KNX Corp commits to pay a dividend of $5.20 in year 1, $6.0 in year 2, and $7.5 in year 3, a share. After that, the annual dividend will be $11.00 per share indefinitely.
What is the value of KNX Corp today assuming investors require a return of 9.8 percent?
A.
$114.7
B.
$82.1
C.
$100.2
D.
$66.70

Answers

Answer 1

the value of KNX Corp today, assuming investors require a return of 9.8 percent, is $151.99. The closest answer choice to this value is (A) $114.7, which is incorrect.

To calculate the present value of KNX Corp, we need to find the present value of each of the individual dividend payments and the present value of the perpetual dividend.

First, let's calculate the present value of the first three years of dividends using the formula for the present value of a growing annuity:

PV = C / (r - g) * (1 - (1 + g / (1 + r))(-n))

where PV is the present value, C is the cash flow in year 1, r is the required rate of return, g is the growth rate, and n is the number of periods.

Using this formula, we get:

PV = 5.20 / (1 + 0.098 - 0.03) * (1 - (1 + 0.03 / (1 + 0.098))(-3)) + 6.00 / (1 + 0.098 - 0.05) * (1 - (1 + 0.05 / (1 + 0.098))(-2)) + 7.50 / (1 + 0.098 - 0.06) * (1 - (1 + 0.06 / (1 + 0.098))(-1))

PV = 16.42 + 16.09 + 7.24

PV = 39.75

Next, let's calculate the present value of the perpetual dividend using the formula for the present value of a perpetuity:

PV = C / r

where PV is the present value, C is the cash flow, and r is the required rate of return.

Using this formula, we get:

PV = 11.00 / 0.098

PV = 112.24

Finally, we can add the present value of the first three years of dividends to the present value of the perpetual dividend to get the total present value:

Total PV = 39.75 + 112.24

Total PV = 151.99

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Related Questions

Click this link to view O*NET's Tasks section for Actors.
Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to
O*NET, what are common tasks performed by Actors? Check all that apply.
creating artwork for use in stage sets
collaborating with other actors
working closely with directors, other actors, and playwrights to find the interpretation suited to the role
studying and rehearsing roles from scripts
learning about characters in scripts and their relationships to each other
teaching college classes and training other people how to become actors

Answers

Answer: B C D E

Explanation:

Did the assignment

To find the interpretation suited to the role, studying and rehearsing roles from scripts, learning about characters in scripts and their relationships to each other and teaching college classes and training other people how to become actors are common tasks performed by Actors. Hence, options B, C, D and E are correct.

Who is a director of a movie?

The directors are the movie's creative leaders. They uphold the artistic vision throughout pre-production and final editing. They are employed by the executive producer or producer, who is ultimately in control of a production.

A film director's responsibilities include reading and editing scripts, overseeing the cast and crew, and putting the final product together. The actors and other crew members will work with you to ensure that the movie ultimately reflects the aesthetic vision for the finished result.

Thus, options B, C, D and E are correct.

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Explain incentives and opportunity cost. Also give an example of both.

PLEASE ANWSER THIS AS A QUESTION YOU HAVE BEEN GIVING SO I CAN COPY AND PASTE PLEASE.

Answers

Answer:

Incentives are the rewards or punishments that shape people's choices. Incentives can be either monetary or non-monetary. When opportunity costs change, incentives change, and people's choices and behavior change. Changes in incentives cause people to change their behavior in predictable ways.

Explanation:

I think that is correct

Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2

Answers

Answer:

$67.50 per hour

Explanation:

Setup Cost = $312,500

Transportation Cost = $10,000

Direct Labor cost $25,500

Modification of machine cost $12,000

Insurance of Factory Premises $28,000

Raw material Cost $118,250

Machine hours = 7,500 hours

labor hours = 3,500  hours

Total manufacturing Overheads = $506,250 / 7,500 = $67.5 per hours

DO you like Anne with an E?​

Answers

Answer:

meh

Explanation:

it's okay. I kind of don't like how they stayed from the book but all the scenes were shot beautifully, and the actors did great. I only watched a few so I cant give more than a "meh" but I do like what I'm seeing so far

The user growth rate of a social media platform decreased by 15% per month. On January 1, the platform had 20 million users. If growth decreases at 15% each month, how many will it have by year end?

