The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.52 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely.

Required:

a. If investors require a 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?
b. What will the price be in 8 years?

Answers

Answer 1

Answer:

A. $40.66

B. $69.86

Explanation:

A. Calculation for what is the current price

Using this formula

Current price=Dividend per share(1+Expected constant rate)/ (Require return percentage-Expected constant rate)

Let plug in the formula

Current price=1.52(1+.07) / (.11-.07)

Current price=1.52(1.07) / (.11-.07)

Current price=1.6264/0.04

Current price=$40.66

Therefore the Current price will be $40.66

b. Calculation for What will the price be in 8 years

Using this formula

Price=Dividend per share(1+Expected constant rate)^Numbes of years/ (Require return percentage-Expected constant rate)

Price=1.52(1+.07)^9/ (.11-.07)

Price=1.52(1.07)^9/ (.11-.07)

Price=2.7945/0.04

Price=$69.86

Therefore What will the price be in 8 years is $69.86


Related Questions

Opportunity cost occurs because of a producer’s need to

limit resources.
protect resources.
allocate resources.
spend resources.
Mark this and return

Answers

Answer:

allocate resources.

Explanation:

Scarcity of resources makes producers make choices on how to use the few available resources. Like other people, producers will want to do many things but are restricted by a lack of resources. Time and money are examples of scarce resources. They have to allocate the available resources among different needs and wants.

Opportunity cost is measured by calculating the value of the next best alternative.

Answer:

C On Edge Jan 2021

Explanation:

Discuss how expatriates experience reverse culture shock in the repatriation process. What can companies do to help expatriates continue to be part of their home communities? If you were going through the repatriation process, what would you want the company to do for you and your family?

Answers

Answer:

fvsvfdc

Explanation:

A company reported average total assets of $1,240,000 in Year 1 and $1,510,000 in Year 2. Its net operating cash flow was $102,920 in Year 1 and $138,920 in Year 2. (1) Calculate its cash flow on total assets ratio for both years. (2) Did its cash flow on total assets improve in Year 2 versus Year 1

Answers

Answer:

A. Year 1 8.3%

Year 2 9.2%

B. Yes

Explanation:

(1) Calculation for its cash flow on total assets ratio for both years

Using this formula

Cash flow on total assets ratio =Net operating cash flow/Average total assets

Let plug in the formula

Year 1 Cash flow on total assets ratio=$102,920/$1,240,000

Year 1 Cash flow on total assets ratio=8.3%

Year 2 Cash flow on total assets ratio= 138,920/1,510,000

Year 2 Cash flow on total assets ratio= 9.2%

(2) Based on the above calculation YES it's cash flow on total assets improve in Year 2 versus Year 1

Q1. While walking to the local electronics store, MusicLover ponders his desire for a high-end noise cancelling headset with soft leather earcups, and realizes that he would purchase it if it were priced at $150, or $180, or even $195, but not at $210. On arriving at the store, he finds that the product is priced at $170. He buys it! Based on this information, Which number is closest to MusicLover's reservation price or willingness-to-pay (WTP) for the headset

Answers

Answer: b. $200

Explanation:

A person's willingness-to-pay refers to the maximum price they would be want to pay for a good or service. For instance, if you refused to pay more than $25 for a jar of honey, your willingness-to-pay for the jar of honey is $25.

In this scenario, MusicLover will buy the headset if they are $195 but not if they are $210. His willingness to pay is therefore between $195 and $210. From the options, the only figure in that range is option B with $200.

James Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock outstanding, and its total stockholders' equity equals $500,000. The book value per common share is:

Answers

Answer:

The book value per common share is: $19.6

Explanation:

1,000 × 10 = 10,000

500,000 - 10,000 = 490,000

490,000 ÷ 25,000 = 19.6

Standard Deviation (%) R 2 Beta Standard Error of Beta TDM 13 0.49 0.83 0.11 LLW 21 0.01 0.21 0.25 What proportion of each stock's risk was market risk, and what proportion was specific risk

Answers

Answer:

Note: These values are not from this question, as this question is incomplete and lacks necessary data. So, in order to solve this question and deliver you the main concept. I have chosen some random values.  

Answer is explained in the explanation section.                                                                              

Explanation:

Solution:

Data Given:

This question is about the two well known Canadian Stocks namely:

1. Toronto Dominion Bank

2. Research in Motion.

Data For Toronto Dominion Bank:

For answering about the proportion of risk involved in each of stocks, we just need the value of [tex]R^{2}[/tex].

Note: These values are not from this question, as this question is incomplete and lacks necessary data. So, in order to solve this question and deliver you the main concept. I have chosen some random values.

