Answer:
A. $113.95
Explanation:
Vansel's expect that the EPS will grow by 2% annually, the earnings per share in 3 years are forecast to be:
Earnings in 3 years = $11×(1+2%)³ = $11.67
The forecasted earnings per share can be multiplied by the PE ratio of the firm’s industry to forecast the future stock price. The average PE ratio of all other firms in Vansel industry is 12, the stock price in three years can be forecast as follows:
Stock price in three years = (Earnings in three years)×(PE ratio of industry) = $11.67×12 = $140.08
This forecasted stock price can be used along with expected dividends and the investor’s required rate of return to value the stock today. Vansel pay a dividend of $3.5 per share over the next three years and the investor’s required rate of return (Re)is 10%, then the present value of expected cash flows to be received by the investor is:
PV = Dividend₁/(1+Re)¹ + Dividend₂/(1+Re)² + Dividend₃/(1+Re)³ +Stock price in three years/(1+Re)³ = $3.5/(1+10%) + $3.5/(1+10%)² + $3.5/(1+10%)³ + $140.08/(1+10%)³ = $113.95
Explanation:
Innovation is the introduction of inventing or producing new things.
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The answer to this question is <span>determinant attributes
</span><span>determinant attributes refers to the attribute that become the main reason on why consumers choose to buy a certain programs without considering things such as the face of advertisers model, or company's side cause. This usually only focus on the price of the products and the function of the products
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Answer:
D. No, because Rachel's family farm does not employ outside workers.
Explanation:
The Occupational Safety and Health Act of 1970 in its most rudimentary form is a law in the United States meant to govern the occupational health and safety of federal government employees and the private sector as well.
Option D is correct because the law does not cover immediate family members on farms that do not employ outside employees.
Answer:
The correct option is B:
For Trenton Corporation it is beneficial to reinvest the funds into corporation's core restaurant business
Explanation:
Trenton Corporation , who has sale-leaseback of 200 restaurants for $1 billion and the net proceeds of all payments is $620 m, the better option for putting the remaining funds for the best long-term return for shareholders would be :
B) reinvest the funds into Trenton's core restaurant business
<u>Reason:</u>
This is because the reinvesting back of the fund to the restaurants business will be an investment in the known core business field and it will add many more appreciation and value to the shareholder's fund.
Paying dividends to shareholder's and taking loan or issue new share capital will reduce the share value of the existing shareholders.