (1 + 11%)^3 = $1.76

Year 4: $2.19 / (1 + 11%)^4 = $1.78

The present value of all future dividends is the sum of the present value of each year:

PV = $1.52 + $1.64 + $1.76 + $1.78 + ...

This is the fair present value of the stock, which represents the estimated value of the stock based on the expected future dividends and the required rate of return.

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Related Questions

The advertising industry was worth how much money in 1920?

$3,000

$300,0000

$3,000,000,000

$300,000,000

Answers

Answer:

3,000,000,000

Explanation:

let me now if I'm wrong

how does increase demand for a product help lower its price to consumers?

Answers

Answer:

The four basic laws of supply and demand are: If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.

Question 5 of 20
When an HR manager proposes a specific course of action or principle for the
business to adopt in a particular situation, she is proposing a(n)
A. benefit
B. investment
c. advocacy
D. policy

Answers

When a HR manager proposes a course of action to be adopted she is proposing a policy.

In Human resources, a policy is described as actions or principles that are to be adopted by an organization. Policies are very important in organizational settings because they help to influence the course of actions to be undertaken.

Policies are sets of guidelines that are adopted in order to influence decisions and outcomes. Certain procedures and protocols are followed in order to achieve a policy.

An example of a policy could be an insurance policy, non smoking policy and also internet policy.

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Answer:

D

Explanation:

does anyone here have job experience? in writing a resume and successfully getting a job. I'm having trouble because I'm 15 with no experience. ​

Answers

Answer:

Internships. An internship is a short-term job that may be paid or unpaid, that gives you experience in a real workplace. ...

Job shadowing. ...

Volunteer work. ...

Work in your neighborhood. ...

School and community activities.

Answer:

im 12 with absolutely no experience on how to even write a resume

Need Help

Ted is a single guy who’s living the good life. The spreadsheet below shows Ted’s cash flow for a month.

Based on his monthly cash flow, explain what part of Ted’s financial plan might be missing and why.

Need Help Ted is a single guy whos living the good life. The spreadsheet below shows Teds cash flow for

Answers

Answer:

Ted's net cash flow is zero. Therefore, he might want to work on managing his income to get a positive net cash flow. There is no indication that Ted is putting any money in savings.

Hope it helps!

what was the initial, root cause of the international debt crisis?

Answers

The initial root cause of the international debt crisis can be traced back to the 1970s when oil-producing countries, after experiencing a surge in oil revenues, deposited large amounts of money into Western banks.

In turn, these banks sought to lend their excess capital to developing countries, particularly in Latin America and Africa. The loans were primarily used for infrastructure projects and industrialization efforts.

However, several factors contributed to the escalation of the crisis. The increase in global interest rates in the late 1970s and early 1980s made debt repayment more difficult for these countries. Additionally, economic conditions, such as stagnant commodity prices, hindered their ability to generate sufficient export earnings to service their debts.

As the situation worsened, countries began to default on their loans, resulting in a crisis that affected both the indebted nations and the international financial system. International institutions like the International Monetary Fund (IMF) and World Bank intervened by providing financial assistance and implementing structural adjustment programs, aiming to stabilize economies and ensure debt repayment. In summary, the international debt crisis stemmed from a combination of surplus petrodollar recycling, excessive lending to developing countries, and unfavorable global economic conditions.

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the central bank can reduce the level of credit by

Answers

Answer:it can increase the reserve requirements

Explanation:

Which answer provides the best definition of a subsistence crop? crops raised to earn a profit for the family food items harvested from the wilderness crops grown to trade for hardware and lumber plants and animals grown to keep a family alive?

Answers

Answer:

plants and animals grown to keep a family alive

Explanation:

Subsistence farming happens when farmers grow food crops and rear animals just for the needs of themselves and their families. In this type of agriculture, farm output is targeted to for the survival of the family and is mostly for local requirements and it has little or no surplus. Planting decisions are made principally towards the need of the family. They are strictly for family maintenance

Pretty sure its:

plants and animals grown to keep a family alive

if the company has 475,000 shares outstanding and the stock currently sells for $41, how much will it cost you to buy a seat if the company uses straight voting?

Answers

In the following question, if the company has 475,000 shares outstanding and the stock currently sells for $41, The cost of buying a seat if the company uses straight voting is $19,475,000

The number of outstanding shares= 475,000

The price of each share = $41

Number of votes required to win a board seat= 1

We have to find the cost to buy a seat if the company uses straight voting. For this, we need to calculate the percentage of the share owned and the price of the share owned by the person.

PART 1:To win a board seat, the number of votes required= 1So, a person needs to have a minimum of 475,001 shares to win a board seat.

