Answer:
The price of the stock is $66.5
Explanation:
The constant growth model of the DDM approach will be used to calculate the price of such a stock today.
The formula for the constant growth model is,
P0 or V = D0*(1+g) / r - g
As the growth rate in the company's dividedn is negative, the growth rate will be -5%.
The price of the stock is,
P0 = 11.9 * ( 1 - 0.05) / 0.12 + 0.05
P0 = $66.5
The accessory designer is required to actually design accessories with their knowledge of fadhion, while the sales representative only needs the ability to sell the accessory.
Answer:
The correct answer is letter "D": The disclosure rule.
Explanation:
In management, the disclosure rule implies releasing relevant information of the company to the masses. Executives face an ethical dilemma when the information could harm the firm's public image or when the information is manipulated so the information that could compromise the organization is not provided to the audience.
Answer:
0.19625 or 19.63%
Explanation:
Cost of retained earnings, r:

where,
D0 = Dividend paid yesterday
g = Expected growth rate of dividend
P0 = Current price of common stock


= 0.09625 + 0.1
= 0.19625 or 19.63%