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Elza [17]
3 years ago
13

Westover Winds just paid a dividend of $2.10 per share. The company will increase its dividend by 8 percent next year and will t

hen reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 11 percent?

Business
1 answer:
Alla [95]3 years ago
7 0

Answer:

Price today = $26.54

Explanation:

The price of the stock can be calculated using the Dividend Discount Model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock.

The formula to calculate the price of the stock is attached.

Price today = 2.1 * (1+0.08) / (1+0.11)  +  2.1 * (1+0.08) * (1+0.06) / (1+0.11)^2  +  

2.1 * (1+0.08) * (1+0.06) * (1+0.04) / (1+0.11)^3  +  

[(2.1 * (1+0.08) * (1+0.06) * (1+0.04) * (1+0.02)) / (0.11 - 0.02)] / (1+0.11)^3

Price today = $26.54

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labwork [276]

The option available for Roddie would be "Roddie has no options under ADEA."

To understand this, we need to go through the terms of 'Age Discrimination Policy in Employment Act;'

  • This Act covers the cases of employees or workers aging either 40 or above who have suffered age-based discrimination.
  • The people aging under 40 are not covered under this act and hence, the benefits can not be reaped by them in any situation.
  • This law doesn't allow the process of giving preference to an older employee over the younger to be considered illegal.

Hence, Roddie has no available options under ADEA as he is below 40(in fact only 30 years old) and he cannot claim under ADEA for justice.

Learn more about 'Age Discrimination in Employment Act (ADEA)' here: brainly.com/question/7239617

5 0
3 years ago
Milton Bradley/Parker Brothers are producers of many board games, such as Monopoly, Battleship, Yahtzed, and Clue. The company h
Kamila [148]

Answer:

The correct answer is consumer- generating marketing,option B

Explanation:

Consumer-generating  marketing is powerful marketing tool used in generating more sales in such a way that the products are marketed using existing customers' content such as product reviews and feedback to reach to more customers  with aid of advancement in information technology.

Most companies have social media pages online, where they engage existing customers in order that new prospects can also be reached with least possible costs implication overall,in other words,customer acquisition cost is kept low.

8 0
3 years ago
You would like to invest in one of the profitable business units of a multinational corporation. In a meeting with management, y
zubka84 [21]

Answer:

Unit A has revenue of $27 billion and a profit of $6 billion. While its product is based on a new technology that is rapidly increasing in sales, the product currently lags the market share of competitors.

Explanation:

According to the BCG Matrix, question marks are business units that operate in rapidly growing markets but currently only possess a low market share.

This results in a lot of cash being consumed by the business unit, but also the possibility of high growth. It is called a question mark because it is uncertain if the business unit will be successful or not. This means that they are very risky investments.

3 0
3 years ago
A compound transaction was recorded as follows: debit Equipment, $5,000; debit Cash, $1500; credit Accounts Payable, $3,500. Thi
butalik [34]
The trial balance would disagree. It seems that the cash should be credited instead as the situation seems to me that the cash is being expended to pay for the equipment, and the remaining 3500 is liabilities. Therefore, the error should be corrected.
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3 years ago
A market segment is a group of individuals or organizations who share one or more characteristics.
Anastaziya [24]

Answer: True

Explanation: A part of population having one or more characteristics, grouped together for the purpose of marketing is called market segmentation. Market segmentation population have two or more common characteristics.

Market segmentation can be done on various different basis like geography, age or gender etc.

Hence, from the above explanation we can conclude that the statement is true.

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