PART 2:So, we need to calculate the cost to buy 475,001 shares at the current market price.

Cost of buying one share = $41

Cost of buying 475,001

shares= $41 x 475,001 = $19,475,041

Therefore, the cost of buying a seat if the company uses straight voting is $19,475,000.

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how does advice to clients from lawyers differ from advice given clients by public relations practitioners?

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The advice given to clients by lawyers and public relations practitioners differs in a few key ways. Lawyers provide legal advice and recommendations based on their understanding of the law, while public relations practitioners provide advice on how to protect and enhance a client's reputation.

Lawyers will explain the potential legal ramifications of a decision or action, while public relations practitioners will explain the potential public opinion repercussions.

A lawyer will use their legal knowledge and experience to help their clients avoid legal consequences, while a public relations practitioner will use their understanding of the public and media to help protect and enhance the client's reputation.

A lawyer will advise clients on how to navigate legal matters, such as how to comply with a court order, how to draft contracts, and how to handle conflicts between parties.

On the other hand, public relations practitioners will advise clients on how to interact with the public, handle press inquiries, and promote the client's message. Public relations practitioners may also advise clients on what they can do to maintain a good public image.

Overall, the advice given to clients by lawyers and public relations practitioners differs in the scope and type of advice provided. Lawyers advise on legal matters, while public relations practitioners advise on public opinion and how to maintain a good public image.

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what is the main purpose of alcohol when doing poly gel nails?

Answers

Answer:

Gel gloss are included stronger components that realize the nail tighter than traditional lacquers and also are solid sufficient to withstand day-to-day wear and tear without damaging, discusses Essie Global Lead Instructor Rita Comment. A few distinctions in between the formula and also your normal lacquer? Gel polishes are much more adaptable, so they withstand chips; Gels are treated under a UV or LED light and brightens treatment in oxygen. Gels have to be eliminated by soaking in acetone for at the very least 10 minutes, while polishes can be quickly wiped away with nail gloss cleaner.

Explanation:

the best way to maintain your credit standing is to: multiple choice declare a chapter 7 bankruptcy. use credit sparingly. repay your debts on time. use as many credit cards as you can. pay cash for your purchases.

Answers

The best way to maintain your credit rating is to repay your debt on time. Timely payment is one of the most effective ways in which to determine yourself as an honest credit risk to future lenders.

Of the quintet, capacity—basically, the borrower's ability to get income to service the interest and principal on a loan—generally ranks because the most vital.

Good credit rating is the make-or-break detail that determines whether or not you get a mortgage, auto loan or student loan. Bad credit, on the other hand, can create it tough to induce a MasterCard with a coffee charge per unit and dearer to borrow cash for any purpose.

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The negative feeling that one should have made another purchase, consumption, or disposition decision than one actually did is referred to as _____.

Answers

Post-decision regret corresponds to the negative feeling that an individual should have made a different purchase decision than he actually did.

What causes post-decision regret?

In a purchase process, the consumer looks for products and services that satisfy their needs. After the purchase is made, regret may arise if the product or service does not satisfy those needs.

Therefore, post-purchase decision regret can be related to a negative perception of the benefits of the product and its quality, for example.

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WalMart grants credit to consumers who purchase for personal or family use. This type of credit is called:

Answers

Answer:

consumer credit

Explanation:

The type of credit being mentioned is known as consumer credit. This is a personal debt taken on by the future consumer in order to be able to purchase goods and/or services. This includes any type of personal loan used for this reason such as a credit card, mortgage loan, or even a store grant like the one that WalMart is providing in this scenario. Such store loans are usually given to individuals which will buy the goods and services from the store that provided the loan.

How does consumer preference shape the demand for residential space? (lesson 8)

Answers

Consumer preference plays a significant role in shaping the demand for residential space. Consumers have specific preferences regarding location, size, amenities, and other factors when choosing a place to live. Developers and builders must consider these preferences to meet consumer needs and maximize demand.

Consumer preference is a key driver of demand in the residential real estate market. Consumers have diverse preferences when it comes to their ideal living environment. Factors such as location, proximity to amenities, size, layout, style, and available features influence their decision-making process. For example, some consumers may prioritize living in urban areas close to their workplace, while others may prefer suburban or rural settings.

Consumer preferences also vary based on lifestyle, family size, and personal interests. Some may prioritize access to recreational facilities like parks, gyms, or swimming pools, while others may look for safety and security features in their residential space. Energy efficiency, sustainability, and smart home technology are becoming increasingly important factors for many consumers as well.