[tex]R^{2}[/tex]  value for TDB = 0.77

[tex]R^{2}[/tex] value of 0.77 means, 77% of the risk is derived from the market movements. So we can say it as this 0.77 or 77% of proportion for Toronto Dominion Bank is of market risk.

Generally speaking, in market risk there is the probability that people will lose their investments due to the factors that create negative impacts on the market.

Whereas, specific risk is totally opposite to market risk and people specific to any company or group may experience losses but not the whole market, which is the case in market risk.

Where as, remaining 0.23 or 23% of the risk is unique risk or specific risk.

Similarly for the other stock:

[tex]R^{2}[/tex] value for Research in Motion = 0.44

[tex]R^{2}[/tex] value of 0.44 means 44% of the risk is derived from the movements of the market or it is market risk. On the other hand, remaining 0.66 or 66% of the risk is specific risk or unique risk.

Sources of economic growth would include an increase in:

a. Investment spending.
b. Financial investment.
c. Consumer spending.
d. Government spending.
e. Consumer saving

Answers

Answer:

Option e: Consumer saving

Explanation:

Consumer saving shows that the economy of a given country is growing. When a citizen of a country is employed, then unemployment decreases and consumers can be afford to buy some of their needs and still save some amount of money or valuables for future use. It shows that the economy growth is increasing in that country.

An increase in consumer savings can lead to more production, investment and others.

if you invest $200 the end of each month over the next 20 years in a mutual fund that has a nominal annual rate of 12% how much will you get at the end of 20 years

Answers

Answer:

I will get $197,851 at the end of the 20 years.

Explanation:

Note: It is assumed the interest is compounded monthly

Use the following formula to calculate the amount to be received after 20 years

Future value of annuity = Annuity payment x ( ( ( 1 + periodic interest rate )^ Numbers of periods ) - 1 ) / periodic interest rate )

Where

Annuity Payment = $200 monthly

Periodic Interest rate = Nominal Interest rate / Numbers of periods in a year = 12% / 12 months = 1%

Numbers of periods = Numbers of years x Numbers of periods in a year = 20 years  x 12 months = 240 months

Placing values in the formula

Future value of annuity = $200 x ( ( ( 1 + 1% )^240 ) - 1 ) / 1% )

Future value of annuity = $197,851.07

Future value of annuity = $197,851

The operational improvement cycle is referred to as the: a. 5S cycle b. FMEA cycle c. DMAIC cycle d. Generate - Integrate - Interpret - Act cycle

Answers

Answer:

The operational improvement cycle is referred to as the:

c. DMAIC cycle

Explanation:

The DMAIC cycle involves continuous operational improvement.  The 'D' stands for 'to define' the process.  The 'M' stands for ' to measure' or quantify the performance process.  The 'A' stands for ' to analyze' performance to determine root causes.  The 'I' stands for 'to improve; the process.  The 'C' stands for control to achieve benefits.  These processes are the Sigma Six improvement processes that have been proven to yield improved organizational processes.

True or False: The date line of a balance sheet depicts a specific day and not a period of time.

Answers

The answer is true, hope that helps!!

Kaye Blanchard is 50 years old. She has $48,000 of adjusted gross income and $11,600 of qualified medical expenses. She will be itemizing her tax deductions this year. How much of a tax deduction will Kaye be able to deduct (assume 10% floor for deduction)

Answers

Answer:

$6,800

Explanation:

Calculation for How much of a tax deduction will Kaye be able to deduct (assume 10% floor for deduction)

Tax deduction=$11,600-(10%*$48,000)

Tax deduction=$11,600-$4,800

Tax deduction=$6,800

Therefore the amount of tax deduction that Kaye will be able to deduct (assume 10% floor for deduction) is $6,800

Do you agree with the decision from below mention case?

While driving his employer’s vehicle to call on a customer, Mandel decides to stop at his bank—which is one block off his route—to make a personal deposit. Mandel then negligently runs into a parked vehicle owned by Kelly. In this situation, because Mandel’s detour from the employer’s business is not substantial, he is still acting within the scope of employment, and the employer is liable.

The result would be different, however, if Mandel had decided to pick up a few friends for cocktails in another city and in the process had negligently run into Kelly’s vehicle. In that situation, the departure from the employer’s business would be substantial, and the employer normally would not be liable to Kelly for damages. Mandel would be considered to have been on a "frolic" of his own.

Answers

Answer:

I do agree with the decision.

