mba inc. will pay a dividend for the first time at the end of 2013. it projects the following dividend per share: 2013 $1.50 2014 $2.00 2015 $2.50 beginning with 2016 dividends will grow at 4% per year. the required rate of return is 12%. the intrinsic value of mba shares is group of answer choices

Answers

Answer 1

The intrinsic value of MBA Inc. shares is found to be $21.83 for the given dividends.

The dividend per share projected by MBA Inc. is given below:

2013: $1.50

2014: $2.00

2015: $2.50

Beginning in 2016, dividends will increase at 4% annually.

Required Rate of Return (RRR) = 12%

Intrinsic value = Dividend received in 2013/ (1 + RRR) + Dividend received in 2014/ (1 + RRR) ^ 2 + Dividend received in 2015/ (1 + RRR) ^ 3 + Price in 2016 / (1 + RRR) ^ 3

Let's calculate each term of the formula above:

Dividend received in 2013 = $1.50

Dividend received in 2014 = $2.00 / (1 + 12%)^2 = $1.581

Dividend received in 2015 = $2.50 / (1 + 12%)^3 = $1.947

Price in 2016 = [($2.50 * (1 + 0.04)) / (12% - 4%)] / (1 + 12%)^3 = $21.83

Therefore, the intrinsic value of MBA Inc. shares is $21.83.

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Related Questions

What is the main advantage of primary data compared to secondary? Multiple choice question. reduces cost of data collection offers a guarantee of reliability specific to the problem being studied saves time in data collection

Answers

The main advantage of primary data in compared to secondary data is that its has a guarantee of reliability specific to the problem being studied.

What are primary data?

A primary data refers to data that are collected directly from interviews, surveys, experiment by the researchers.

Hence, a most important as aspect of a primary data is that the data is genuine and allows for used in secondary data like Journal, newspapers etc

Therefore, the Option B is correct.

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Which document determines the number of shares in a company?

a stock prospectus
an annual bill of rights
a corporate charter
an annual report

Answers

Answer:

C. a corporate charter

A Corporate Charter is document determines the number of shares in a company.

What is Corporate Charter?

Corporate charter is a legal document which is issued with the Secretary of State or registrar in order to establish a company as a corporation and contain every detailed information about company's share. The corporate charter contain information about governance, structure, objectives, operation, other information about the company and information about that total company shares and how much the company is willing to sell.

Therefore, A Corporate Charter is document determines the number of shares in a company

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$5,900+net+sales:+$88,000+net+purchases:+$86,000+the+company's+gross+profit+ratio+is+20%.+using+the+gross+profit+method,+the+cost+of+goods+sold+and+the+estimated+ending+inventory+value+would+be:_________

Answers

Using the gross profit method, the cost of goods sold is $4720 and the estimated ending inventory value is $40,280.

How to solve

Cost of/ goods sold = (1 - gross profit ratio) * net sales = (1 - 0.2) * $5900 = $4720

Estimated ending inventory value = cost of goods available for sale - cost of goods sold = ($5900 + $86000) - $4720 = $40,280

The gross profit ratio is 20%, so the company's gross profit is $5900 * 0.2 = $1180. The cost of goods sold is therefore $5900 - $1180 = $4720.

The cost of goods available for sale is $5900 + $86000 = $91900. The estimated ending inventory value is therefore $91900 - $4720 = $40,280.

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please help me answer these questions​

please help me answer these questions

Answers

Answer: See explanation

Explanation:

1. Inelastic demand occurs when a change in price doesn't really have an effect on the quantity of the goods demanded. Examples of products with inelastic demand are salt and prescription drugs.

2. Elasticity for demand helps in the determination of the prices of factors of production. It is also vital in knowing how price changes will affect the revenue of the firm.

3. Normal goods are the goods that when income increases, the demand for them increases as well e.g. household appliances

For inferior goods, when Income increases, their quantity demand reduces. These are common with extremely cheap products.

buiness proposal for cookies product

Answers

Business proposal for cookies product to transfer information across sessions on related websites or from one website to another without taxing a server machine with copious amounts of data storage.

