The person or company that borrows money and signs a promissory note payable is the

Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm proj

Ostrovityanka [42]

Answer and Explanation:

Dividend = $1.2

Growth (g ) = 18%

Time = 4 year

Discount rate = rs = 15%

Based on the above information, the calculations are as follows

a) Expected Values is

Div 1 = Div 0 × (1 + g)

Div 1 = $1.2 × (1 + .18) = $1.42

Div 2 = $1.42 × (1 +.18) = $1.68

Div 3 = $1.68 × (1 + .18) = $1.98

Div 4 = $1.98 × (1 + .18) = $2.34

b) Expected Stock price 4 years from now, if given discount rate is 15%.

Div 5 = Div 4 × (1 + g)

= $2.34 × (1 + .03)

= $2.41

Now 4 year price is

= Div 5 ÷ (Rs - g)

= $2.41 ÷ (.15 - .03)

= $2.41 ÷ .12

= $20.083

c) Today stock Price is

= [PVF15%,1 × DIV 1] + [PVF15%,2 × DIV 2] + [PVF15%,3 × DIV 3] + [PVF15%,4 × DIV 4] + [PVF15%,4 × TV]

where,

Present Value Factor (PVF) =1 ÷ (1 + r)^n

= [0.08695 × $1.42] + [0.7561 × $1.68] + [0.6575 × $1.98] + [0.5718 × $2.34] +[0.5718 × $20.083]

= $0.123 + $1.270 + $1.301 + $1.338 + $11.483

= $15.515 per share

d) Dividend Yield is

= Div 1 ÷ Price

=$1.42 ÷ $15.515

= 0.0915 or 9.15%

e) Next Year Stock Price is

=[PVF15%,1 × DIV 2] + [PVF15%,2 × DIV 3] + [PVF15%,3 × DIV 4] + [PVF15%,3 × TV]

=[0.08695 × $1.68] + [0.7561 × $1.98] + [0.6575 × $2.34] + [0.6575 × $20.083]

= $0.146 + $1.4971 + $1.5386 + $13.205

= $16.387 per share

f) Expected Rate of Return is

= [P1 - P0 + D1] ÷ P

= [$16.387 - $15.515 + 1.42] ÷ $15.515

= 0.14771 or 14.77%

8 0

4 years ago

The _____is a personality assessment model that taps basic dimensions encompassing most of the significant variation in human pe

Vitek1552 [10]

Answer:

Big Five model

Explanation:

The Big Five model also known as the Five Factor Model (FFM) or Ocean or Canoe model is a way of grouping human behavior/traits. This behavior or traits are subject to relationship between words.

The Ocean or Canoe (OCEAN/CANOE) abbreviation is a combination of the first letters of the words of the the five(big five) traits.

Openness to experience, Conscientiousness, Extroversion, Agreeableness, emotional stability(Neuroticism). It can also be rearranged to form CANOE as well.

This five traits are also affected by the upbringing or family cultures as well. Anyone described with any of the above word is most likely to have attributes that exemplify the meaning of the words.

I hope this helps.

4 0

4 years ago

Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated

sleet_krkn [62]

Answer: option (A). flexible manufacturing systems, re-engineering, and total quality management.

Explanation: Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated strategy. These are :- Flexible Manufacturing Systems, Reengineering, and Total Quality Management.

6 0

3 years ago

The Baldwin's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automati

Arada [10]

Answer:

The correct answer is 84700

Explanation:

The Recruitment cost of the Baldwin's workforce can be calculated as follows. Total employee last year = 434+67= 501 Number of employees this year = 501*(1+10%) = 551 Increase in employee = 50 Amount spend on recruitment = 50*1694 = 84700 For every item, if your calendars are not exactly or equivalent to the first Shift Capacity, your labourers might be utilized on a first Shift.

Specialists are relegated to second move simply after the generation plan can't be met on first move. The level of specialists that left the organization a year ago, barring scaling back.

5 0

3 years ago

The common stock of CTI has an expected return of 14.48 percent. The return on the market is 11.6 percent and the risk-free rate

Bezzdna [24]

Answer:

1.35

Explanation:

Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

14.48 = 3.42 + b(11.6 - 3.42)

14.48 = 3.42 + b8.18

14.48 - 3.42 = 8.18b

11.06/8.18 = 1.35

5 0

3 years ago