You are considering purchasing stock.The stock is expected to pay a dividend of $87 per share. The consensus of investors is that these dividends will increase at a rate of 3 percent per year for indefinate future, and the interest rate is 7 percent. The price of stock should be ___.

Answers

Answer 1

Answer:

Answer:

The price of stock should be $2,175

Explanation:

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Formula to calculate the value of stock

Price = Dividend / ( Rate or return - growth rate )

Price = $87 / ( 7% - 3% )

Price = $87 / 0.07 - 0.03 )

Price = $87 / 0.04

Price = $2,175

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How many free credit reports are you legally entitled to each year

why do you think governments want to influence the supply of alcohol and tobacco products by imposing excise taxes?

Answers

so that the government earn more revenue .Few governments for exampe India people are still ready to pay high to consume alcohol and tobacco,So therefore Indian government charges high tax(not too high) so that the consumers doesn't decrease their consumption and increase the government revenuesto reduce the consumption .if taxes are high people might refuse to buy tobacco and alcohol thus reduces the consumption

Identify sources of information and advice about methods and services for managing personal finances

Answers

Retained earnings, equity, term loans, debt, letter of credit, debentures, euro issuance, working capital loans, venture investment, etc. are some of the sources of corporate financing.

What do you mean by Personal Finance?

Personal finance is an essential component of managing your current financial demands as well as future financial planning. Your long-term financial prospects for actions like investing or retirement planning will be greater the sooner you gain control over your personal finances.

A lot of information about a company's financial stability can be found in its financial statements. The Financial Statements of a company can be used to extract the majority of its information. Both its creditors and debtors can provide financial information.

Banking, professional guidance, Financial management, Investment funds, Insurance, Stock Exchange, Instruments of the Treasury or Debt Tax/Audit Consulting are personal finance services.

Therefore, Sources of information and advice about methods and services for managing personal finances are mentioned above.

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Budgeting is the key to manage personal finances. In order to realize budgeting one must be able to determine the importance of savings and manage expenses properly. Proper projection of expenses and savings should also been taken in order to maximize proper budget managing.

To build up a good credit history, you should:

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To build good credit one should pay bills on time, keep low credit utilization, diversify credit, avoid excessive applications, monitor reports, establish a long credit history and communicate with creditors.

Pay your bills on time, maintain a low credit utilization rate, diversify your credit products, refrain from making too many credit card applications and keep an eye on your credit reports in order to establish a good credit history. Make sure your credit history is extensive, keep in touch with your creditors when facing financial difficulties and practice sound money management.

A good credit history can be built and maintained by consistently exhibiting responsible credit behavior such as on time payments and responsible credit usage. A higher credit score and easier access to credit opportunities with favorable terms can result from this. Regular credit report monitoring makes it easier to spot and quickly fix any mistakes or discrepancies. A patient disciplined and proactive approach to managing one's financial obligations are necessary to establish a solid credit history.

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Answer:

Get a Social Security Number if you do not already have one

Explanation:

Lily has suffered severe injuries from a car accident. She would like to sue for compensation, but does not have enough funds on hand to retain an attorney on her own. What is the best type of fee arrangement for Lily?a. Hourly feeb. Contingency feec. Fixed feed. Administrative fee

Answers

Answer:

What is the best type of fee arrangement for Lily?

b. Contingency fee

Explanation:

Contingency fee. Those clients do not have to give us any money at the start of the case to represent them.

In the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves isA) vertical.
B) horizontal.
C) positively sloped.
D) negatively sloped.

Answers

Answer:

A) negatively sloped.

Explanation:

Usually the demand for reserves is negatively sloped, like any normal demand curve, due to the inverse relationship between quantity demanded and price (interest rate is the price of money).

The demand curve for federal funds will have a negative slope until the interest rate paid on excess reserves equals the federal funds rate. At this point, the demand curve will become infinitely elastic, and therefore horizontal.

Which strategy did companies use to stop strikes from growing?

Answers

The best strategy companies should do to stop labor strikes is to follow what the strike wants: pay raise, more benefits, and many more.

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Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, and that 2018 year-end bonuses to employees will total $1290000. In Bonita's interim income statement for the six months ended June 30, 2018, what is the total amount of expense relating to these two items that should be reported?