Due to the constant need for cookies and their low cost of production, owning a cookie business might be successful. Furthermore, there are numerous ways to promote and sell cookies, so there is a lot of room for profit. The growing market for gluten-free or vegan cookies, entering new markets or distribution channels, or collaborating with other companies are all potential growth areas for a cookie company. Because whole grain flour, a nourishing source of protein, vitamins, fiber, and minerals that support a healthy metabolism, is an ingredient in cookies, eating them can help you feel more energised.

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Your social media promotion can either narrowly target 50,000 users with an estimated click rate of 10% or broadly
target 250,000 users with an estimated click rate of 1%. Which will get more clicks?

Answers

Answer:

Narrow targeting

Explanation:

1% of 250,000 is 2,500

10% of 50,000 is 5,000

A social media promotion can either narrowly target 50,000 users with an estimated click rate of 10% or broadly target 250,000 users with an estimated click rate of 1%. The narrowly target is the best way.

What is social media?

Social media is a term used to describe online communication. Social media systems enable users to have discussions, exchange information, and create content for the internet. Social media mostly used in the youth. The social media are to share the information quickly.

The social media promotion is the part of the marketing. The narrowly target is the specific niche of consumers is the target market on the right time to the right audience. The broadly target to the cover the large level of the audience. The narrowly target is the best option in the social media promotion.

The calculation are:

1% of 250,000 is 2,50010% of 50,000 is 5,000

As a result, the significance of the social media are the aforementioned.

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WILL GIVE BRAINLIEST

Select the correct answer from the drop-down menu.

Which type of college credit program does the statement describe?

In a(n) _______ program, students can get credit for their high school classes as long as they take specific courses that a college will accept as transfer credits at the college level.

options:

A. INTERNATIONAL BACCALAUREATE
B. ADVANCED PLACEMENT
C. DUAL CREDIT
D. ARTICULATED CREDIT​

Answers

Answer:

D.

Explanation:

Articulated credit let's you get credit from high school and transfer it to college.

Answer:

Its B

Explanation:

got it right

A 35-year-old client purchases a variable life insurance policy. Under current regulations, the maximum sales charge permitted over the life of the policy is A) 9% B) 8.5% per premium payment C) 9% per premium payment D) 8.5% of total premiums over the life of the plan

Answers

Answer: 9%

Explanation:

A variable life insurance policy is simply referred to as a contract between an individual and the insurance company. In the case of death to the individual, a certain amount would be paid to the family of the individual.

It should be noted that under current regulations, the maximum sales charge permitted over the life of the policy is 9% and this period should not be more than twenty years.

For important non-routine purchases, the person with formal authority to approve the supplier is the ________, often someone in a specific functional area.

Answers

For important non-routine purchases, the person with formal authority to approve the supplier is the decider, often someone in a specific functional area.

What is a service that isn't routine?

Non-Routine Administrations implies Administrations and upkeep that can't be performed by the staffing doled out to do Routine Administrations and different obligations of the administrator. Expertise or other resources that the Operator does not need to carry out its day-to-day responsibilities are needed for Non-Routine Services.

What's the purpose of functional areas?

The ability of each functional area to operate within its area of expertise is one of the reasons that business operations are divided into functional areas. This helps the company as a whole become more efficient and effective. A company's functional areas vary depending on its size and the nature of the market.

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what are two ways that a purely competitive firm can determine the level of output at which it will realize maximum profit or minimum losses?multiple select question.by comparing marginal revenue to marginal costsby comparing unit costs to total costsby comparing total revenue to total costsby comparing marginal costs to total costs

Answers

The correct methods are "by comparing marginal revenue to marginal costs" and "by comparing total revenue to total costs."

To determine the level of output at which a purely competitive firm can realize maximum profit or minimum losses, the two methods are:

1. By comparing marginal revenue to marginal costs: A firm should produce at the level where marginal revenue (MR) equals marginal cost (MC). This is the profit-maximizing level of output, as it ensures that the firm is producing in the most efficient manner.

Step-by-step explanation:
a. Calculate marginal revenue for each additional unit of output.
b. Calculate marginal cost for each additional unit of output.
c. Compare MR and MC, and find the output level where MR = MC.
d. At this output level, the firm maximizes its profit or minimizes its losses.

