2) The Club Auto Parts Company has just recently been organized. It is expected to experience no growth for the next 2 years as it identifies its market and acquires its inventory. However, Club will grow at an annual rate of 5% in the third and fourth years and, beginning with the fifth year, should attain a 10% growth rate which it will sustain thereafter. The last dividend paid was $0.50 per share. Club has a cost of capital of 12%. What should be the present price per share of Club common stock?

Answers

Answer 1

Answer:

$20.84

Step-by-step explanation:

div 1 = $0.50

div 2 = $0.50

div 3 = $0.50 x 1.05 = $0.525

div 4 = $0.525 x 1.05 = $0.55125

years 5 and beyond we need to use the growing perpetuity formula:

stock price = [div 4 x (1 + g)] / (r - g) = ($0.55125 x 1.1) / (12% - 10%) = $30.32

now to determine the current value of the stocks we must calculate the present value of the future dividends and stock price:

stock price = $0.50/1.12 + $0.50/1.12² + $0.525/1.12³ + $0.55125/1.12⁴ + $30.32/1.12⁴ = $0.45 + $0.40 + $0.37 + $0.35 + $19.27 = $20.84


Related Questions

Mindy deposits $250 into a savings account that pays simple interest. If the interest rate is 1.5%, what is her account balance at the end of a 2 years if she makes no withdrawals?

Answers

Answer:

Her account balance at the end of 2 years is $257.5.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

[tex]E = P*I*t[/tex]

In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

After t years, the total amount of money is:

[tex]T = E + P[/tex]

In this question:

Deposit of $250, so [tex]P = 250[/tex]

Interest rate of 1.5%, so [tex]I = 0.015[/tex]

2 years, so [tex]t = 2[/tex]

Amount of interest earned:

[tex]E = P*I*t = 250*0.015*2 = 7.5[/tex]

Total amount:

[tex]T = E + P = 7.5 + 250 = 257.5[/tex]

Her account balance at the end of 2 years is $257.5.

6. Erin wants to have more than $150 before she goes shopping for gifts for
the holidays. Each time she babysits, she earns $7.50 per hour. Write and
solve an inequality to find h, the number of hours Erin needs to babysit in
order to meet her goal.

Answers

Answer: Erin needs to babysit for 20 hours in order for her to meet her goal.

Step-by-step explanation:

7.50h < 150  divide each side of the equation by 7.50

h=20

This is a very hard question!! its a math riddle, the teacher said that something like this will be in our test.

My grandson is about as many days as my son in weeks, and my grandson is as many months as I am in years. My grandson, my son and I together are 120 years. Can you tell me my age in years ?

Answers

Answer:

72

Step-by-step explanation:

Let m be the age in years. If s is the son's age in years, then the son is 52x weeks old. If g is the grandson's age in years, then the will be grandson 365m days old. So....  the labels are for the equation.

365m = 52x.

Since the grandson is 12w months old,

12w = months.

Since the grandson,  son and the person together are 120 years,

m + x + months = 120.

these are the labels (m, x, and month)

month = 624 x 120 / 1041 = 72.

So, I am basically 72 years old.

hope this helped :D

this is truly very hard.

Answer:

72

Step-by-step explanation:

factorise :x^2y^2-16​

Answers

Answer:

(xy - 4)(xy + 4).

Step-by-step explanation:

The is the difference of 2 squares.  

a^2 - b^2 = (a - b)(a + b: so we have:

x^2y^2 - 16​ = (xy - 4)(xy + 4)

Molly wants to put a fence around an area. The fence will follow the diagram of the triangle shown below. (Look at picture) About how much fencing does Molly need?

Answers

Answer:

Step-by-step explanation:

43feet

6x + 2 = 26 what is the answer​

Answers

Answer: x=4

Step-by-step explanation:

Answer:

x=4

Step-by-step explanation:

6x+2=26

Subtract 2 from both sides to isolate the variable

6x=24

Divide by 6

x=4

PLEASE HELP AS SOON AS POSSIBLE!!!!!

Answers

Answer:

AT THE POINT NUMBER 2 IS INCORRECT !