Explanation:

Luckily for all of us, employees are still human beings. As such, we are allowed certain privileges when using a company's car, e.g. we are allowed to go to a coffee shop to buy a cup of coffee or eat something while we are using the car. In this case, Mandel went to the bank, which was only 1 block away form his route, which is still under the normal scope of what an employee can do. He could argue that he wanted to check his bank account were he deposits his paycheck.

It is very different if Mandel does something irresponsible like going out with friends or drinking. In no way these actions can be related with his normal employment activities.

Lisa is trying to earn some extra money for a cruise she's taking in a few months, so she's made sure to book her days so that she has back to back clients. Today she's scheduled some clients to come in for simple washes and cuts between applying and finishing color treatments for other clients. Lisa plans to clean up at the end of her day to save time. What is the ergonomic issue with this situation? Select the best option. This will make her customers annoyed. She won't have enough time to perform each service. It's against licensing policy to schedule services like this. She will have long periods of holding the same posture.

Answers

Explanation:

would it be the overexaustion? I'm not even sure if its a word

Lisa is trying to earn some extra money for a cruise she's taking in a few months, so she's made sure to book her days so that she has back-to-back clients. Today she's scheduled some clients to come in for simple washes and cuts between applying and finishing color treatments for other clients. Lisa plans to clean up at the end of her day to save time. She will have long periods of holding the same posture. The correct option is D.

Why is ergonomics an issue?

Muscle fatigue, muscle imbalances, and strain are all consequences of poor ergonomics. Performing the same motion repeatedly can lead to numerous muscle strains. These develop into repetitive stress injuries, some of the most frequent workplace accidents.

Working in uncomfortable positions or holding one position for a long time. assuming positions that strain the body, such as bending over to use a knife with the wrists bent or twisting the torso while lifting, or repeatedly reaching above shoulder height.

Thus, the ideal selection is option D.

Learn more about ergonomics here:

https://brainly.com/question/17408983

#SPJ2

If the free market (private) equilibrium quantity is greater than the socially optimal quantity, one can infer that:

Answers

Answer:

The only that socially optimal quantity is lower than the equilibrium quantity is that the production of that specific good results in a negative externality. Negative externalities reduce social benefits of third parties, even though they do not actively participate in any type of transaction.

Discuss the causes of changes in a currency swaps value over time. Is it possible to close out a currency swap before it reaches maturity

Answers

Answer: When a swap is agreed on by both parties involved, a cash flow of bonds in different currencies are agreed upon to be exchanged.

Explanation:

The cash flows of two bonds in separate currencies are negotiated upon to be traded when a swap is initiated. At the existing spot exchange rate, these bond-like cash flows have the same present value. Evidently, shifts in the exchange rate change the value of one side of the swap relative to the value of the other side of the swap. Furthermore, interest rate rises reduce the present value of currency.

The current value of cash flows is increased by flows and decreases in interest rates. Changes in interest rates and exchange rates thus offer meaning to currency swaps.

One side is triumphant and the other loses. By making the party that lost money in the swap pay this amount to the party that has gained value in the swap, it is possible to close a swap.

Which of the following statements is normative? Group of answer choices Congress gives certain business corporations tax breaks. Tax breaks can lead to additional production. Tax breaks can change corporate behavior. Congress gives too many tax breaks to corporations.

Answers

Answer: Congress gives too many tax breaks to corporations.

Explanation:

Normative statements are said to be statement of opinion and not fact.

Option D is therefore a normative statement because it is the opinion of the speaker that congress gives too many tax breaks because from a neutral standpoint, it cannot be said with certainty the number of tax breaks that will be considered too much.

The other options are statements of fact.

You can buy an item for $140 on an in-store payment plan with the promise to pay $140 in 90 days. Suppose you can buy an identical item for $128 cash. If you buy the item for $140, you are in effect paying $12 for the use of $128 for three months. What is the effective annual rate of interest

Answers

Answer:

the effective annual rate of interest is 37.50%

Explanation:

The computation of the effective annual rate of interest is as follows:

Interest = Principal × rate × time period

$12 = $128 × rate × 3 months ÷ 12 months  

$48 = $128 × rate

rate = 37.50%

Hence, the effective annual rate of interest is 37.50%

We simply applied the above formula so that the correct annual rate could come

Why is it important for manufacturing companies to know the manufacturing cost of each of the products they make

Answers

Answer:

Manufacturing cost per unit is important to monitor. These, in many ways, represent the efficiency of the production process. If labor, material, or overhead costs appear too high then action must be taken. You must change and balance all of these costs to maximize shareholder value.

if the united states imposes an import quota on imported soybeans, how much will the united states produce domestically

Answers

Answer:

If the United States imposes an import quota, domestic production will rise, from what was produced at the world price (because the world price is the price the equilibrium price in the absence of tariffs), to the level of production determined by the domestic price.

