Chets comment about Drews behavior shows that Drew is an unreliable character.
Answer:
The dividend in the upcoming year should be $2.40
Explanation:
Given:
EPS(Earnings Per Share) = $8
Expected ROE(return on equity) = 18%
Appropriate required return = 14%
Plowback ratio = 70%
Required:
Find the dividend
To find the dividend, we need to first calculate the dividend payout ratio.
To find the dividend payout ratio, use the formula below:
Dividend payout ratio = 1 - plowback ratio
= 1 - 0.70
= 0.30 ≈ 30%
The dividend payout ratio is 30%
Therefore, the dividend for the upcoming year would be calculated using the formula below:
Upcoming dividend = upcoming EPS × dividend payout ratio
= $8 × 30%
= $2.4
The dividend in the upcoming year should be $2.4
Answer:
The correct answers that fills the gaps are: horizontal; increase market power.
Explanation:
Horizontal acquisition refers when the company acquires another from the same sector. In this case, both companies belonged to the same sector (telecommunications). The purpose, generally, was to increase the market share in the sector, also eliminating an important company from the competition.
Answer:
A. The World of trade
Explanation:
The marketplace is an economic system where companies compete with each other in order to sell their products. It is a place where trade occurs. In the broadest terms, a marketplace is the world of trade where buying of goods and services takes place.
Answer:
(B) A reduction in risk
Explanation:
Diversification is necessary for investing. In this case, you invest your capital in different investments and you do not need to rely on a single investment for your returns and this also helps to reduce capital lost. Among saving your capital and receiving returns, reduction of capital loss is the primary benefit of diversification. If you invest your capital in one investment and the return is low or there is a poor performance, another investment might generate high returns over the same period of time and your capital loss is reduced.