Step-by-step explanation:

(06.03)
Given the box plot, will the mean or the median provide a better description of the center? (1 point)
+
15 20
+
0
5
10
25
30
35

Answers

Answer: The median will provide a better description of the center because the median is the middle number.

Step-by-step explanation:

Find the circumference &’ area. use 3.14 for piround answers to nearest tenths!
I WILL MARK YOU AS BRAINLIEST!

Answers

Answer:

A= 185.12 ft²

C=  12.56 ft

Step-by-step explanation:

Area of rectangle is 160 ft²

Area of semi-circle is 25.12 ft²

3.14*4*4=3.14*16=50.24

50.24/2=25.12

160+100.48=260.48 ft² ≈260.5 ft²

3.14*4=12.56

Answer:

185.136

Step-by-step explanation:

20×8=160ft²

3.142×4²= 50.272

50.272÷2=25.136

160+25.146= 185.136

Need help ASAP. WILL MARK BRAINLIEST.

Answers

Let's do it in general first; inner radius r, outer radius R.

Little circumference is 2πr, bigger is 2πR, difference is

d = 2π(R-r)

For us R-r = 2 feet so that's

d = 2 (22/7) (2) = 88/7 ≈ 12.57 feet

Answer: 12.6

ZB=
Round your answer to the nearest hundredth.
С
2
А
3
?
B

Answers

Answer:

B = 41.81

Step-by-step explanation:

sin B = opposite/ hyp

sin B = 2/3

Take the inverse sin of each side

sin ^-1 sin (B) =sin ^-1 (2/3)

B =41.8103149

To the nearest hundredth

B = 41.81

Plzzzzz answer ASAP help meh

Answers

Answer:

1= 8

3= 12

5= 16

7= 20

9= 24

Step-by-step explanation:

1+3=4x2=8

3+3=6x2=12

5+3=8x2=16

9+3=12x2=24

ANSWER:1=8

3=12

5=16

7=20

9=24

step -by - step explanation: 1+3=4×2=8

3+3=6×2=12

5+3=8×2=16

9+3=12×2=24

3x-y=8 in slope intercept form

Answers

Answer:

y=3x−8

Step-by-step explanation:

help me answer this <3

what two intergers does √75 fall between ?
a) 7 & 8
b) 8 & 9
c) 9 & 10
d) it's exactly 30

Answers

The answer is B
when taking a square root of 75 it is 8.66 which is between 8 and 9.

The height of a cone is twice the radius of its base.
What expression represents the volume of the cone, in
cubic units?
orx?
2/3 pi x ^3
4/3 pi x ^2
2 pi x^3
4 pi x ^3

Answers

Answer:

This first expression is correct

V= 2/3*pi*r³

Step-by-step explanation:

This problem bothers on the volume of a cone

We know that the volume of a cone is expressed as

V= 1/3πr²h

Given that h= 2r

Let us substitute h=2r in the formula above

V= 1/3πr²*2r

V= 2/3πr³

The Answer Is:

2/3pix^3

ayuda !! Es la representación gráfica de una variable cuantitativa continua que agrupa intervalos de clases y es representada en forma de barras a) Histograma b) Ojiva c) Polígono de frecuencia

Answers

Answer:

a) Histograma (histogram).

Step-by-step explanation:

First of all, a continuous variable only admits whole numbers, not decimals.

Now, in statitics, there are several way to reprepsent some data collected from a survey. The most popular tool are bar-graphs or histograms, they are used to show frequency distributions through graphs, where we use interval classes.

Therefore, the right answer is a.

SERIOUS MATH HELP PLEAZE
SHOW WORK OR AN EXPLANATION
HELPPPPPPPPPPPP

Answers

Answer:

The correct answer is B.

Step by step explanation:

Domain of [tex]x^2-4 : \left [ {{Solution : - \infty} <x<\infty}} \atop {Interval Notation: (-\infty, \infty})}} \right][/tex]

Range of [tex]x^2-4:[/tex][tex]x^2-4 : \left [ {{Solution : f(x)\geq -4}} \atop {Interval Notation: [-4, \infty})}} \right][/tex]

Axis interception points of [tex]x^2-4 :[/tex] X Intercepts: [tex](2,0), (-2,0)[/tex], Y Intercepts: [tex](0,-4)[/tex]

Vertex of [tex]x^2-4:[/tex] Minimum [tex](0,-4)[/tex]

Hope this helps. If so, may I get brainliest and a thanks?