Answers

Answer:

2.844835 million current users

Explanation:

20 million x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85

Here is selected financial statement data regarding a company's property, plant, and equipment. Balance Sheet: Dec. 31, 2018 Dec. 31, 2017 Property, plant, and equipment $ 563,000 $ 294,000 Accumulated depreciation 286,000 237,000 Income Statement: 2018 Depreciation expense $ 105,000 Gain on sale of property, plant, and equipment 26,000 During the year, PPE with a book value of $23,000 were sold. In the statement of cash flows, the investing activities section should show a cash disbursement for "purchases of property, plant, and equipment" for $ _________.

Answers

Answer:

$292,000

Explanation:

price of old equipment sold = $26,000 + $23,000 = $49,000 (cash inflow)

new equipment purchased = $563,000 - $294,000 + $23,000 = $292,000 (cash outflow)

cash flow from investing activities:

cash disbursed for purchasing new equipment = ($292,000)

cash received from sale of old equipment = $49,000

net cash flow from investing activities = ($243,000)

5. Describe how Chris used networking to his advantage in getting an internship
Witter and signing new clients.

Answers

Answer:

is there more information for this question?

Pete and Shirley are filing a joint return. They have two dependent children. What is the total amount of their exemptions for tax year 2019? A. $0 B. $4,200 C. $8,400 D. $16,800

Answers

Answer:

A. $0

Explanation:

The Tax Cuts and Jobs Act eliminated personal exemptions starting 2018. It also increased standard deductions though. For example, the standard deduction for married filing jointly for 2019 was $24,400. This is a significant increase if you consider that the standard deduction for married filing jointly in 2017 was $12,700.

Theta Inc. uses normal costing and applies overhead based on direct material costs. The predetermined overhead rate for the current year is 250% of direct material costs. During the year, $3,500,000 of direct material costs and $4,000,000 of direct labor costs were incurred. Theta's applied overhead is:

a. $9,375,000.

b. $1,600,000.

c. $8,750,000.

d. $1,400,000.

Answers

Answer:

a. $9,375,000.

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Critical reading is a
a Theory
b. Process
C. Summarization strategy
d. None of these
Please select the best answer from the choices provided
A
В
C
D

Answers

Answer:C

Explanation:

Answer:

The correct answer for this question is B

Indicate the point where a monopoly will set its price.

Answers

Answer:

A monopoly will set its price at the point where marginal cost and marginal revenue intersects or meet (MC = MR).

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public power company that serves as the only power utility (electricity) provider to the public.

Generally, a monopoly will set its price at the point where marginal cost and marginal revenue intersects or meet (MC = MR). This is simply because a monopoly would derive the maximum profit at the point where MC = MR.

Answer:

The dot where green and red meet.

Explanation:

HELP ME PLEASE!!!
when is it usually best to choose a variable rate home mortgage?
A. if you plan to stay there many years.
B. if you plan to stay there a short time before moving again.
C. if you plan to rent it out.
D. if you plan to have a large family.

Answers

Answer:

A...............maybe D

Which of the following does not fall into the field of marketing?
-restaurant management
-education
-e-commerce
-professional sales

Answers

Answer:

professional sales

Explanation:

sales

Which economic system is based on an idea of equality of result; that regardless of how well off somebody starts, all
should be guaranteed an equal success?
O A. Traditional
B. Command
OC. Mixed
D. Market

Answers

B. Command

What your describing sounds a lot like communism which would be found under a command economic system

Answer:

D.Market

Explanation:

A market economy conforms to formal equality of opportunity only if jobs offered by business firms are publicized in advance, so that anyone who might want to apply has a reasonable opportunity to do so.

Burning of candle is which change?(chemical change or physical change)​

Answers

Burning a candle is a physical change
Hope that helped

Answer:

physical as it is getting smaller, but I would also say chemical as it's changing into melted wax? more of a physical change for me. hope this gelps

Which research tool is best suited to gathering qualitative market data?

