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Ahat [919]
3 years ago
6

Avril Synchronistics will pay a dividend of $ 1.40 per share this year. It is expected that this dividend will grow by 7​% each

year in the future. What will be the current value of a single share of​ Avril's stock if the​ firm's equity cost of capital is 15​%?
Business
1 answer:
professor190 [17]3 years ago
4 0

Answer:

$18.73 per stock

Explanation:

we need to calculate the company's terminal value and we can use the dividend growth model:

P₀ = Div₁ / (Re - g)

  • Div₁ = $1.40 x (1 + 7%) = $1.498
  • Re = 15%
  • g = 7%

P₀ = $1.498 / (15% - 7%) = $1.498 / 8% = $18.725 ≈ $18.73 per stock

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Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typica
tangare [24]

Answer:

Annual wattage cost of 60 watts is $3.729

Annual LED cost of 60 watts is $0.185

total annual cost = $3.914

Annual wattage cost of 15 watts is $0.935

Annual LED cost of 15 watts is $0.125

total annual cost = $1.06

l

Explanation:

For the cost of LED and durability

it is require to use a light fixture 500 hours per year

60-watt incandescent light bulb costs $.37 and lasts 1,000 hours. that mean, its last for 2years before buying a new one.

And for a 15-watt LED,  costs $3.00 and lasts for 12,000 hours, thats means it will last for 24 years before purchase of another.

assuming, will are using the 60watts for 24years, a cost of  $.37*12times = $4.44 will be use for buying.

therefore, a 15 watts LED is more cheaper.

For the current charges of LED

for 60watts

if A kilowatt-hour of electricity costs $.113 =

1000 watts = 1hour = $0.113

60 watts  = 1hour  = (60*0.133/1000) = $0.0068

it is said that, the consumption is for 500 hour per year.

therefore, 60watts used per year = 500*0.0068 = $3.39

return of 10% =0.339.

total cost of watts for 500hr for a year = 3.39+0.339 = $3.729

Annual wattage cost of 60 watts is $3.729

Annual LED cost of 60 watts ($0.37/2year) is $0.185

total annual cost = $3.914

for 15 watts

if A kilowatt-hour of electricity costs $.113 =

1000 watts = 1hour = $0.113

15 watts  = 1hour  = (15*0.133/1000) = $0.0017

it is said that, the consumption is for 500 hour per year.

therefore, 15 watts used per year = 500*0.0017 = $0.85

return of 10% =0.085.

total cost of watts for 500hr for a year = 0.85+0.085 = $0.935

Annual wattage cost of 15 watts is $0.935

Annual LED cost of 15 watts ($3/24 years) is $0.125

total annual cost = $1.06

6 0
3 years ago
The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is:
AleksAgata [21]

Answer:

c. customer relationship management

Explanation:

Customer relationship management -

It is the method , to manage the interactions of the present or previous customers with the company , by using the data , is known as the customer relationship manangement .

It make use of all the previous data in order to increase the business realtionship with the cutomers , for better profit .

The CRM , takes help from the website of the compnay , emails , chats and even social media , to perform its task .

4 0
3 years ago
Dividend Company is a are company that as been profitable and growing for a long time. In the most recent shareholders report, t
Vlad1618 [11]
Dividends= $ that people who bought stock in a company receive. Generally, these increase when the company is doing well.
Stock= becomes more expensive the better a company is doing and has been doing for a while because it is in higher demand.

I predict that the company's stock will rise because it is in higher demand based upon it's consistently doing well. Make sense?
4 0
3 years ago
Westwick Inc. is an advertising agency. Its employees are allowed to take decisions and work in ways that will help maximize the
Anna35 [415]

Answer:

<em>C) Organizational plurality </em>

Explanation:

Organizational plurality is a working environment in which all representatives are encouraged to collaborate in a way that promotes the gains for the company, clients and themselves.

As with the advertising agency, the employees are given chances to follow their decisions and maximize their experience.

5 0
3 years ago
At age 50, Charles began receiving payments under a distribution method that provides for substantially equal payments over his
shusha [124]

Answer:

correct answer is 4) $169,000.00

Explanation:

given data

received distributions totaling =  $14,000

remaining benefits lump-sum = $155,000

solution

we know that substantial payment by as distribution method not subjected to the early distribution penalty

but lum sum amount distribution before age 59.5 is subject to 10% penalty

so here we can say till 59.5 year annuity payment not changed

so amount subject to the penalty is = $14000 + $155000

amount subject to the penalty is = $169000

so correct answer is 4) $169,000.00

4 0
3 years ago
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