Thank you, Have a good day!

The table represents the equation y=8x what y-value is missing from the table

Answers

Answer:

Step-by-step explanation:

There must be an attachment. I have no knowledge of what to solve for, unless you can tell or show me the missing pieces.

Answer: 1, 3 , 5, and 6

I took the test have a great day!

             

solve 25+8m =73 M=....​

Answers

Answer:

25+8m=73

We move all terms to the left:

25+8m-(73)=0

We add all the numbers together, and all the variables

8m-48=0

We move all terms containing m to the left, all other terms to the right

8m=48

m=48/8

m=6

Answer:

[tex]m = 6[/tex]

Step-by-step explanation:

[tex]25 + 8m = 73 \\ 8m = 73 - 25 \\ 8m = 48 \\ \frac{8m}{8} = \frac{48}{8} \\ m = 6[/tex]

Pls help guys! 15 points!
Select all of the following true statements if R = real numbers, N = natural numbers, and W = {0, 1, 2, ...}.
a) W c N
b) {0, 1, 2, ...} c_W
c) {no solution} c N
d) 9 e W
e) R c W
f) -5 e W

Answers

Answer:

B AND C

Step-by-step explanation:

Answer:

It should be B and C

Step-by-step explanation:

Which angle is coterminal to 2pi/3

Answers

the correct answer is -4π/3.

A rectangle is sometimes, always, never similar to another rectangle

Answers

Two rectangles can be similar, but that's not always guaranteed.

In fact, similar shapes have the same angles and correspondant sides in proportion.

All rectangles will always have four right angles, so we only have to worry about the sides.

Let [tex]a,b[/tex] be the sides of a rectangle, with [tex]a\leq b[/tex]. Let [tex]c,d[/tex] be the sides of a rectangle, with [tex]c\leq d[/tex].

Then, the two rectangles are similar if and only if

[tex]a\div c=b\div d[/tex]

So, for examples, a rectangle with dimensions 3 and 7 is similar to a rectangle with sides 6 and 14 (both sides have been doubled), but it's not similar to a rectangle with sides 6 and 21 (one side has been doubled, the other has been tripled).

Monica's family is thinking about going on a vacation. They are debating about whether
to go to Florida, Italy Mexico, or England. They are also trying to decide whether to go for
1 or 2 weeks. List the sample space (all of the possible outcomes) for their vacation
Destination
Vacation
Florida, Italy,
Mexico, England
1 week, 2 weeks​

Answers

Answer:

{FL1, FL2, IT1, IT2, ME1, ME2, EN1, EN2}

Step-by-step explanation:

This is each location paired with one week, and each location paired with two weeks.

Answer:

c

Step-by-step explanation:

I need help preciate it

Answers

Answer:  x=1

They all have 1 for their x coordinate; 'nuff said.

Jim had $2,052.24 in his checking account. He wrote a check to pay for two airplane tickets. His account now has $1,084.12. How much did each ticket cost?

Answers

Each ticket cost $484.06

Answer:

$484.06

Subtract 1084.12 from 2052.24 and that equals 968.12  then you divide that by 2

Lee has a bag with 500 quarters. Some are the older eagle quarters, and others are the
newer state quarters. She pulls out 10 quarters at random. Four are eagle quarters, and 6 are
state quarters. Based on this sample, how many of the quarters in the full bag were likely to
be eagle quarters?
300
100
400
200?

Answers

Answer:

400

Step-by-step explanation:

The 200 quarters in the full bag were likely to be eagle quarters.

What is the ratio?

In mathematics, ratios are used to determine the relationship between two numbers it indicates how many times is one number to another number.

