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My name is Ann [436]
3 years ago
8

Dragon express inc. just paid a $1.57 dividend and investors expect that dividend to grow by 5% each year forever. if the requir

ed return on the stock investment is 14%, what should be the price of the stock today.
a. $11.21
b. $17.44
c. $25.37
d. $18.32
Business
1 answer:
Elena-2011 [213]3 years ago
6 0

To solve this problem, we will use a valuation method named income valuation includes discounting of the profits the stock will carry to the stockholder in the probable future, and a final value on disposal.

Solution:

1.57 (1.05) / (.14 - .05)

= 18.32. the answer is letter d.

<span> </span>

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Consider the telecommunications, networking, and wireless technologies you use today as a consumer and student. Does your comfor
kati45 [8]

Answer:

Yes, people´s comfort level with changes in technology in their personal lives has a great influence over how comfortable they can be with adapting to new technologies in the workplace.

Explanation:

Telecommunications, networking, and wireless technologies are used regularly by most students, as those who are in studying years have grown with those technologies already developed. However, the rapid changes in technology that are common these days can become quite overwhelming, as they require users to constantly readapt to them. For example, our use of email has changed so much in the past years, with so many new lines of communication and new softwares that one has to learn how to use. And the more we get used to readapting, the more comfortable we can be when those changes become part of the workplace. It´s important to be prepared and to have the proper training to ensure the effective use of technology in such a fast-paced technological era.

7 0
3 years ago
Electrix Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the
Leni [432]

Answer:

<em>Employee stock ownership  plan</em>

Explanation:

An employee stock ownership plan (ESOP) is <em>a retirement plan wherein the employer contributes its shares (or funds to purchase its stock) to the fund for the advantage of the employees of the company.</em>

The company maintains an account for every employee who participates in the program.

Over time stock shares accumulate before an employee is eligible to them.

With an ESOP, while still working with the company, you never purchase or keep the stock directly.

If an employee is fired, decides to retire, is disabled, or dies, the company must transfer the stock shares in the account of the employee.

4 0
3 years ago
Master Production Scheduling is a process that brings all the demand and supply plans for the business (sales, marketing, develo
kow [346]

Answer:

False

Explanation:

Master Production Schedule, is used to determine when the materials will be used to produce an item.

Master Production Schedule (MPS) gives a formal detail of the production plan and converts this plan into specific material and capacity requirements. The requirements with respect to labor, material and equipment are then assessed.

Master production scheduling helps keep customer delivery promises through delivering in a timely and cost-effective manner.

5 0
3 years ago
The power to grant or withhold budget requests of agencies may be one of ________ most potent weapon in controlling the bureaucr
skad [1K]

Answer:

_Congress's_

Explanation:

The power to grant or withhold budget requests of agencies may be one of __Congress's______ most potent weapon in controlling the bureaucracy.

It the Congress who is responsible for the the budget allocation and distribution for the agencies according to The american constitution. This how they control the bureaucracy.  

6 0
3 years ago
Bacchus Enterprises has $12B in book value of common stock selling at a book to market rate of 1.35 and a beta of 1.5. The combi
goldfiish [28.3K]

Answer: 16.3%

Explanation:

Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.

Cost of preferred stock using the Capital Asset Pricing Model is:

= Risk free rate + Beta * ( Market return - Risk free rate)

= 4% + 1.23 * (14% - 4%)

= 16.3%

7 0
3 years ago
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