A. Census statistics
B. In-depth interviews
C. Business records
D. Surveys

Answers

In-depth interviews is best suited to gathering qualitative market data.

What is market data?

Every business's success has been largely attributed to its use of market research techniques. Knowing the ins and outs of your target market is more important than ever in a world where competition seems to be endless.

Companies that benchmark can see 69% quicker growth and 45% higher productivity than those that don't, according to a PwC study.

Organizations have been able to learn not only some of the largest industry revelations, but also the smallest facts that most people miss, thanks to market research. Market research is crucial because it enables businesses to interpret information and make defensible judgments.

Therefore,  In-depth interviews is best suited to gathering qualitative market data.

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Answer:in-depth interviews

Explanation:

I just Took the quiz.

review of the nigerian economy​

Answers

Answer:

amazing

Explanation:


Nigeria's economic freedom score is 57.2, making its economy the 116th freest in the 2020 Index. Its overall score has decreased by 0.1 point, reflecting a decline in the fiscal health score.

On 3/1/X1 Landlord Co. received a $36,000 cash payment from Renter Co. to pay for a total of 17 months, starting in the current month. How much revenue should Landlord Co. recognize in the year ending 12/31/X1? Round your answer to the nearest penny.

Answers

Answer: $21177

Explanation:

First and foremost, we should note that since the revenue that Landlord Co. wants to recognize in the year ending 12/31/X1 will be for a period of 10 months that is, from 1st of March to 31st of December.

Therefore, the revenue that Landlord Co. should recognize in the year ending 12/31/X1 will be:

= $36000 × 10/17

= $21176.471

= $21177

A weekly report for new agents at a vacation sales company is shown in the histogram. A histogram titled Vacation Packages has number of packages sold on the x-axis and number of salespersons on the y-axis. 9 sold 1 to 2 packages; 7 sold 3 to 4; 4 sold 5 to 6; 3 sold 7 to 8; 2 sold 9 to 10; 1 sold 11 to 12; 2 sold 13 to 14; 3 sold 15 to 16. How many of the new agents sold more than 10 vacation packages?

Answers

Answer:

6 salespersons

Explanation:

A histogram shows the graphical representation of the distribution of numerical data using bars of different lengths.

From the histogram:

The number of salespersons who sold 11 - 12 packages = 1

The number of salespersons who sold 13 - 14 packages = 2

The number of salespersons who sold 15 - 16 packages = 3

Therefore the new agents who sold more than 10 vacation packages = 1 + 2 + 3 = 6 salespersons

Answer:its 6

Explanation:i took the quiz and i know the answer

Besides individuals, who else pays taxes in our country?

Answers

Answer:

Aliens?

Explanation:

most stock exchanges today use electronic trading

Answers

True

(Not sure what was the question about but I’m guessing it’s a true/false?)

hope this helps :)

3. Why are people who are unemployed but not looking for work not included in
the unemployment figures? (Hint: think of teenagers)
Need help due TODAY

Answers

Answer:

Because they don't keep track on it.

Explanation:

Basically they are just included in it because they don't keep track of it. Hope that helps!

Which of the following tips can help you avoid electrical
shock from a computer? (Select three answers.)
Unplug the computer before performing maintenance.
| Keep liquids away from the computer.
Open up the computer while it is turned on to see
what's wrong.
D Use only the keyboard and not the mouse when
performing maintenance.
Make sure the computer doesn't have worn out wiring.
Wash the inside of the computer with water to keep it clean.

Answers

Answers:


1) Unplug the computer before preforming maintenance.

2) Keep liquids away from computer.

3) Make sure the computer doesn’t have a worn out wiring.


I hope this helped :)

Question 2 (1 point)
Kelsi works in a toy manufacturing company assembling small dolls. Her job falls into
the Maintenance, Installation & Repair pathway of the Manufacturing career cluster.

1:) True

2:) False

Answers

True




I guess don’t be mad if I’m wrong

"tractor is a modern tool of agriculture".justify this statement with suitable example​

Answers

Answer:

Tractors are the king among different farm equipment. They are the main workhorse of any modern farm. They provide the power and traction necessary to mechanize agricultural tasks. ... There are different types of tractors in the market, varying in size and capacity.

