Answer:
E. The Small business Administration
Explanation:
The small business administration is an agency that supports small business and entrepreneurs with setting up of their business. The small business administration helps with the provision of counseling to aid individuals trying to start and grow businesses.
Therefore Angela should meet the Small business Administration for financial and managerial assistance.
Answer:
option (d) $18.24
Explanation:
Data provided in the question:
Dividend paid last year = $1.2
Dividend growth rate for 3 years, g = 10%
After 3 years Dividend growth rate, g' = 4%
Required return, r = 12%
Now,
Present vale factor, PVF = 
Year Dividend PVF @12% Dividend × PVF
1 1.2(1+.10)= 1.32 0.89286 1.1786
2 1.32(1+.10)= 1.452 0.79719 1.1575
3 1.452(1+.10)= 1.5972 0.71178 1.1369
3(Terminal value) 20.7636 0.71178 14.7791
=====================================================
Current share price ∑(Dividend × PVF
) ≈ $18.24
Note:
Terminal value at year 3 = 
= 
= $20.7636
Hence,
The correct answer is option (d) $18.24
Answer:
The price per share of this stock is $13.20
Explanation:
Using the dividend discount model, we can calculate the price per share today of this stock. The DDM values a stock based on the present value of the expected future dividends of the stock discounted using the required rate of return on the stock. The price o=per share today for this stock is,
P0 = 0.18 * (1+1) / (1+0.1024) + 0.18 * (1+1)^2 / (1+0.1024)^2 +
0.18 * (1+1)^3 / (1+0.1024)^3 + 1.25 / (1+0.1024)^4 + 1.25 / (1+0.1024)^5 +
(1.60 / 0.1024) / (1+0.1024)^5
P0 = $13.20
Answer:
d. defense tactics make the costs of a takeover lower.
Explanation:
There's a take over attempt when a company is faced with a hostile takeover attempt.
Defense can be either pre offer takeover or post offer takeover.
In pre offer takeover defense, companies put mechanisms in place to discourage takeover attempts.
Pre takeover defense mechanisms include:
1. Golden parachute: this benefits the managers of a company. It is an agreement where managers are compensated lucratively if they leave the company being targeted for a takeover when there's a change in corporate control.
2. Fair price amendments: this sets a bidding value floor for a target company. This makes the company more expensive
3. Staggered board : this is when its impossible to change all the members of boards of a company.
4. Poison pill
5. Poison put
Post take over defense mechanism usually are put in place after a takeover attempt. They include:
1. White knight defesne : The takeover firm invites another company to purchase it in place of the firm planning an hostile takeover. This can lead to bidding and counter bidding by the third firm and the firm planning the hostile take over. This can eventually leads to winners curse. This usually increases the cost of takeovers
2. Litigation
Not all take over defense tactics are usually effective. Generally, preoffer take over tactics are usually recommended.