Explanation:

This increase in production will only benefit domestic producers though, because they will now sell a higher quantity at a higher price, raising their incomes substantially.

Consumers, however, will be worse off, because before the tariff, they could buy the same amount of soybeans at the lower world price, but with the tariff, they are obliged to purchase the soybeans at the higher domestic price, lowering their available income for other goods and services.

Brent has to complete a final group project and his group members aren't
doing their share of the work. Brent generally believes in being kind to others,
but at the last group meeting, he was so frustrated that he yelled at the group
and threatened to stop working on the project. Which value system is mainly
in question here?
A.ethics
B.law
C.business law
M.morality

Answers

Answer: M. Morality

Explanation:

Morality is the value system is mainly in question here. Hence, option D is correct.

What is Morality?

Moral and just standards define what constitutes unacceptable behavior in society and what constitutes right and acceptable behavior.

A civilisation uses moral standards to decide what is reasonable, right, or acceptable. The majority of nations agree that murder is evil, while some grant an exemption for murder committed when waging a war to defend the nation or when acting in self-defense.

According to Louis Pojman, morality has five objectives: "keep society from disintegrating," "lessen human suffering," "promote human flourishing," "resolve conflicts of interest in just and orderly ways," and "give praise and blame, reward the good, and punish the guilty".

Thus, option D is correct.

For more information about Morality, click here:

https://brainly.com/question/13324831

#SPJ2

Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $4,300 and a fair market value of $15,000. Kelsey will invest a building with a book value of $34,600 and a fair market value of $57,600. What amount will be recorded to Kelsey's capital account

Answers

Answer: $57600

Explanation:

The capital account of a business indicates the net worth it that particular business. The fair value of an asset brings about an increase to the capital account.

In this scenario, the amount that will be recorded to Kelsey's capital account will be her fair market value of the building which is $57,600.

2019 balance sheet showed net fixed assets of $5.2 million, and the 2020 balance sheet showed net fixed assets of $5.8 million. The company’s 2020 income statement showed a depreciation expense of $335,000. What was the company's net capital spending for 2020?

Answers

Answer: $935,000

Explanation:

Net capital spending refers to the amount spent on acquiring new fixed assets.

= 2020 net fixed assets + 2020 depreciation - 2019 net fixed assets

= 5,800,000 + 335,000 - 5,200,000

= $935,000

A g drought ravaged crops across the United States during the summer of 2012. What is the likely impact of this drought on the price of corn

Answers

Answer: Increase

Explanation:

The price of corn will increase sharply due to the relative scarcity of corn in the market.

Graphically depicted, the Supply curve will shift to the left due to reduction in supply of corn brought upon by the drought. It will then intersect with the demand curve to bring about a new equilibrium price with a higher price.

itemise the importance of marketing in an economy

Answers

Answer:

Marketing drives a consumer economy, promoting goods and services and targeting consumers most likely to become buyers. Higher sales for a business that employs successful marketing strategies translate into expansion, job creation, higher tax revenue for governments and, eventually, overall economic growth.

Assume the CPI increases from 100 to 110 and a person's nominal income increases from $50,000 to $55,000 over the same period. This person's real income has

Answers

Answer and Explanation:

The computation of the real income percentage is as follows:

The Increase in CPI would be

= (110 - 100) ÷ 100 × 100

= 10%

And, the increase in nominal income is

= ($55,000 - $50,000) ÷ ($50,000) × 100

= 10%

As the CPI and increase in nominal income percentage is same

SO the real income would also remains the same

During a period, 38,200 units were completed and 5,300 units were in ending WIP Inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs

Answers

Answer: 40,850 units

Explanation:

38,200 units were already completed.

Of the ending WIP, conversion costs were:

= 50% * 5,300

= 2,650 units

Total Equi. units = 38,200 + 2,650

= 40,850 units

paid rent of Rs.25000 by cheque. make journal entry ​

Answers

Answer:

see below

Explanation:

Rent is an expense to the business. An increase in expenses is debited.

rent was paid by cheque. The transaction will reduce money held at the bank( asset) by Rs. 25,000. A reduction in assets is credited.

The journal entry will be

Rent A/c  Dr. Rs. 25,000

Bank A/c           Cr. Rs. 25,000

1. Values in a chart must be:
Select the correct option.
O a. Numbers
O b. Words
O c. Months
O d. Columns

Answers

Answer:

a. Numbers

Explanation:

The values in a chart represent data. Anyone reading a chart should be able to interpret the information presented with relative ease. Due to the space factors, the values of a chart are always in numbers.  Values in number form take little space compared to words.

