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Anettt [7]
3 years ago
10

Super Carpeting Inc. just paid a dividend of $2.64 and its dividend is expected to grow at a constant rate of 5.50% per year. If

the required return on Super's stock is 13.75% what is the intristic value of Super's shares?
A- $48.00 per share
B- $32.00 per share
C- $33.76 per share
D- $38.40 per share
Which of the following statements is true about the constant growth model?
A- the constant growth model can be used if a stock's expected constant growth rate is more than its required return
B- The constant growth model can be used if a stock's expected constant growth rateis less than its required return
Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.
If Super stock is equilibrium, the current expected dividend yield on the stock will be ______ per share
Super's expected stock price one year from today will be ____ per share
If Super's stock is in equilibrium, the current expected capital gains yield on Supers stock will be _____
Business
1 answer:
TiliK225 [7]3 years ago
5 0

Answer:

1. C. $33.76 per share

2. B- The constant growth model can be used if a stock's expected constant growth rateis less than its required return

3. 8.25% ; $35.62 ; 5.5%

Explanation:

1. Using the Constant Growth Model to calculate the intrinsic value would be best given the above values.

The formula is;

Value = Next Dividend / (Required Return - Growth rate)

Value = (2.64 * ( 1 + 5.5%)) / ( 13.75% - 5.5%)

Value = 2.7852/8.25%

Value = $33.76

2. Going by the formula, if the expected growth rate is more than the required return, the intrinsic value would be a negative number and a stock's price cannot go below 0. The growth rate has to be less than the required return for this to work.

3. At Equilibrium, the stock dividend is growing as it should.

Dividend Yield should therefore be;

= Next Dividend / Stock Value * 100

= (2.7852 / 33.76) * 100

= 8.25%

Stock Price should grow at the growth rate so;

= 33.76 * ( 1 + 0.055)

= $35.62

Gains yield refers to what rate the stock will change in value. Growth rate is 5.5% so that will be the answer.

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Answer:

a. A job needs to be divided into types of work so that it can be coordinated in some logical way. ==>TRUE.

b. Work is the output that comes from the accomplishment of tasks. ==>FALSE.

c. Work is effort directed toward accomplishing results.==>TRUE.

d. Ideally, the work to be done in any organization should be significantly less than the amount of work that the organization needs to have done.==>FALSE

Explanation:

For a Job to be effectively executed, the steps required to carry out the job needs to be properly outlined, this itemized steps can be regarded as the work that needs to be done to properly execute the job.

Every work done has to be goal oriented, this is done to give the workers a sense of direction and also to avoid wasting time, energy and resources on things irrelevant to the job at hand.

Work done on an organization has to be equal to or more than it had planned to carry out in order to achieve the organization overall objectives.

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3 years ago
An example of a company connecting with customers to add value in its package redesign strategy is Blank______.
kakasveta [241]

An example of a company connecting with customers in its package redesign strategy is creating a resealable package in response to consumer habits.

<h3>What is a redesign strategy?</h3>

A redesign strategy outlines which best practices should be employed first and which should be avoided in order to achieve the goals of the redesign endeavor.

Steps to a successful redesign of business processes:

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To know more about design strategy refer to: brainly.com/question/14506200

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On January 2, 2020, Pronghorn Company sells production equipment to Fargo Inc. for $52,000. Pronghorn includes a 2-year assuranc
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Answer:

January 2, 2020

Dr Cash $52,000

Cr Sales Revenue $52,000

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Dr Warranty expense $890

Cr Cash $890

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Cr Warranty Liabiltiy $640

Explanation:

Preparation of the journal entry to record this transaction on January 2, 2020, and on December 31, 2020.

January 2, 2020

Dr Cash $52,000

Cr Sales Revenue $52,000

December 31, 2020

Dr Warranty expense $890

Cr Cash $890

December 31, 2020

Dr Warranty expense$640

Cr Warranty Liabiltiy $640

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