Answer:
$1.25
Explanation:
dividend growth:
year growth rate dividends
1 24% Div₁ = 1.24Div₀
2 24% Div₂ = 1.24²Div₀ = 1.5376Div₀
3 24% Div₃ = 1.24³Div₀ = 1.906624Div₀
4 14% Div₄ = 1.906624Div₀ x 1.14 = 2.17355136Div₀
indefinite 8% Div₅ = 2.17355136Div₀ x 1.08 = 2.347435Div₀
required rate of return = 10%
current stock price = $86
stock price for terminal growth rate = Div₅ / (10% - 8%) = Div₅ / 2% = 117.3717734Div₀
current stock price = $86 = 1.24Div₀/1.1 + 1.5376Div₀/1.1² + 1.906624Div₀/1.1³ + 2.17355136Div₀/1.1⁴ + 117.3717734Div₀/1.1⁴ = 1.12727Div₀ + 1.27074Div₀ + 1.43247Div₀ + 1.48456Div₀ + 80.1665Div₀ = 85.48154Div₀
$86 = 85.48154Div₀
Div₀ = $86 / 85.48154 = $1.006065
Div₁ = 1.24 x $1.006065 = $1.2475 ≈ $1.25
Answer:
the expected return on the portfolio is 12.34%
Explanation:
The computation of the expected return on the portfolio is shown below:
Expected Return is
= Investment in BBB × Return+ Investment in ZI × Return
= 16.4 × 48% + 8.6 ×52%
= 7.87% + 4.47%
= 12.34%
hence, the expected return on the portfolio is 12.34%
Answer:
Disruptive innovation.
Explanation:
Disruptive innovation is one that creates the way a market operates, that is it creates a new market and disrupts the old one. Existing firms and products are displaced.
In this instance when Futura Inc. introduced an automobile that could run completely on electricity for longer periods of time than any other electronic or hybrid automobile, it introduced a product that will cause disruptions in the current automobile industry.
Although there was challenges of frequent repairs, this was eventually resolved.
Answer:
Participative leadership style
Explanation:
Path goal theory is a leadership theory that specifies the leadership style that should be used in an organization to achieve a goal based on the employees and the working environment. The following steps are to be taken based on the path goal theory:
- Determine the employee and environmental uniqueness based on their needs.
- Selecting a leadership style and adjusting this style based on the employees need.
- Focusing on how to motivate the employee to achieve the goal
Participative leadership style is a style in which leaders involves their subordinates by asking them for suggestions before making a decision. This style is best used when subordinates are highly involved and trained.
