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sasho [114]
3 years ago
12

Summit Systems has an equity cost of capital of 11.5%, will pay a dividend of $1.50 in one year, and its dividends had been expe

cted to grow by 7.0% per year. You read in the paper that Summit Systems has revised its growth prospects and now expects its dividends to grow at a r of 4.0% per year forever.
a. What is the drop in value of a share of Summit Systems stock based on this information?
b. If you tried to sell your Summit Systems stock after reading this news, what price would you be likely to get?
Business
1 answer:
Anni [7]3 years ago
5 0

Answer:

Explanation:

Ok

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Making a prediction today about the​ world's population in twenty years based on current growth trends is an example of ▼ normat
iragen [17]

Answer: Positive, Normative

Explanation: Positive economics is based on facts and objects that can be verified. While, normative economics is based on value based judgement that are difficult to verify.

Making a prediction today about the​ world's population in twenty years <em>based on current growth trends</em> is an example of <em>positive economics</em>.

<em>Advising</em> the residents of a town to choose a toll road over a freeway extension due to a limited budget and high trucking usage is an example of <em>normative economics</em>.


6 0
3 years ago
The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production
masya89 [10]

Answer:

Total Equivalent Units Conversion    746,000

Explanation:

Breakfast Cereal Maker

Weighted-Average Inventory Method

Total Equivalent Units

                                     Units               Conversion     Equivalent Units

Particulars                                                   %

Units completed         620,000               100 %             620,000

<u>Add Ending WIP          180,000                70 %               126,000</u>

<u>Total Equivalent Units                                                      746,000</u>

<u />

<em>The total Equivalent units are obtained by adding the percent of the units in the ending work in process inventory to the units completed and transferred out. This is the average weighted method of finding the equivalent units.</em>

<em>As only conversion is required we found out the conversion units only.</em>

3 0
3 years ago
I will pay 5$ to the who solve it
elena55 [62]

Answer:

a. The price that the company should sell the new toy at if it prices at cost plus profit at 100% profit markup is:

= $20.

b. The price that the company should sell the new toy at if it prices using competitive pricing is:

= $22.50 (average of competitors' prices)

c. The price that the company should sell the new toy at if it prices using penetration pricing is:

= $20 (lowest market price)

d. The price that the company should sell the new toy at if it prices using price skimming is:

= $25.

Explanation:

a) Data and Calculations:

Cost of producing a new toy = $10

Competitors' prices are:

Product A – $25

Product B – $20

Product C – $23

Product D–  $22

Total =          $90

Average price = $22.50 ($90/4)

Cost =   $10

Markup   10 ($10 * 100%)

Price = $20

b) An important consideration in the pricing of products is customers' and competitors' reactions to the firm's selling price.  The purpose of considering customers is to ensure that enough demand is generated to cover production cost and make profits.  Competitors can wage price wars to discourage new entrants into their markets.  Many pricing methods are in use, depending on the prevailing market realities.

4 0
3 years ago
About 85% of this country is counted in the labor force is involved in agriculture. This country mostly produces cocoa, coffee,
Sever21 [200]

Answer:

Traditional Stage

Explanation:

In the traditional stage, most of the occupation of the population is always agriculture, the people are over reliant on the finished goods of other countries because of their lower wealth and most of the population is living in the rural areas, which is the case here. As it seems that the country is struggling to achieve a take-off stage because it is trying to attract foreign investment (An American company has invested in Oil reserves extraction), so we can say that it is still in the traditional stage because it hasn't increased its home demand for technology, infrastructure development, production increases, greater trade with other countries, etc which are the characteristics of the take-off stage.

5 0
3 years ago
Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision sta
artcher [175]

Answer:

d. evoke powerful and compelling mental images

Explanation:

The organizational vision is used so that companies have as aspirations to achieve their objectives and goals that will help companies to reach a desired place that helps the company to expand and obtain new achievements.

Therefore, when making a vision statement, companies combine powerful and attractive mental images to attest to goals that generate value for stakeholders, causing greater identification with an inspiring vision where there are development plans not only for their businesses, but for company in which the company operates eg.

6 0
3 years ago
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