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mariarad [96]
3 years ago
12

Using the profitability index method, the present value of cash inflows for project flower is $88,000 and the present value of c

ash inflows of project plant is $48,000. if project flower and project plant require initial investments of $90,000 and $40,000, respectively, and have the same useful life, the project that should be accepted is
Business
1 answer:
ICE Princess25 [194]3 years ago
4 0
Im not so sure yu should ask somebody thats really good in math sorry i couldnt help
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stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The requ
USPshnik [31]

Answer:

The stock price 5 years from now will be 44.46

Explanation:

The stock price will increase like  compound interest at the same rate as the dividends.

Stock(1+ g)^{time} = Amount

Stock 35.25

time 5

dividend grow rate 0.0475

35.25 (1+ 0.0475)^{5} = Amount

Amount 44.45588696

The stock price 5 years from now will be 44.46

<u>Reasoning:</u>

In five years, if we calcualte the gordon dividend growth model:

\frac{divends_{year5}}{return-growth} = Intrinsic \: Value

and year 5 dividends would be:

Dividend\: (1+ g)^{5} = Divends_{year5}

\frac{Dividend\: (1+ g)^{5}}{return-growth} = Intrinsic \: Value

we can arrange the formula like this:

\frac{Dividend}{return-growth} \times (1+ g)^{5}= Intrinsic \: Value

The first part is the current stock price so our formula is confirmed.

$Market Value Today \times (1+ g)^{5}= Intrinsic \: Value

6 0
3 years ago
Chica, a women's clothing store, held a "prize drawing" for a $500 shopping spree on saturday that it had advertised throughout
d1i1m1o1n [39]
I think she did because she know the prize is $500.00.
3 0
4 years ago
Difference between monopoly and perfectly competitive market structure ​
zmey [24]

Answer:

see below

Explanation:

1. In a monopoly, one firm dominates a large market. Only one seller is serving a large number of buyers. In a perfectly competitive market structure, many sellers are competing to sell to many buyers.

2. A monopoly has no competition for its products. There are no close substitutes, which leaves customers with no other option but to buy from the monopoly. In perfect competition, sellers sell identical products. There is stiff competition for the product being sold.

3. In a monopoly, there are strong barriers to entry and exit from the market. In a perfectly competitive market, restrictions on entry or exit are absent.

4. The price for a monopoly is always set above the average cost, while in perfect competition, the price set is equal to the marginal cost.

5. A monopoly has full control over its price and can offer different prices to different groups of customers. In a perfects competition, the firms cannot practice price discrimination because they have no control over prices.

5 0
3 years ago
__________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensat
Nikolay [14]

Answer:

Employee Resources Management (ERM)

Explanation:

Employee Resources Management (ERM), modules makes use of Customer Relationship Management tools to attend to matters relating to employees' such as employee retention and performance..

4 0
3 years ago
In business, failure usually means what? A. The market wasn't saturated enough. B. The company was unethical. C. The customers h
Pie
Hi!

Usually, in the business world, the reason for failure is due to the company running out of money this can be a culmination of all the reasons listed above or for other reasons, but a company is not really considered a failure until it runs out of money.

-<span>ASIAX </span><span>  </span><span>Frequent Answerer</span>
5 0
3 years ago
Read 2 more answers
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