2. By comparing total revenue to total costs: A firm should produce at the level where the difference between total revenue (TR) and total costs (TC) is the largest. This is another way to determine the profit-maximizing level of output.

Step-by-step explanation:
a. Calculate total revenue for different output levels.
b. Calculate total costs for different output levels.
c. Compare TR and TC, and find the output level where the difference between TR and TC is the largest.
d. At this output level, the firm maximizes its profit or minimizes its losses.

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Which of the following is an account used to pay property taxes and homeowner's insurance? a. Deed b. Escrow c. Mortgage d. PMI e. Points

Answers

The account used to pay property taxes and homeowner's insurance is called an escrow account.

The funds in the escrow account are then used by the lender to pay these bills on the homeowner's behalf. This helps ensure that the homeowner is always up-to-date on these important payments and can avoid any penalties or legal issues related to unpaid taxes or insurance premiums.

An escrow account is the account used to pay property taxes and homeowner's insurance, ensuring that these expenses are paid on time and protecting both the homeowner and the lender.

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What does it mean when the irs acknowledges your return?.

Answers

Answer:

When you receive confirmation that the IRS accepted your return, it means that they have reviewed your return, and it has passed their initial inspection. They verify your personal information and other basic items, like if your dependents have already been claimed by someone else.

Explanation:

If sarah can earn 4 percent annually for the next 35 years, how much will she have to invest today?

Answers

Sarah will have to invest $506,830.94 today if the fund earns 4% annually.

Investments are defined as assets bought or invested in with the goal of increasing wealth and setting aside funds from salary or capital gains. The main goal of an investment is to generate additional revenue or to make money on the investment over a certain amount of time.

Any method for producing potential future revenue might be referred to as an investment. Buying bonds, equities, or real estate property are a few examples of this. A property that can be utilized to create things can also be bought and regarded as an investment.

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JohnBoy Industries has a cash balance of $54,000, accounts payable of $134,000, inventory of $184,000, accounts receivable of $219,000, notes payable of $129,000, and accrued wages and taxes of $41,500. How much net working capital does the firm need to fund?

Answers

Answer:Net working capital = $152,500

Explanation:

Net working capital = CA– CL

Where CA= Current Assets = Cash + Inventory + Accounts Receivable

and CL= Current Liabilities= Account payable + Notes payable + accrued wages and taxes

CA=$54, 000 + $184,000 + $ 219,000 =$457,000

Current liabilities = Account payable + Notes payable + accrued wages and taxes

CL = $134,000 + $129,000 + $41,500 = $304,500

Net working capital = Current assets – Current liabilities

Net working capital = $457,000 – $304,500=  $152,500

Net working capital = $152,500

two farmers agree that pigs are worth $\$300$ and that goats are worth $\$210$. when one farmer owes the other money, he pays the debt in pigs or goats, with ``change'' received in the form of goats or pigs as necessary. (for example, a $\$390$ debt could be paid with two pigs, with one goat received in change.) what is the amount of the smallest positive debt that can be resolved in this way?

Answers

Pigs are valued at $300, and goats are valued at $210, according to two farmers. A farmer will trade pigs or goats for money owed to him by another farmer.

Do you trust farmers?

The cultivation of living things for food or raw resources is the work of an agriculturalist. Those that cultivate various field crops, orchards, vineyards, poultry, or other livestock are often referred to by this moniker. In addition to working as a labourer on property that is owned by others, a farmer may also be the land's owner. Despite differences in degrees and ranks, the level of faith in farmers can be shown in every survey. Another piece of proof for this was provided by a recent survey conducted by the American Farm Bureau, which showed that 88% of Americans have faith in farmers.

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You are told that if you invest $11,000 per year for 23 years( all payments made at the end of each year) you will have accumulated $366,000 at the end of the period What annual rate of return is the investment offering.

Answers

Answer:

3.2%

Explanation:

this is an ordinary annuity:

future value of an ordinary annuity = annual payment x future value annuity factor

$366,000 = $11,000 x future value annuity factor

future value annuity factor = $366,000 / $11,000 = 33.2727

you can solve this in two ways:

the first is with a lot of math work in order to solve the following equation

33.2727 = [(1 + i)²³ - 1] / i

or

you can use an annuity calculator (available online) which will yield 3.2%

Which of the following is a common way to describe a product that is being offered for sale? (Select the best answer.)
Which of the following is a common way to describe a product that is being offered for sale? (Select the best answer.)