To meet consumer demands, developers and builders must be attentive to these preferences and incorporate them into their projects. They need to consider the location of their developments, the design and layout of residential units, and the amenities and features offered. By aligning their offerings with consumer preferences, developers can create properties that cater to the desires and needs of potential buyers or renters, thereby driving demand and maximizing the success of their projects.

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Discuss two accounting principles that are, in
your opinion, the most important and form the
foundation of modern-day accounting. Explain
the reasons for your choices.

Answers

Answer:

Revenue Principle and Cost Principle

Explanation:

Revenue principle  defines a point in time when bookkeepers may record a transaction as revenue on the books. This principle states that revenue for the business is earned and recorded at the point of sale.

Cost Principle states that you should use the historical cost of an item in the books, not the resell cost.

Answer:

Matching principle because it is an accounting principle for recording revenues and expenses. It requires that a business records expenses alongside revenues earned.

Disclosure principle because increased transparency in the corporations' operations and management makes it easier for investors to make informed decisions. It also cuts down on the possibility of manipulation or misuse of investors' funds.

Which person has the highest taxable income?
Person A: Earns $50,000 per year with $5,000 in deductions
Person B: Earns $60,000 per year with $10,000 in deductions
Person C: Earns $90,000 per year with $30,000 in deductions
Person D: Earns $100,000 per year with $60,000 in deductions
A. Person B
B. Person D
C. Person A
D. Person C

Answers

Answer:

D. Person C

Explanation:

Taxable income is the difference between the gross pay and all authorized deduction.  

For person A : taxable income = $50,000 - $5000 = $45,000

For Person B: taxable income =$60,000 - $10,000 = $50,000

For Person C: taxable income= $90,000 - $30,000 = $60,000

For Person D: taxable income=$ 100,000 - $60,00= $40,000

Person C has the highest taxable income with $60,000

Answer: person c

Explanation:

a pe x

Consolidation entries S and A are part of a sequence of worksheet adjustments that bring the Investment in Subsidiary account to a (1) balance.

Answers

Consolidation entries S and A are used to adjust the balance of the Investment in Subsidiary account as part of a sequence of worksheet adjustments. These adjustments are necessary in order to properly consolidate the financial statements of a parent company and its subsidiary.

The ultimate goal is to bring the Investment in Subsidiary account to a zero balance, indicating that all intercompany transactions have been eliminated. Entry S typically involves adjusting the subsidiary's equity accounts to reflect the elimination of intercompany transactions, while entry A involves adjusting the parent's investment account to reflect any changes in the subsidiary's book value. By completing these consolidation entries, the financial statements of the parent and subsidiary can be combined and presented as if they were a single entity.

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Consolidation entries S and A are part of a sequence of worksheet adjustments that bring the Investment in Subsidiary account to a Zero balance.

The Consolidation entry is the process of aggregating the financial statements of a parent company and its subsidiary company to form a consolidated financial statement that reports the overall financial results of the entire group of companies.

The journal entries made in the process of preparing consolidated financial statements for a business combination are known as Consolidation Entries. They are made to adjust the accounts in the financial statements of both the parent company and the subsidiary, so they reflect the financial position and performance of the consolidated group as a whole.

The following worksheet entries can be used to bring the Investment in Subsidiary account to a Zero balance:S. Dr. Investment in Subsidiary account. Cr. Retained Earnings account of Subsidiary Company.A. Dr. Retained Earnings account of Subsidiary Company. Cr. Dividend Received account. The purpose of this sequence of worksheet adjustments is to eliminate the effects of the subsidiary company's dividend payments to the parent company and any other previously unrealized intercompany profits on the Investment in Subsidiary account.

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Employee ________ are perks that are provided in addition to salaries and wages, such as all or part of medical, dental, life and disability insurance.
a. taxes
b. benefits withholdings

Answers

The correct word used to describe the given statement is "Employee benefits"

What is Employee Benefit?

This refers to those perks and good things which an employee enjoys which are work-related and include medical, dental, life insurance, etc.

Hence, we can see that these are part of the employment package and are usually negotiated before an employee is accepted into an organization and are for the well-being of the employee.

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technological advances allow smaller companies to compete with larger companies. group of answer choices true false

Answers

True, Technological advances allow smaller companies to compete with larger companies.

What is company?
A company is a legal entity created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate law of its jurisdiction, a company may be set up in a variety of ways for tax and financial liability reasons. The type of business structure a company chooses, such as a partnership, sole proprietorship, or corporation, will typically depend on the industry it operates in. The ownership structure of the business is also indicated by these structures. Additionally, they can tell private from public companies. Both have different ownership arrangements, laws, and rules regarding financial reporting.

