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Juli2301 [7.4K]
3 years ago
15

Jand, Inc., currently pays a dividend of $1.22, which is expected to grow indefinitely at 5%. If the current value of Jand’s sha

res based on the constant-growth dividend discount model is $32.03, what is the required rate of return? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Anastasy [175]3 years ago
4 0

Answer: 9%

Explanation:

The required rate of return is basically how much an investor is expecting in return for his investment.

The formula for price of stock is =

P = Do(1+g)/rs - g

P = price of stock

Do = dividend

g = growth

rs = required rate of return

We need to find out rs, therefore,

32.03 = 1.22(1+5%)/rs- 5% = 9%

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Answer:

U.S. appliance manufacturers would be more likely successful if they used a <u>Transnational</u> marketing strategy

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Transnational marketing strategy is a more personalized approach to selling and marketing with target customers need, shopping preferences and specifications put into consideration in the designing of the goods and services.

This strategy applies to the U.S. appliance manufacturers selling to different countries.

Therefore, people in Northern Europe who shop only once a week will be presented with bigger refrigerators while Southern Europeans who shop daily can opt for smaller ones.

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Sliva [168]

Answer: B

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3 years ago
You have $7,600 to deposit. Regency Bank offers 12 percent per year compounded monthly (1.0 percent per month), while King Bank
Goryan [66]

Answer:

Regency Bank : $51,347.27

King Bank : $46,590.99

Explanation:

The formula for calculating future value:

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King Bank : $7600 x 1.12^16 = $46,590.99

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3 years ago
Balance sheets usually classify assets into at least two major categories: current assets and
astraxan [27]

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Mademuasel [1]

The correct option is C. The consumer will have to pay more because the supply of gasoline will decrease, which would put upward pressure on the price.

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