In business
On exchange
On the market
In the market

Answers

Answer:

On the market

Explanation:

On the market is the phrase that refers to items that have been offered to the market for sale. When an item has been labeled 'on the market,' it means the item is available for sale. Buyers are invited or welcomed to buy.

In the market is when a buyer is shopping for an item to buy. In the market for a car mean they are looking for a car to buy.

What is the objective of the Joint Project Planning Session?
Question 5 options:
Produce a detailed Project Plan
Produce Conditions of Satisfaction
Produce a Project Overview Statement
Produce Stakeholder Agreements
Which of the following is NOT a situation requiring team operating rules?
Question 16 options:
Conflict resolution
Problem solving
Project Training
Decision making
Mr. John Smith has been appointed as manager of large installation project. In his new role, Mr. Smith is responsible for managing potentially 300 stakeholders. Which of the following would be the BEST course of action for him to take?
Question 25 options:
Gather the needs
Find an effective way to gather the needs of all stakeholders
Contact the CEO and ask which stakeholders are most important
Eliminate some stakeholders

Answers

Produce a Project Overview Statement. Project Training. Find an effective way to gather the needs of all stakeholders.

The objective of the Joint Project Planning Session is to produce a Project training. This statement provides a high-level overview of the project, including its goals, scope, deliverables, and key stakeholders. It serves as a concise summary that helps align the project team and stakeholders on the project's direction and objectives. Project Training is not a situation that requires team operating rules. Team operating rules are typically established to guide and regulate team activities in areas such as conflict resolution, problem solving, and decision making. Project training, on the other hand, focuses on equipping team members with the necessary skills and knowledge to effectively perform their roles and contribute to the project's success.

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How often are financial statements
released?

Answers

Answer:

Once per year

Explanation:

The law requires businesses to prepare their financial statements and reports every year or twelve months. A business's financial period should not exceed 12 months. All firms must prepare their financial reports to the relevant stakeholders at the end of every financial period.

Shareholders, investors, business partners, and the government are some of the users of the company's financial reports. The law expects the business to present their financial statements at the end of every period. However, companies may prepare reports in between the financial period for their internal use.

________ relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used.
Velocity
customer mind-set
dashboard

Answers

Velocity relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used.

It is important to consider the customer mind-set when creating a dashboard to display this data effectively. It is one of the three main characteristics of big data, along with volume and variety. Velocity refers to the speed at which data is generated, collected, processed, and analyzed, and it is particularly important in real-time data applications where insights and actions need to be derived quickly from streaming data.

High velocity data can come from sources such as social media, web clickstreams, mobile devices, and sensors, and it requires fast and scalable data processing and analytics technologies to be harnessed effectively.

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define inequality and poverty

Answers

Answer:

Inequality is the situation whereby there is a clear difference in access to certain economic and social resources by one sector of the population compared to others. Thus, the abysmal differences in income, levels of education, health or housing between the different social classes show this type of inequality situation.

On the other hand, poverty is a more concrete concept, in which one or several individuals have a situation of scarcity of elementary economic resources, which directly affects their quality of life.

wilson electric reports income tax expense of $151,000. income tax payable at the beginning and end of the year are $20,200 and $25,300, respectively. what is the cash paid for income taxes during the year?

Answers

according to the question $104,700 is the cash paid for income taxes during the year.

Why is there an income tax?

An individual must pay the individual income tax, sometimes known as the personal income tax, on all of their annual income, including wages, wages, dividends, interests, and other types of income. The state where the income is derived often levies the tax.

How is income tax such a big deal?

Taxes are used by the government to pay for a range of social welfare, including measures to create jobs. The government is responsible for covering the administrative expenses for the different departments' thousands of employees.