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You are the senior software engineer at a start-up company developing an exciting new mobile app that will allow salespeople to generate and email sales quotes and customer invoices from their smartphones. Your company's sales force has led a major corporation to believe your product will be available next week. Unfortunately, at this point the software still contains quite a few bugs. The leader of the testing group has reported that all of the known bugs appear to be minor, but it will take another month of testing for his team to be confident the product contains no catastrophic errors. Because of the fierce competition in the mobile app industry, it is critical that your company be "first to market." To the best of your knowledge, a wellestablished company will release a similar product in a few weeks. If its product appears first, your start-up company will probably go out of business.

Answers

In this scenario, the start-up company developing an exciting new mobile app that will allow salespeople to generate and email sales quotes and customer invoices from their smartphones has to handle the challenge of being first to market.

As the senior software engineer, you need to weigh the risks and benefits of releasing a product with known bugs. In this situation, it is important to consider the risks of releasing a product with known bugs and the benefits of being the first to market. On one hand, releasing the product with known bugs could damage the reputation of the start-up company and result in lost sales. On the other hand, being first to market could give the company a competitive advantage and increase sales. The leader of the testing group has reported that all of the known bugs appear to be minor, but it will take another month of testing for his team to be confident the product contains no catastrophic errors. This means that the software still contains quite a few bugs, and there is a risk that some of these bugs could cause catastrophic errors.

To mitigate the risks of releasing a product with known bugs, the start-up company could consider delaying the release until all of the known bugs have been fixed. While this would delay the release of the product, it would also ensure that the product is of high quality and will not damage the reputation of the company.

In conclusion, it is important for the start-up company to balance the risks and benefits of releasing a product with known bugs. While being first to market could give the company a competitive advantage, releasing a product with known bugs could damage the reputation of the company. As the senior software engineer, you need to make a recommendation to the company based on your knowledge of the industry and the product.

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Discuss the retailer’s strategy in comparison to their competitor, highlighting any strengths or weaknesses. Reference any information sources or literature where relevant to support your analysis. (Approximately 750 - 800 words)

The following elements should be included:

1. A discussion of the online customer journey ‘layers’ and touchpoints.

2. Strengths and weaknesses of the retailer’s online strategy compared to their competitor.

3. Analysis of the integration of the retailer's physical retail and online strategies.

Note: your analysis should be supported by images from the retailer and competitor
websites.

The retailer is JB Hi-Fi and the competitor is Harvey Norman

Answers

1.) The online customer journey involves analyzing how customers interact with a retailer's website, including awareness, consideration, decision, and post-purchase stages.

2.) When comparing JB Hi-Fi and Harvey Norman's online strategies, it's important to assess their strengths and weaknesses in website design, user experience, product range, pricing, and promotions.

3.) Analyzing the integration of physical retail and online strategies involves evaluating how stores enhance the online experience with click-and-collect, in-store returns, and product availability checks.

1.) The online customer journey layers and touchpoints involve analyzing the various stages a customer goes through when interacting with a retailer's website. This includes the awareness stage, consideration stage, decision stage, and post-purchase stage.

Touchpoints refer to the specific points of interaction or channels through which customers engage with the retailer online, such as the website, social media, mobile apps, and customer service.

2.) When comparing the online strategies of JB Hi-Fi and Harvey Norman, it would be important to assess their strengths and weaknesses in terms of website design, user experience, product range and availability, pricing, and promotional strategies.

Customer reviews and ratings, personalized recommendations, ease of navigation and checkout process, delivery options, returns policy, customer support, and online marketing efforts.

3.) Analyzing the integration of the retailer's physical retail and online strategies would involve evaluating how well they leverage their physical stores to enhance the online experience, such as offering click-and-collect options, in-store returns for online purchases, or the ability to check product availability at nearby stores.

It also involves assessing how effectively they use their online presence to drive customers to physical stores through tactics like store locator tools, promoting in-store events, or offering exclusive in-store deals.

To conduct a comprehensive analysis of the strengths and weaknesses of JB Hi-Fi's and Harvey Norman's online strategies, it would be necessary to review their websites, online customer reviews, industry reports, and other relevant sources of information.

By considering factors such as customer experience, website functionality, product assortment, pricing competitiveness, and omnichannel integration, a more detailed analysis can be performed.

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The product life cycle refers to the stages a product moves through from the time it enters the market until the time

Answers

It's the stage by which a product move through from the time it enters the market until the time it is cleared. My own definition states that it's the length of time by which a product is introduced to consumers in the market until it has been removed

2023 leaf’s battery pack is located beneath the floor of the passenger compartment. What are the advantages of this platform?.

