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RoseWind [281]
3 years ago
11

​Bolwork Inc. is expected to pay a dividend of $5 per share next year. Bolwork's dividends are expected to grow by 3 percent ann

ually. The required rate of return for Bolwork stock is 15 percent. Based on the dividend discount model, a fair value for Bolwork stock is $____ per share.
Business
1 answer:
lesya692 [45]3 years ago
4 0

Answer:

fair value for Bolwork stock is $0.4166

Explanation:

given data

dividend = $5 per share

grow rate  = 3 %

required return = 15 %

to find out

fair value for Bolwork stock

solution

we will apply here stock price formula that is

stock price = dividend / required return - growth rate

put all these value we get

stock price = dividend / required return - growth rate

stock price = 5 / 15 - 3

stock price = 5 / 12

stock price is = 0.4166

fair value for Bolwork stock is $0.4166

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Answer:

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4 0
3 years ago
"In employees decide how motivated they are by evaluating the likelihood that their effort will produce a certain level of perfo
kobusy [5.1K]

Answer:

Vroom's expectancy theory

Explanation:

Vroom's Expectancy theory states that three factors determine how motivated people will be. They are; expectancy, valence and instrumentality.

Expectancy is how employees expect they will perform or the effort they will have to put in to produce a certain level of performance.

Instrumentality relates to the belief that performance will achieve the required results and yield certain rewards.

Valence refers to how much employees value the rewards they receive.

4 0
3 years ago
Given the following demand and supply equations determine the market equilibrium price and quantity. QD=30-3p. As=10-5p. Where Q
pochemuha

Answer:

Equilibrium price, p = 2.5

Equilibrium Quantity, Q = 22.5

Explanation:

The equation is:

Qd = 30 - 3p

Qs = 10 + 5p

At equilibrium, Quantity demanded equals quantity supplied

Equate Qd = Qs to find equilibrium price

30 - 3p = 10 + 5p

30 - 10 = 5p + 3p

20 = 8p

p = 20/8

P = 2.5

Substitute equilibrium price into Qd and Qs equation to find equilibrium Quantity

Qd = 30 - 3p

= 30 - 3(2.5)

= 30 - 7.5

= 22.5

Qs = 10 + 5p

= 10 + 5(2.5)

= 10 + 12.5

= 22.5

Therefore,

Equilibrium price, p = 2.5

Equilibrium Quantity, Q = 22.5

4 0
3 years ago
Lewis is the manager of the marketing department at his company. Some of his colleagues are also his friends. Lewis often lets h
pshichka [43]

Answer: Justice.

Explanation:

Justice is not being totally applied by Lewis in controlling the marketing department, as he uses different controlling technique for his friends and a harsher control technique for others. For Lewis to be just, he has to apply same controlling techniques for all workers.

3 0
3 years ago
North Around, Inc. stock is expected to return 22 percent in a boom, 13 percent in a normal economy, and −15 percent in a recess
almond37 [142]

Answer:

4.53%

Explanation:

Data provided in the question:

Expected return = ∑ (Return × probability)

Thus,

Expected return = (0.06 × 22) + (0.92 × 13) + (0.02 × (-15))

= 12.98%

Now,

Probability       Return        Probability × (Return-Expected Return)²

0.06                  22                   0.06 × (22% - 12.98%)² = 4.8816

0.92                  13                    0.92 × (13% - 12.98%)² = 0.000368

0.02                  -15                   0.02 × (-15% - 12.98%)² = 5.657608

========================================================

                                                                            Total = 20.5396%

Standard deviation = \sqrt{\frac{\text{Total probability}\times(\text{Return-Expected Return})^2}{\text{Total probability}}

= √(20.5396)

= 4.53%

6 0
3 years ago
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