Briefing:

cash paid = income tax expense - (income tax payable at the beginning + end of the year)

= $151,000 - ($20,200 + $25,300)

= $105,500

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some examples of grievances might include all except which of the following

A- one employee was promoted over another even though he had seniority

B-an employee doesn't have the tools needed to perform his or her job as outlined in the contract

C-an employee was determined all the determination violated the rules of the contract

D- an employee wants additional days off above the contract number due to family emergency​

Answers

Answer:

D. An employee wants additional days off above the contract number due to family emergency.

You will receive $500 tomorrow. You will receive an additional nine cash flows growing at the rate of inflation of 2 percent per year. The nominal interest rate is 10 percent. a. Find the value of the stream of cash flows. Make sure to show your work. b. What is the real value of each cash flow received? Make sure to show your work. c. Find the value of the stream of cash flows, based on real values. Make sure to show your work. d. What do you observe? Explain.

Answers

Answer:

please find the solution which is defined as follows:

Explanation:

please find the table in the attached file:

In point A, The Cashflow value = 5474.86 (premised on the description of cash flows). In point B, the above table the PV of cash flow represents the real cost of its earned cash flow. In point C, its actual value of the cash flow source is 3643.921. In point D, The observation would be that the value of money year after year is depleting and is worth far more as inflation is weak.
You will receive $500 tomorrow. You will receive an additional nine cash flows growing at the rate of

1. Which is an example of fiscal policy?

A. preventing unions from going on strike

B. raising taxes in order to cover a budge deficit

C. Restricting the amount of money that banks can lend

D. increasing the level of minimum wage


2. Which is an example of fiscal policy?

A. decreasing the interest rates on loans charged to car companies

B. deploying troops to help citizens cope with natural disaster

C. going into debt to buy a large number of vehicles

D. limiting the number of foreign cars that can be sold in the United Stats

Answers

The correct answer is a

Answer:

A. decreasing the interest rates on loans charged to car companies

Joni, a college student, has $400 worth of expenses monthly. How much should she save be financially secure?​

Answers

Answer:

200 i think sorry if im wrong

Explanation:

_____ enables employees who lose their jobs or have their hours reduced to a level at which they are no longer eligible to receive medical, dental or optical benefits have the right to pay to continue receiving benefits for themselves and their dependents under the employer's policy.

Answers

Answer:

employment and labor law

true or false when a provider has market dominance, and hence can set its own prices (within reason), it is called a price taker.

Answers

The statement "when a provider has market dominance, and hence can set its own prices (within reason), it is called a price taker" is false because that is called a price setter, not a price taker.

What is a price setter?

A price setter is a business or industry that has control over the market price of goods or services. This is achieved through the use of monopolistic competition, oligopoly, or a monopoly. In an oligopoly, for example, the top four firms account for 80% of the market. These businesses have considerable power over the market since their pricing and output strategies influence market conditions. The company can set its prices above those of its competitors due to its monopoly position. This will be to maximize profits by charging the highest price that consumers are willing to pay.

What is a price taker?

A price taker, on the other hand, is a firm or industry that accepts the market price determined by supply and demand forces. Small businesses and startups are more likely to be price takers since they lack market power to set prices. The market price is the going rate for a product or service. Businesses that do not have a monopoly or oligopoly position are price takers, and they must accept the market price. They have no influence over the market price since their output is minor, and they must accept the market price to be competitive.

What is market dominance?

Market dominance is when a company or group of firms controls a significant portion of the market. A company that holds a significant portion of the market may have an unfair advantage over its competitors, which can lead to a monopolistic or oligopolistic market. When a company has market power, it can charge higher prices or reduce product quality without fear of losing customers. Governments frequently take measures to promote competition and prevent businesses from dominating the market, to protect consumers from paying excessive prices.

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On the statement of cash flows, the investing activities section would include a.cash paid for retirement of bonds payable b.cash received from the issuance of capital stock c.cash paid for dividends d.cash received from the sale of investments

Answers

C I think is the right answer

Answer question below with 150 words:
How do the income statement and the balance sheet help management make good decisions?

Answers

Answer:

The income statement and the balance sheet are two essential financial statements that help management make informed and wise decisions. The income statement shows the performance of a company over a certain period of time by providing information on revenue, expenses, and profits. This provides management with an understanding of how their business is performing, as well as any areas that need improvement. It also helps them to measure their successes and failures, gain insights into future opportunities, and decide on how to allocate their resources.

