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Tomtit [17]
3 years ago
15

Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expe

cted earnings this year are $4 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter the growth rate as a whole percent.):
Business
1 answer:
Temka [501]3 years ago
7 0

Answer:

Assume that the Plow back Ratio is 50

Now,

To Compute the growth rate;

Growth rate = Return on equity × Plow back ratio

Growth rate = 10% × 0.50

Growth rate = 5.0%

Computation of the stock price.

Stock price = Dividend pa share / (Required rate - Growth rate)

Stock price = Earnings pa share × (1 - Plow back ratio) / (Required rate -Growth rate)

Stock price = $4 × (1 - 0.50) / (10% - 5.00%)

Stock price = $2.00 / 5.00%

Stock price = $40

Computation of the P/E ratio.

PIE ratio = Stock price / Earnings pa share

PIE ratio = $40 / $4

PIE ratio = $10

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Louise owned a house next to Robert's house. Robert made a contract with Midcity Painters to paint his house. The painters arriv
Aloiza [94]

Answer:

Louise's defense is not valid. She was involved in an Implied-in-fact contracts

Explanation:

Implied-in-fact Contracts

This is a contract that is legally enforceable as a result of an agreement made by conduct and from assumed intentions. These conducts and assumed intentions are derived from the relationship among the involved parties.

When Louise saw Midcity Painters painting her house and made no comments, she became involved a implied-in-fact contract. The conduct of Midcity to paint her house and her conduct to be quiet infact formed a legally enforceable contract.

Louise, therefore, liable. However, due to the lack of contractual terms such as payment for the job done, Louise will be liable for the nominally or typically acceptable rate for such a job done. For instance, if a normal house paint job costs $2000, Louise is liable to pay $2000 for the implied contract.

3 0
3 years ago
A manufacturer of luxury yachts would use which type of costing​ system?
GaryK [48]
The answer is Job costing. Because Job costing is used for small production of unique products such as yachts.
7 0
3 years ago
Sam and Teresa run a catering business in which they have two major tasks: getting new clients and preparing food for events and
Sergio [31]

Answer:

The number of new clients will increase by

12/3 = 4

Therefore, the number of new clients will increase by 4.

Explanation:

In getting new client, Sam takes 5hours, while Terasa takes 3hours.

In preparing food, Sam takes 10hours while Teresa takes 12hours.

It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.

Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.

Teresa will free up 12hours she used in the preparation of food.

Since she use 3hours to get new client, She will get

12/3, which equals 4 number of clients

8 0
3 years ago
If Joe to Go decides that a joint venture has too much risk and franchising does not provide enough financial payoff, what strat
Temka [501]

<u>Answer:</u>

<em>It chooses (D) Direct investment exporting  strategy</em>

<em></em>

<u>Explanation:</u>

Countries in a few decades have made significant forward jumps towards a comprehensive domain, which has contributed incredibly to making worldwide business dealings free from restrictions. In the overall marvel of Globalization, outside direct speculation (FDI) is quickly turning into a significant factor in the commercial development of firms and nations.

For any firm to create and develop it needs to extend its exercises all around, and to accomplish that target; there are diverse market section modes accessible to the firm going from FDI.

5 0
3 years ago
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If you are in a hostile emergency situation, you should contact everyone you know using as many telephone lines as possible
ratelena [41]
The correct answer to this question is True
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