Numbers are clear and easy to understand for everyone. When a value is very big, writing it in words may pose a challenge for some people to understand.

Outline and discuss the major categories of reimbursements and costs in a health care organization. How do they influence each other

Answers

Answer:

In healthcare organisations, main compensation and expense divisions focus on where they are utilised; there's many various types of entities, including such: profits, non-profit as well as residential. Stockholders of benefit organisations on the company and earn income from them.

Non-profit agencies raise revenue from their patient/consumer programmes and are prohibited from collecting tolls. In private coverage, the organisation department will supply the healthcare professional with direct payment.

The category of service user, such as as someone who spends with his own funds and someone who uses  different private programmes available in market.

Distinguish between small and large office.

Answers

Answer:

A small office is usually found in a small organisation because the volume of clerical activities is small.  An example of a large office is a bank. A factory could also be an example of a large office if it has more than ten people working in it. In a large office, work is divided among the many clerical workers.

Other Questions
Which answer choice could be used as evidence or supporting information for the following claim? Students today need to learn to type on a keyboard. OA)Students are required to learn too much in school these days, and they are frequently too tired to complete their homework. OB)Sending electronic messages is the most frequent method of communication in 80 percent of professional occupations.OC) Computer keyboards are likely to be smaller and thinner in the future; some might even be virtual. OD) Excessive typing can cause pain in fingers, wrists, and other joints. Why are they called epic poems According to mr.lee announcement, which of these might be the focus of his campaign Pls help me!!! And thank yiuuu!!! Complete the table of values for the function f(x) = (1/3)x for a, b, and c. x : -2, -1, 0, 1, 2. f(x) : a, b, c, 1/3, 1/9 The speed you read on a speedometer is ____. Is this Inform, persuade, or entertain. And Is this a story, poem, or drama NEED HELP FAST PLEASE.Please answer all these.AND BECAUSE YOUR GONNA ANSWER ALL OF THEN IMA GIVE YOU 50 POINT How do I give brainliest I forgot whoever lets me know how I will give them it At a team meeting, your manager addresses some of the discord between your team members and suggests that your team should work individually instead of as a group. She asks if anyone has an opinion on the subject. You know that there are often tough times when working in a group, but in the end your team always produces great results. What could you say to convince your manager to keep your team working together I need HELP ME PLEASE David works in a department store selling clothing. He makes a guaranteed salary of $250 per week, but is paid a commision on top of his base salary equal to 5% of his total sales for the week. How much would David make in a week in which he made $1500 in sales? How much would David make in a week if he made xx dollars in sales? C=5/9(F32)The equation above shows how temperature F, measured in degrees Fahrenheit, relates to a temperature C, measured in degrees Celsius. Based on the equation, which of the following must be true?1. A temperature increase of 1 degree Fahrenheit is equivalent to a temperature increase of 5/9 degree Celsius.2. A temperature increase of 1 degree Celsius is equivalent to a temperature increase of 1.8 degrees Fahrenheit.3. A temperature increase of 5/9 degree Fahrenheit is equivalent to a temperature increase of 1 degree Celsius.A) I onlyB) II onlyC) III onlyD) I and II only Question 1 of 10Read the following lines from "Wash of Cold River" by H. D.:rare, pure of texturebeautiful space and line,marble to graceyour inaccessible shrine.How do these lines show elements of formal verse?O A. They show a clear pattern of end rhyme.O B. They have the same number of syllables.O C. They follow a structure similar to a ballad.O D. They are written in strict iambic pentameter. A train leaves the station heading south on the tracks. It takes the train 5 seconds to reach 50 miles per hour. It completes the entire 100-mile trip in two hours. Calculate the train's average speed and velocity over the two-hour trip. Show your work. Identify if each of the measurements are a scalar or vector quantity What kind of office is a permanent office? Choose the equations in which w = 100 makes the equation true. A. 0.54 w = 0.0054 B. 4,086 w = 4.086 C. 362.7 w = 3.627 D. 5.3 w = 0.0053 E. 21.9 w = 0.219 Which process creates two new cells from one existing cell in order to maintain homeostasis? (4 points) a Cell division b Cellular respiration c Photosynthesis d Reparation A field of 3 acres with a runoff coefficient of 0.55 and a field of 5 acres with a runoff coefficient of 0.75 experience a rainfall intensity of 5.5 in/hr. If the runoff drains to a common collector, the peak flow in the collector is most nearly; who want head...no but frr?