Answer:
means payment of a fixed percentage of net earnings as dividends every year.
Explanation: The amount of dividend in such a policy fluctuates in direct proportion to the earnings of the company. The policy of constant pay-out is preferred by the firms because it is related to their ability to pay dividends.
Answer:
I think the answer to your question is true(not sure sha)
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
Answer:
Hi
The logistics system of any company usually has the options of an external offer framework, specifying the use of the service of specification of agents of the environment through alliances and subcontracting, always looking for better levels of specialization that return in the achievement of the cables. In this sense, the logistics system tries to balance a permanent coordination scheme with all operating elements.
For the strategy and operation of logistics, it is necessary to build a strategic plan aligned with the strategic business plan, where it is necessary to detail the mission, vision, strategic objectives and program of actions to guide logistics management at all levels, planning inventories, supply, product receipts, mobility, third-party services, distribution and customer service. Given this, the bias associated with the traditional management of incidents or claims to be part of a proactive approach that plays a key role in improving the competitiveness of the company is avoided.
Explanation:
Answer:
$1,879,215.61
Explanation:
Given that,
EBIT = $320,000
Current cost of equity = 12.3%
Tax rate = 40 percent
Value of perpetual bonds = $936,000
Annual coupon rate = 6.5 percent at par
Value of the unlevered firm:
= [EBIT × (1 - Tax rate)] ÷ Current cost of equity
= [$320,000 × (1 - 0.4)] ÷ 0.123
= $192,000 ÷ 0.123
= $1,560,975.61
Value of the levered firm:
= Value of the unlevered firm + (Tax rate × Value of perpetual bonds)
= $1,560,975.61 + (0.34 × $936,000)
= $1,560,975.61 + $318,240
= $1,879,215.61