The balance sheet, on the other hand, provides a snapshot of the company's financial position at a given moment. It shows the total assets, liabilities, and equity owned by the company, allowing management to spot any upcoming cash flow problems and devise strategies to address them. It also helps management to better understand where their assets are invested, as well as their current financial assets and liabilities.

Overall, both the income statement and the balance sheet are important tools for management when making decisions. They offer an in-depth look at the financial position of a business and enable management to effectively manage their resources and plan for the future.

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what is the maximum gauge pressure of waters that can measured using piezometer tube 2m high? Review: RI.10.3 - How does the author connect the ideas concerning citizen science projects and conservation? * 50 points by comparing the benefits of citizen science projects with those of conservation by showing how citizen science projects further the goals of conservation by arguing that citizen science projects focus more on community outreach than conservation by describing how little participants in citizen science projects know about conservation The temperature distribution (x, t) along an insulated metal rod of length L is described by the differential equation a2e 1 ae ar2 D at (0 0), where D#0 is a constant. The rod is held at a fixed temperature of 0C at one end and is insulated at the other end, which gives rise to the boundary conditions de/ax = 0 when r = 0 for t > 0 together with 8 = 0 when I = L for t > 0. The initial temperature distribution in the rod is given by 773 0(3,0) = 0.3cos (T (0 0. In this case the general solution of equation (*) is X(x) = A cos(kx) + B sin(kx). Find the non-trivial solutions of equation () that satisfy the boundary conditions, stating clearly what values k is allowed to take. (d) Show that the function f(x, t) = exp(-Dkt) cos(kx), satisfies the given partial differential equation for any constant k. (e) Given that the general solution of the partial differential equation and boundary conditions may be expressed as D(2n-1) 0(x, t) = Cnexp (2n-1)72 cos 4L2 2L 1 find the particular solution that satisfies the given initial temperature distribution the variable overhead efficiency variance measures the change in variable overhead consumption due to efficient or inefficient use of the activity driver used to assign overhead costs to products. t/f the nurse is teaching the parents of a child with sickle cell anemia about ways to prevent sickling. which would the nurse explain as the primary cause of sickling? hypoxia hemodilution .A constant-coefficient second-order partial differential equation of the form au/x^2+ b u/xy +c ^2u/y =0 can be classified using the discriminant D = b - 4ac. In particular, the equation is called hyperbolic if D > 0, elliptic if D If the data analyst hypothesizes that grocery sales are lower on Sunday than on other days, the null hypothesis would likely state that: A woman of mass 50 kg is swimming with a velocity of 1.6 m/s. If she stops stroking and glides to a stop in the water, what is the impulse of the force that stops her? When inflation is blank the Fed aims to slow the economy brainly? Fill in the missing comparative terms to complete each sentence.2 questions**only answer if u actually know what ur doing dont just translate it please its not accurate** pls pls pls pls help me Which change is an environmental effect of building dams? the ordinary and commonplace events of life are classified as select one: a. sacred. b. profane. c. cult-like. d. ritualistic. Select the correct answer from each drop-down menu. The slope of the line in the graph is . The y-intercept is . The equation of the line is y = x . Why does an 'external social cost' lead to inefficient overproduction? (7 marks) (b) The table below provides information about the marginal social cost and marginal social benefit of street Which statement is true?A. 5x and 5 are like terms.B. 5 and x are like terms.C. 5x and x are like terms.D. 5x and 5y are like terms. Find the area of this triangle, round to the nearest 10th (Long question, be sure to scroll all the way to the bottom) A population of butterflies lives in a meadow, surrounded by forest. We want to investigate the dynamics of the population. Over the course of a season, 38% of the butterflies that were there at the beginning die. During each season, 24 new butterflies per square kilometer arrive from other meadows. a) The number of butterflies per square kilometer can be describe by a DTDS of the form 34+1 (++), where ay is the number of butterflies per square kilometer at the beginning of season t. Find the updating function Which statement best describes the atoms of the gas neon based on a report by scientists at scripps who studied marine fossil assemblages in layers deposited over the last 85 million years, geologically, the "modern ocean" ecosystem is distinct from the