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Papessa [141]
3 years ago
10

Company X just paid $1.95 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividend

s will be increasing by 4.3 percent. If you require a rate of return of 8.5 percent, how much are you willing to pay today to purchase one share of the company's stock
Business
1 answer:
Llana [10]3 years ago
3 0

Answer:

The fair price of stock today is $48.425 and that is the most one should be willing to pay today.

Explanation:

The company's dividend will grow at a constant rate of 4.3% which means that the constant growth model of Dividend Discount Model will be used to calculate the price of a stock today.

The formula for Constant growth model is,

P0 = D0 (1 + g) / r - g

Where,

  • D0 is dividend today
  • r is the required rate of return
  • g is the growth rate in dividend

P0 = 1.95 * (1+0.043) / 0.085 - 0.043

P0 = $48.425

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Mining Corporation bought land for $330,000 (residual value $22,000) that is estimated to yield 660,000 pounds of a removable na
likoan [24]

Answer:

35933

$46,200

Explanation:

Depletion = amount of pounds extracted x depletion factor

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Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for CasualDining, Inc., to open as Eat
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Answer:

D

Explanation:

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7 0
2 years ago
terin, the chief human resources officer for a major financial services company, has met with each of her employees to set their
MArishka [77]

Given that Terin's employees have set their objectives in the company, the next thing that Terin expects from these employees would be to develop action plans.

Option D is the correct answer to this question. The action plans are sets of strategies that the employees have laid out that would help them to achieve their goals and objectives.

In order to do this, they have to make up lists of the things that they want to achieve in the firm and also list the strategies that they would employee to achieve them.

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3 0
2 years ago
A(n) ________ strategy focuses on new market and product development, innovation, and joint ventures. privatization external gro
Stolb23 [73]

Answer:

Internal growth.

Explanation:

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Internal growth is also known as organic or natural growth. Growth results in increased profit which is now reinvested in the business.

6 0
3 years ago
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