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3 years ago

From power perspective, dependence would be low when ________.

Business

1 answer:

max2010maxim [7]3 years ago

7 0

Answer:

The correct answer is letter "E": the goods have substitutes.

Explanation:

Dependence is a characteristic of certain goods that because of their importance certain groups of individuals or organizations cannot stop consuming them. People, in general, have a dependence on consumer staples such as food, drugs, and basic household products, for instance.

<em>Dependence is low when the goods have many substitutes since if one of them fails in supply or raises its price to unreasonable levels, individuals will have options from where to choose to replace it.</em>

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3 years ago

Which of the following skills are

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Answer:

A. organization

Explanation:

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3 years ago

SCI just paid a dividend (D₀) of $1.92 per share, and its annual dividend is expected to grow at a constant rate (g) of 4.00% pe

Readme [11.4K]

Answer:

intrinsic value of SCI’s shares is $33.28 per share

Explanation:

given data

dividend (D₀) = $1.92 per share

constant rate (g) = 4.00% per year

required return (rs ) = 10.00%

to find out

intrinsic value of SCI’s shares

solution

we know that intrinsic value is here express as

intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate ) .............................1

put here value we get

intrinsic value = $\frac{1.92*(1+0.04)}{0.10-0.04}$

intrinsic value = 33.28

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3 years ago

The Evanec Company's next expected dividend, D1, is $3.95; its growth rate is 4%; and its common stock now sells for $37.00. New

Trava [24]

Answer:

rs=14.68%

F=15%

re=16.56%

Explanation:

using the constant growth model:

$P0=\frac{D1}{rs-g}$

where P0 is the current stock price

D1 is the dividend expected at the end of the 1st year

rs is cost of retained earnings.

Rearranging to make rs subject of the formula:

$rs=\frac{D1}{P0}+ g$

$rs=\frac{3.95}{37}+ 0.04 = 0.1468$

if Evanec issues new stock, they will only net $31.45 down from $37 per share due to floatation costs. The difference, ie $37-$31.45 = $5.55 is due to floation costs.

The percentage floatation costs (F) are $\frac{5.55}{37} = 0.15 = 15%$

alternatively, one can recognise that $37(1-F)=31.45$ and F = 15%

Cost of new common stock re is calculated as follows:

$re=\frac{D1}{P0(1-F)}+ g$

$re=\frac{3.95}{37(1-0.15)}+ 0.04 = 0.1656 = 16.56%$

6 0

3 years ago