How can you determine if a company is profitable

Stock A is expected to provide a dividend of $13.4 a share forever. Stock B is expected to pay a dividend of $6.7 next year. The

mash [69]

Answer: Stock A is expected to provide a dividend of $13.4 a share forever which means it is a perpetuity. The market capitalization is 10% which means that 10% is the required rate of return. The formula to find the value of a perpetuity is Cash Flow/Rate

The cash flow is 13.4 and rate is 10% so 13.4/0.1= $134

The present value of Stock A is $134

Stock B is expected to pay a dividend of $6.7 next year and then have a constant growth rate of 6% forever, so we can find what the present value of Stock B will be next year using the DDM method and then discount that value to this year.

1 year from now dividend = 6.7

Growth = 4%

R= 10%

Formula = D*(1+G)/R-G

= 6.7*(1+0.04)/0.1-0.04=116.113

Now we need to discount 116.113 back one year so 116.113/1.1= 105.57

The present value of Stock B is 105.57

For stock C the next year dividend is 6.7 and then for 5 years the growth rate is 20% and then 0 forever so we need to find the value of stock C 6 years from now and then discount it back.

Dividend 1 year from now = 6.7

Dividend 6 years from now= 6.7* (1.2)^5=16.67

Value of stock 6 years from now

D= 16.67

G= 0

R= 10

16.67*(1+0)/(0.1-0)

=166.7174

Now we need to discount back this value 6 years to find the present value of the stock

166.7174/1.10^6

=94.10

The highest present value at a market capitalization of 10% for each stock is of stock A which is $134

Explanation:

3 0

4 years ago

Sonia, a manager at an advertising agency, prepares a report to record the work completed so far and the work remaining on her n

nekit [7.7K]

Answer: (C) An interim report

Explanation:

An interim report is one of the type of report system in an organization that helps in collecting the various types of financial based data by properly analyzing on the basis of the performance.

The main objective of the interim report is to give timely update with the proper entity of the performance in an organization. In this report, the company statement include all the financial based information which contains the whole year report of the company.

According to the given question, Sonia is the manager of a advertising agency and she has prepared an interim report by proper analyzing the work quality and some recommendations for the project.

Therefore, Option (C) is correct answer.

5 0

4 years ago

Sheridan Company purchased land as a factory site for $1350000. Sheridan paid $114000 to tear down two buildings on the land. Sa

Zina [86]

Answer: $‭1,482,360‬

Explanation:

The cost of the land will be all the costs that were incurred to get it ready for use.

= Purchase price + cost of tearing down two buildings + legal fees + Title insurance + Assessment Cost - Salvage

= 1,350,000 + 114,000 + 5,060 + 3,500 + 9,800 - 8,100

= $‭1,482,360‬

4 0

3 years ago

Review how organizations interact with their external environment (as open systems and complex adaptive systems). How effective

Aliun [14]

Answer: Organizations with open systems exchange information and resources with their external environment. However, they manage to control these interactions by generating permeable boundaries which permit necessary exchange while being shielded from external disturbances. The interaction of the FBPS and the external environment as an open system during the closure of the Hampton and Culpeper campuses was poor and ineffective. The closure was considered abrupt to the families and the surrounding communities. The school denied intending to close following the leaked email, just to protect its administration from parents’ outrage. The school lacked healthy exchange of information with its external environment.

Complex adaptive systems refer to dynamic systems which are capable of evolving with and adapt in a changing environment . The FBPS system was surrounded by a number of changes shortly before its closure. The external environment was experiencing financial crisis, intense competition from public schools that are independently operated and chartered. The school was unable to keep up or to adapt to changes that were taking place. They gave in to competition, losing most of their students to their chartered public schools competitors.

Explanation:

8 0

4 years ago

Which of the following is likely to happen if employees think that their organization is

enyata [817]

Explanation:

If employees think their organization is overly driven by politics then

The employees are less committed to the organization
The employees have lower job satisfaction and perform worse on the job
The employees have higher levels of job anxiety
The employees also have a higher incidence of depressed mood.

4 0

3 years ago