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Arisa [49]
3 years ago
10

The fi corporation's dividends per share are expected to grow indefinitely by 5% per year. ( lo 13-3 ) 1. if this year's year-en

d dividend is $8 and the market capitalization rate is 10% per year, what must the current stock price be according to the ddm? page 438 2. if the expected earnings per share are $12, what is the implied value of the roe on future investment opportunities? 3. how much is the market paying per share for growth opportunities (that is, for an roe on future investments that exceeds the market capitalization rate)?

Business
1 answer:
tankabanditka [31]3 years ago
3 0

Answer:

1. $160

2. 15%

3. $40

Explanation:

the attached picture shows the full explanation

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A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ide
slava [35]

Answer:

Screening

Explanation:

Screeningprocess used to access innovative product ideas, strategies and marketing trends to determine their consistency with the company's objective. It is used to eliminate unsound ideas and accept sound ones.

Screening can be used to check the compatibility if an idea with a business objective. It involves a process of determining which product aligns with the target audience and the benefits of producing it.

The screening stage is a very important stage in the development of a new product because if a product that doesn't conform with the business objective or the product doesn't have a tendency of being profitable to the organzation passes the screening stage, it means the product will lead to wasted effort and resources in the other stages.

Therefore, a product should be properly screened passing the screening stage.

4 0
3 years ago
Read 2 more answers
starbucks repurchased over 1.4 billion of its common stock in 2015. did this repurchase increase or decrease roe
IRINA_888 [86]
Starbucks reports net income for 2015 of $2,558.4 million. Its stockholders' equity is $5,716 million and $6,262 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer % b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE? ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares increases the denominator (avg. stockholders' equity). ROE usually decreases since the repurchase of shares increases the denominator (avg. stockholders' equity). c. Why do you think a company like Starbucks repurchases its own stock? Companies repurchase their own stock if they feel it overvalued by the market. Companies repurchase their own stock if they feel it undervalued by the market.
8 0
3 years ago
"A customer buys pharmaceutical and utility stocks in his portfolio. This portfolio would be best characterized as:"
lilavasa [31]

Answer:

Defensive Portfolio

Explanation:

Defensive portfolio consist of stocks that are protected from the market movement forces such that they perform acceptably well both during good and bad economic times, much unlike cyclical stocks. The companies within the portfolio are those that manufacture and produce essential goods and services and therefore will also thrive when the economy is in a difficult state.

Many defensive portfolio companies offer dividends with the effect of reducing capital losses.

4 0
3 years ago
Fran’s Fries has budgeted sales for May, June and July at $500,000, $680,000 and $720,000, respectively. Sales are 80% cash and
nika2105 [10]

Answer:

Results are below

Explanation:

Giving the following information:

Sales are 80% cash and 20% on account.

Sales:

May= $500,000

June= $680,000

July= $720,000

Cash collection June:

Cash collection from May= (500,000*0.2)= 100,000

Cash collection June= (680,000*0.8)= 544,000

Cash collection June= $644,000

Cash collection July:

Cash collection from June= (680,000*0.2)= 136,000

Cash collection July= (720,000*0.8)= 576,000

Cash collection July= $712,000

3 0
3 years ago
Teams at Systech Corp. come from many different countries, with skills ranging from creativity to communication to search engine
motikmotik

Answer:

Diversity

Explanation:

Team diversity means a team composed people who can be distinguished on  factors like gender, age, demography, culture, range of skill set , nationality, religious and social background. Diversity is promoted in team to promote innovation, efficiency and improved performance as each member complements other with his/her unique attribute.

Since, as Systech corp, team is composed of people with different nationality and diverse skill,  it can be rightly said that such team is example of team diversity based on above mentioned definition of team diversity.

8 0
3 years ago
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