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nasty-shy [4]
4 years ago
11

How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends incre

ase by 3 percent annually, and you require a rate of return of 15 percent?
a.8.69%
b.8.54%
c.9.04%
d.9.22%
e.9.45%
Business
1 answer:
anastassius [24]4 years ago
3 0

Answer:

b.8.54%

Explanation:

Use Dividend Growth model to calculate the rate

Dividend =D1 = $1.03

Rate of return = k = 15%

Growth rate = g = 3%

Formula

Cost of Capital = D1 / k-g

Cost of Capital = 1.03 / 15%-3%

Cost of Capital = 1.03 / 12%

Cost of Capital = 8.58%

The closest answer is 8.54%, as no option matches with the answer.

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Brilliant_brown [7]

<u>Answer:</u>

<em>a. Initiating structure leadership behaviour</em>

<em>b. The leader-member exchange model</em>

Explanation:

Maximizing output and completing tasks is one of the main focus of initiating structure leadership behaviour because it analyses how a leader delegates tasks to subordinates while also been considerate to them.

In the leader-member exchange model two words that come to mind is trust and respect .

This leadership model explains that the way leaders (managers) treat their subordinates would affect how they behave at work.

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3 years ago
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Natali [406]
Until the mid-1700s, the 13 colonies often had diverse histories and economies, which provided <span>little incentive for them to join together to meet shared goals.
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3 years ago
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iVinArrow [24]

Answer

$400

Step by step explanation

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Commission = 1% = 1/100 = 0.01

Step 2: Find the commission for $40,000

Commission earned for the month = 0.01 *$40000

= $400

I hope you will understand this.

Thank you.

3 0
4 years ago
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