Answers

If 2023 leaf’s battery pack is located beneath the floor of the passenger compartment. The advantages of this platform is: It help to effectively maximize passenger as well as cargo space.

2023 leaf’s battery pack

The advantages of this platform in a situation were 2023 leaf’s battery pack is found  beneath the floor of the passenger compartment includes the following:

It helps to effectively  maximize passenger and cargo spaceThe low center of gravity helps to effectively enhance handling.

Therefore The advantages of this platform is: It help to effectively maximize passenger as well as cargo space.

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costs for office equipment in the first year of a business can run from approximately question 8 options: $500 to $1,500. $3,000 to $12,000. $6,000 to $18,000. $10,000 to $25,000.

Answers

The costs for office equipment in the first year of a business can run from approximately $3,000 to $12,000. Therefore, the option B holds true.

What is the significance of costs?

Costs can be referred to or considered as the amount to be incurred by a firm in order to ensure smooth functioning of its business operations. They vary from the department to department and the nature of the firm.

Costs such as office equipment can have a varying range for different natures of the firm. Most of the firms will have a cost for these equipments between $3,000 to $12,000. This range is not exhaustive, though.

Therefore, the option B holds true and states regarding the significance of costs for office equipments.

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list the two things the government does that fall under fiscal policy. (A.p.e.x.)

Answers

Explanation:

These two policies are combined in numerous ways to influence a country's economic situation.

Fiscal policy, together with monetary policy handled by central banks, is the primary means through which governments influence a country's economy. The two primary elements of fiscal policy are income taxes and government expenditures.

Amounts that are owed to a business are known as: Multiple Choice O accounts receivable. O accounts payable O capital. O expenses

Answers

Amounts that are owed to a business are known as Account payables. Option (b) is correct.

What is Business?

Business is a professional activity whose main function is to generate profit by buying and selling goods and services.

Accounts payable are amounts due to creditors for goods or services received that have not been paid yet.

Business liabilities are the amounts owed by a business at any one particular time. They're expressed as "payables" for accounting purposes. Unless you're running a complete cash business. paying and collecting only in cash, your business probably has liabilities.

Therefore, Option (b) is correct.

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Due TODAY!


A tour wholesaler is an example of a travel trade intermediary.


False

True

Answers

True I hope it’s right :)

It should be noted that A tour wholesaler is an example of a travel trade intermediary.

What is wholesaler?

wholesaler serves as a merchant middleman that get the produci from the producer and sell to the retailers, other merchants.

Therefore, a wholesaler is an intermediary agent in the chains of distribution.

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Toren Inc. employs one person to run its solar management company. The employee’s gross income for the month of May is $6,000. Payroll for the month of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of$400, state income tax of $75, health-care insurance premium of$200, and union dues of $50. The employee is responsible for covering 30% of his or her health insurance premium.
You have now been given the following additional information:
• May is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first$7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 70% of the health insurance premium.
B. Record the payment in cash of all employer liabilities only on June 1.

Answers

Employer liabilities are the obligations that an employer owes to their employees. Employer liabilities include payroll taxes, worker’s compensation insurance, and employee benefits such as health insurance, retirement plan contributions, and paid time off.

Record the payment in cash of all employer liabilities only on June 1: The employer liability for Toren Inc. for the first pay period in May is FICA Social Security and Medicare taxes, federal income tax, state income tax, FUTA and SUTA taxes, and 70% of the health-care insurance premium.

Gross income of the employee = $6,000

Social Security tax = 6.2% of $6,000 = $372

Medicare tax = 1.45% of $6,000 = $87

Federal income tax = $400

State income tax = $75

Union dues = $50

Employee health insurance premium = $200 x 30% = $60

FUTA tax = 0.6% of $7,000 = $42SUTA

tax = 5.4% of $7,000 = $378

Employer health insurance premium = $200 x 70% = $140

Total employer liabilities = $372 + $87 + $400 + $75 + $42 + $378 + $140 = $1,494

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True or False: Strip malls are usually climate controlled.

Answers

Answer: false

Explanation:

That’s the correct answer

The Strip malls are usually not the climate controlled, as it is the cause of the global warming.

What is the strip mall?

Strip mall is also called the strip center or strip plaza. This type of mall is basically the common shopping center in North America. In which the stores are arranged in a well-defined row, consisting of the sidewalk in their front.

It is not the climate controlled because these malls contribute to the global warming indirectly pollute the environment, as the energy generators causes the green house gases.

Therefore, the given statement is false.

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