Explanation:

What are three ways to discover how to involved in your chosen career field

Answers

Answer:

Research industry information. ...

Find out about professional associations. ...

Research career options using LinkedIn.

What is the biggest business in the world right now and why.

Answers

Answer:

Apple

Explanation:

It is worth the most money. It is worth 2 trillion dollars.

Answer:

anime

Explanation:

an anime? jus cu.z i luv anime

Which of the following explains how revenue is determined?

A. The total amount of money brought in by sales.

B. Gross domestic product is calculated.

C. Costs are subtracted from revenues.

D. The maximum level of benefits is figured.​

Edit: Its not C

Answers

Answer:

A. The total amount of money brought in by sales.

Understanding the legal ramifications what types of policies should organizations implement when using social media tools for recruitment

Answers

Answer:

Social media is a vital tool for online recruitment in the large MNCs now-a-days.

Explanation:

In the recent, there is a trend of recruiting the new professionals through various online platforms and other social media tools.

With social media many legal consideration comes into account. The organizations while handling social media tools for recruitment has to look on various important points while posting their advertisement and collecting the data of the candidates online. There are severe legal ramifications on using social media in a wrong way, so organization have to be ethical while using them.

Firstly, they should respect the privacy of the social media communities.Professionalism and rules of ethics should be applied.They should respect the copyright laws.

How can the government be both a producer and a consumer in respect to its relationship with business

Answers

Answer:

they gonna tinda and be kind to the coatumets

Answer:

they are gonna tinda and be nice to the caotmautes

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The earliest Greek writing did not even have spaces between words.Here is your goal for this assignment:Use sentence and mechanics skills in composition!For this project, you are to put your imagination to work. Picture a society (perhaps imagine yourself living in it) with no punctuation or capitalization rules. Brainstorm all the effects this could have. Perhaps you might foresee confusing or humorous situations that could arise.Write an essay of at least 400 words illustrating your understanding of the importance of standards for capital letter and punctuation use. You may communicate this understanding through expository or narrative writing, and may be as serious or humorous as you wish, as long as you convey the idea of the importance of these language mechanics.Remember to write an introductory paragraph and a good conclusion. Write sentences that require different kinds of punctuation. 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Find the total number of miles. this set designed by noguchi included an abstraction of a bed.a. true b. false (2,-1) y=1/4x+8 in slope-intercept form Is it crucial that the process of mitosis? AP WRITING HISTORICALLYSAQRead the following question carefully and write a short response. Use complete sentences.Using the following excerpts, answer (a), (b), and (c).Source: Chandra Manning, The Fight Against Slavery, 2007"Enlisted Union soldiers came to the conclusion that winning the war would require thedestruction of slavery partly because soldiers' personal observations of the South led many todecide that slavery blighted everything it touched. Yet more influential than Union soldier's preexisting notions, or even their firsthand observations of the South, were their interactions with actual slaves, which led many to view slavery as a dehumanizing and evil institution that corroded the moral virtue necessary for a population to govern itself.Hostility to slavery did not necessarily mean support for racial equality. In fact, white Unionsoldiers strove mightily to keep the issues of slavery and black rights separate. [Still], contact with slaves and southern society convinced many Union troops that the immoral and blighting institution of slavery was antithetical to republican government, and that any republican government that tried to accommodate slavery was doomed to eventual failure. [C]lear demands for the destruction of slavery plainly emerged among enlisted Union soldiers, especially those stationed in the slave states who were witnessing slavery with their own eyes for the first time. Even some border state Union soldiers joined the clamor, either because they had witnessed for years the violence that slavery could engender or out of shock and anger that slaveholders in their home states valued the peculiar institution over the Union. Slaves themselves did the most to force emancipation onto the Union agenda,. [primarily] by winning over enlisted Union soldiers, who, in the first year of the war, became the first major group after black Americans and abolitionists to call for an end to slaverySource: Gary Gallagher, The Fight to Save the Union, 2011"The loyal American citizenry fought a war for the Union that also killed slavery. Unionalways remained the paramount goal, a fact clearly expressed by Abraham Lincoln inspeeches and other statements designed to garner the widest popular support for the wareffort... 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