1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
grandymaker [24]
3 years ago
5

A firm has a current price of $40 a share, an expected growth rate of 11 percent and expected dividend per share (D1) of $2. Giv

en its risk, you have a required rate of return for it of 12%. Your expected rate of return and investment decision is as follows:a. 10% - do not buy.b. 12% - do not buy.c. 14% - buy.d. 16% - buy.e. 18% - buy.
Business
1 answer:
Xelga [282]3 years ago
7 0

Answer:

d. 16% - buy

Explanation:

R = (D1 / P0) + g

Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11

Expected Return = R = ($2/$40) + 11%

R = 0.05 + 0.11

R = 0.16

R = 16%

Expected Return is higher than the required return of 12%.  Hence, it should be bought (it is expected to give higher return than required)

You might be interested in
Economic activity in developing countries is limited at least in part due to limited investment. Investment is limited mostly du
Tpy6a [65]

Inflation is the economic condition in which the interest rate keeps increasing which is beneficial for the lenders. But not a fixed rate lender.

<h3 /><h3>What is Interest Rate?</h3>

Interest rate is the prevailing market rate which the lender of the money gets in return for the money provided as a loan.

If there is a fixed interest contract the lender will get the same percentage of return for the duration of contract, no matter the fluctuation of the interest rate in the market. This is not beneficial when the economy is facing inflation. As whatever be the rate in the market (definitely higher) the lender will get the same percentage of return.

However if there is a variable rate contract the rate is updated and the lender is paid at the updated interest rate. This is beneficial when the economy is facing inflation.

Learn more about interest rates at brainly.com/question/28142837

#SPJ1

4 0
2 years ago
Suppose that you are given the following information:
Phoenix [80]

Answer:

a) 406200000

b) 7500000 and 5.36%

c) 0.7

Explanation:

please find the attached file

5 0
3 years ago
Q1 The following is a description of the conversion cycle of Central Production Limited: The conversion cycle of the company is
Arturiano [62]

Answer:

a)

To my view, the MD viewpoint is better. In companies the existing process is usually analyzed and the pain points identified whenever there is a need for change. The new system is simply a change to the existing system. The stakeholders' specific needs are not completely addressed. The MD calls for a collection of and analysis of demands from scratch to share its needs , requirements and inhibitions between the principal stakeholders. The CIO and their staff would be able to assess in the requirements review process what worked and what did not work well for the organization.

In assessing the current process, the CIO and his team will align their thinking process with the pain points and correct the existing system. They are not going to build the system in a fresh light. A new system that meets the needs of stakeholders can be developed. For everybody, this is a win-win situation. The point of view of MD is therefore more logical and related.

b)

In the particular case, the most logical and comprehensive system analysis method is:

Primary stakeholder requirements collection: Primary stakeholders using the system must be consulted on their specific requirements and needs. It is also necessary to consider the limitations identified by stakeholders.

Comprehension of existing system and pain points: the current system can be analysed based on requirements collection and pain points can be emphasized in the current system.

A new system that will win for everyone: the new system must primarily comply with the needs of the stakeholders.

Presentation and approval of the system blueprint to stakeholders

Development and implementation of the system: system development can be carried out by the agile method of sprinting.

Monitoring and control of the system: to check for performance deviations, the system implemented should be observed. In order to monitor deviations, specific intervention can be implemented.

7 0
3 years ago
Susanna strongly believes in the relationship between workplace communication and employee productivity, and she agrees with Ale
drek231 [11]

Answer:

The correct answer is number "2": allow them to continue for a reasonable amount of time.

Explanation:

According to Alex Pentland and Benjamin Waber’s "<em>Productivity through coffee breaks</em>", employees who relate to each other the most are more productive because as they have a certain knowledge of each one of them, they could make better work-related decisions.

In that case, as Susanna believes in Alex Pentland and Benjamin Waber’s research, she is likely to allow Steven and Amy to keep talking in Amy's cubicle for a reasonable time.

6 0
3 years ago
All the occupation are equally important how and why .<br><br><br><br><br> ​
sveticcg [70]

It is true that some jobs require more training and experience than others. Also, that some jobs carry more responsibility, pay more, and have greater status.

But that doesn’t mean one job is more important than another.

In an organization, everyone matters and no one should look down upon someone for the work they are doing.

Remember, every job should be valued. And, every person should be treated with dignity and respect.

6 0
3 years ago
Other questions:
  • You are the CEO of a small firm that manufactures office furniture. The decision-making authority in your firm rests almost enti
    6·1 answer
  • During the twentieth century, the real income of blue-collar workers in western societies __________ overall, although it has __
    9·1 answer
  • In the 1980s, Japanese competitors brought better-quality chips to the market at lower cost, threatening Intel Corporation's pos
    12·1 answer
  • Informative advertising :
    15·2 answers
  • Nebulus Corporation owns 30% of the voting stock of Suite Company. It reports the 30% interest as an equity method investment, w
    14·1 answer
  • The cost of energy consumed in producing good units in the Bottling Department of Mountain Springs Water Company was $36,850 for
    11·1 answer
  • Renata and Danuta would like to form a business providing take-out meals to homebound destitute residents of Las Vegas. The meal
    10·1 answer
  • Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make six equal payments, each to be
    8·1 answer
  • What budgeting tips would you help to stay on track financially
    7·1 answer
  • Project ____ management involves generating, collecting, disseminating, and storing project information.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!