Answer:
(a) $4.08
(b) $51.03
Explanation:
Constant growth rate for earnings:
= (EPS for any year ÷ EPS for the previous year) - 1
= (8.40 ÷ 8.00) - 1
= 0.05
= 5%
(a) EPS for 2016 = EPS for 2015 × (1 + 5%)
= 9.72 × 1.05
= $10.21
Dividend for 2016 = 40% × EPS for 2016
= 40% × 10.206
= $4.08
(b) Stock Price at the beginning of 2016:
= Dividend for 2016 ÷ (Required rate of return - Constant growth rate)
= 4.0824 ÷ (0.13 - 0.05)
= $51.03
The interest rate is 7%.
<u>Solution:</u>
The real rate of interest is always above the nominal interest rate when inflation is positive. In this case, we are told inflation is 3%. Since the real rate of return is the nominal interest rate minus inflation, we need a nominal interest rate of <u>5%+3%=8%</u> to get a real interest rate of 5%.
To calculate the real interest rate subtract the inflation rate from the nominal interest rate. Mathematically it looks like this The real interest rate is the nominal interest rate minus the inflation rate. Creeping inflation is a type of inflation in which the price level rises steadily at a moderate rate over an extended period of time.
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Answer:
Right now marcantuone and robert gieson ought not be held at risk for what the drycleaner inhabitants did.Because there was no release of perilous substance during their ownership.The chlorinated dissolvable pollution issue right now the aftereffect of dry cleaning activity led preceding the condemnee's acquisition of the property.There was no proof of a release of unsafe substance during the time of condemnee's ownership.The sullying was not found until after the condemner had procured the title to the property in the judgement activity.
As indicated by the spill demonstration the obligation is vested on a condemner who bought debased property and didn't attempt any assessment or examination at the hour of procurement.
Answer:
A. Medicine
Explanation:
Stress is a condition that affects the mental health of employees and is a challenge for human resources professionals in the workplace. Generally, work stress is caused by high workloads, pressure, conflicts, etc.
Therefore, it is necessary that HR be able to implement solutions to deal with stress in an organization, with the objective of maintaining the mental health and productivity of employees. For this, HR can use concepts from medicine, such as implementing health programs -being, improving physical fitness, labor gymnastics, etc. All of these concepts that promote well-being will assist in promoting a positive organizational culture and aimed at developing the skills and competences of each employee.
Answer:
a. is now lower than it was before, and so Hydro Grow is less likely to build the building.
Explanation:
The interest rate increase will reduce the net present value of the project as the lenders of fund will demand more interest and since the Weighted Average Cost of Capital of the project will increase. The increased WACC will cause the project to be more riskier and since the future benefit of the project will be reduced.
