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docker41 [41]
3 years ago
8

Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.05 at the end of the year. Its div

idend is expected to grow at a constant rate of 6.50% per year. If Walter’s stock currently trades for $28.00 per share, what is the expected rate of return?
Business
1 answer:
Sonja [21]3 years ago
4 0

Answer:

The expected rate of return is 14.29%.

Explanation:

The re-arranged equation of DDM for Expected Rate of Return is given below:

Expected Rate = (Next Year Dividend / Current Stock Price) + Growth Rate

where

Next Year Dividend is Current Year Dividend * (1 + growth rate)

⇒ Next Year Dividend = 2.05 * (1 + 6.50%) = $2.18.

All the other values are given in the question. Simply put those values in the equation:

⇒ Expected Rate of Return = (2.18 /28) + .065 = .1429 = 14.29%.

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In 1969, Malcolm bought a Pontiac Firebird for $2,500. If the price index was 36.7 in 1969 and the price index was 235 in 2013,
Ilya [14]

Answer:

Option (d) $16,008.17

Explanation:

Data provided in the question:

The price of the Firebird in 1969 = $2,500

Price index in 1969 = 36.7

Price index in 2013 = 235

Now,

The price of the Firebird in 2013 dollars will be

= [ Price index in 2013 ÷ Price index in 1969 ] × The price of the Firebird in 1969

= [ 235 ÷ 36.7 ] × $2,500

= 6.40327 × $2,500

= $16,008.17

Hence,

Option (d) $16,008.17

6 0
3 years ago
What are the three most critical components that a marketer needs to examine to segment a market effectively?
Georgia [21]
1. Identifiability (and measurability)
2. Accessibility
3. Responsiveness

1. Identifiability
    - the target market must be identifiable to determine which of the
      consumers belong to the segment. The target market must be well-
      defined and measurable, particularly in terms of population, income, and
      age bracket. 

2. Accessibility
    - this refers to the ease of reaching the identified market segment in terms
      of geography and economy with appropriate market strategies. 

3. Responsiveness
    - the target market should be evaluated if they will respond (i.e. purchase)
      the products and services created for them. There is little point in
      identifying a market, creating a product, and developing marketing
      strategies if the consumers themselves see little value in what is being
      offered to them. Thus, the products and services must meed the
      consumers' or organizations' needs. 
4 0
4 years ago
The human resource department of Winston Memorial Hospital has played a leading role in helping the hospital become a high-perfo
sesenic [268]

Answer:

Letter b is correct. <em>Making sure employees know how their work contributes to the hospital's mission</em>

Explanation:

Performance management is characterized as a set of techniques and practices that together will help to verify the performance of organizational activities and their effectiveness. Its main function is to ensure that the proposed organizational objectives are met. Employees are a key player in organizational performance, so giving them feedback on their performance is important for communication to be effective and for a sense of staff to increase, and consequently their productivity to increase.

8 0
3 years ago
Brian is the 99% shareholder, president, and director of Arapine Corp. He frequently uses the corporation credit card for his pe
Alika [10]

Answer: (C) Brian is liable because the court will pierce the corporate veil.

Explanation:

The phrase "PIERCING THE CORPORATE VEIL" is used to describe a situation where a Court decides to hold Corporate Shareholders and/or LLC Owners personally liable for the liabilities of a corporation.

When individuals act in a way that does not separate them from the company (dissolving this 'veil'), the Court looks upon this seriously and treats it in kind. Some instances of this happening are, failure to keep business and personal funds separate and diverting business assets for personal use without proper documentation as Brian seems to have done.

For this reason, the Court will very much likely Pierce the veil.

If you need any clarification do react or comment.

6 0
4 years ago
Is disease prevention by the government a pure public good or a private good? Explain
Lynna [10]
Public good are non-rivalry and non-excludable goods. People can benefit these goods without affecting and reducing its availability to others. Disease prevention by the government is purely public good since it is important to every individual and each person must not have any limitations in receiving these kind of prevention.
4 0
3 years ago
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