Given that:-

Lee has a bag with 500 quarters. Some are the older eagle quarters, and others are thenewer state quarters. She pulls out 10 quarters at random. Four are eagle quarters, and 6 arestate quarters. Based on this sample, how many of the quarters in the full bag were likely tobe eagle quarters

We can conclude from the given data that the ratio of the Eagle and state quarters is 4:6 or 2:3 suppose the common factor is a so the value will be calculated as:-

E  +  S  =  500

2a  +  3a  =  500

5a   =  500

a  =  100

E  =  2a

E   =  2  x  100 =  200

Therefore 200 quarters in the full bag were likely to be eagle quarters.

To know more about ratios follow

https://brainly.com/question/2328454

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Pythagorean theorem :

There’s no diagram or anything. You can just make a triangle ? :)
Looking for A
A= ?

Answers

The correct answer is 4.

PLEASE HELP!! WILL GIVE BRAINLIESTTTT
Jackie has a choice of 3 pairs of shoes, 3 pants, and 4 shirts that can make an outfit for today. Each pair of shoes has a different heel height, each pair of pants is made from a different fabric, and each shirt is a different color.

Jackie randomly picks some clothes.

What is the probability that she chooses an outfit consisting of the flat heel or spike heel shoes, the twill or the denim pants, and the white or black shirt?

Answers

2/13+2/13+2/13

= 6/13

Step-by-step explanation:

The probability that she chooses an outfit consisting of the flat heel or spike heel shoes, the twill or the denim pants, and the white or black shirt is given by P ( A ) = 22.22 %

What is Probability?

The probability that an event will occur is measured by the ratio of favorable examples to the total number of situations possible

Probability = number of desirable outcomes / total number of possible outcomes

The value of probability lies between 0 and 1

Given data ,

Jackie has a choice of 3 pairs of shoes, 3 pants, and 4 shirts that can make an outfit for today.

Each pair of shoes has a different heel height, each pair of pants is made from a different fabric, and each shirt is a different color.

So , There are a total of 3 x 3 x 4 = 36 possible outfits.

The number of outfits with the specified choices is:

2 (choices of shoes) x 2 (choices of pants) x 2 (choices of shirts) = 8

Therefore, the probability that Jackie chooses an outfit consisting of the specified choices is:

8 / 36 = 2 / 9 ≈ 0.2222 or about 22.22%

Hence , the probability is P ( A ) = 22.22 %

To learn more about probability click :

https://brainly.com/question/17089724

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Solve 3.4 [ 6 ( 4) +6^2]

Please show your work! <3

Answers

Answer:

204

Step-by-step explanation:

3.4[6(4)+6^2]=

3.4[24+36]=

3.4[60]=

204

Hope this helps!

Rhianna has a spinner, which is divided into four equal parts. The parts are numbered 1, 2, 3, and 4. If Rhianna spins the spinner and tosses a coin, which table shows all the possible outcomes?
A 5-column table with 2 rows. Column 1 has entries H, H. Column 2 is labeled 1 with entries H 1, H 1. Column 3 is labeled 2 with entries H 2, H 2. Column 4 is labeled 3 with entries H 3, H 3. Column 5 is labeled 4 with entries H 4, H 4.
A 5-column table with 2 rows. Column 1 has entries T, T. Column 2 is labeled 1 with entries T 1, T 1. Column 3 is labeled 2 with entries T 2, T 2. Column 4 is labeled 3 with entries T 3, T 3. Column 5 is labeled 4 with entries T 4, T 4.
A 5-column table with 2 rows. Column 1 has entries H, T. Column 2 is labeled 1 with entries H 1, H 1. Column 3 is labeled 2 with entries T 2, T 2. Column 4 is labeled 3 with entries H 3, H 3. Column 5 is labeled 4 with entries T 4, T 4.
A 5-column table with 2 rows. Column 1 has entries T, H. Column 2 is labeled 1 with entries T 1, H 1. Column 3 is labeled 2 with entries T 2, H 2. Column 4 is labeled 3 with entries T 3, H 3. Column 5 is labeled 4 with entries T 4, H 4.

Answers

Answer:

{H 1 , H 2, H 3 , H 4, T 1, T 2, T 3, T 4}=8

Step-by-step explanation:

Answer:

H 1 , H 2, H 3 , H 4, T 1, T 2, T 3, T 4 I think

Step-by-step explanation:

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