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german
3 years ago
10

Nachman Industries just paid a dividend of D 0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10%

in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?
Business
1 answer:
xxTIMURxx [149]3 years ago
3 0

Answer:

45.011

Explanation:

The current market value of a share is  the present value of future dividends in perpetuity, discounted at the cost of  equity (i.e. the return required by the providers of equity capital).

Based on the above discussion the share price shall be calculated as:

Present value of year 1 dividend=1.72(1+9%)^-1=1.58

(1.32*1.30=1.72)

Present value of year 2 dividend=1.89(1+9%)^-2=1.591

(1.72*1.10=1.89)

Present value of year 3 dividend=1.98(1+5%)^-3=1.71

(1.89*1.05=1.98)

Present value of all dividends after year 3=(d(1+g)/ke-g)(1+ke)^-3=(1.98(1+5%)/9%-5%)(1+9%)^-3=40.13

Current market value of share=45.011

(1.58+1.591+1.71+40.13)

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Discuss the rationale of organizing an industrial strike in resolving employee dispute with the state, focusing on the detriment
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Answer: The answer is provided below.

Explanation:

Strike is a refusal to work organized by body of employees as a way of protesting typically in an attempt to gain concessions from their employer.

Causes of strike include demand for leave with pay, pay increase,health hazards in the workplace, inadequate working tools, excessive working hours; low wages, discrimination, and aggressive behaviour of the managers towards employees.

Eben though there are potential benefits from strikes, like improved labor productivity, better work morale, or lower absenteeism, strike action brings about economic costs which can be high, depending on the duration, number of workers involved and also the divisions affected.

Strikes results in negative impacts on the employees, the employers, their stakeholders, consumers, the government, and the economy.

Furthermore, it also affects the international trade as it can hinder the economic development of a country and create great economic uncertainty especially when the global media continues to share details, videos and images of violence, damage to property and clashes between strikers and security.

5 0
3 years ago
The Board of Directors for TundraPro, Inc., is searching for a new CEO. The firm is in need of new direction after suffering sev
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Answer:

The answer to the Board of Directors for TundraPro for a new CEO is the letter B. high emotional intelligence.

Explanation:

For the new CEO to be a transformational leader, the Board needs to identify candidates who have high emotional intelligence, as people with high emotional intelligence are generally practical, empathetic, and have positive vision with dominated emotions and a lot of curiosity. These people are constantly developing and increasingly improving their results.

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3 years ago
Coffee shops that reward customers with one free cup of coffee after every ten coffee purchases are using a ___________ reinforc
sergiy2304 [10]

fixed-ratio, the discount is fixed ( a free coffee) and the number of cofees is fixed 10

6 0
3 years ago
Tristan transfers property with a tax basis of $900 and a fair market value of $1,200 to a corporation in exchange for stock wit
nataly862011 [7]

Answer:

Option B is correct.

Corporation tax basis in the property received= $1,100

Explanation:

Option B is correct.

Corporation tax basis in the property received is calculated by adding the tristan transfers property with a tax basis of $900 and $200 which is the profit/gain tristan got.

Corporation tax basis in the property received=tristan transfers property with a tax basis + Gain Received

Corporation tax basis in the property received= $900 + $200

Corporation tax basis in the property received= $1,100

8 0
3 years ago
The 1990s was a period of rapid economic growth and a robust stock market that yielded an average annual return of 18.6%! If you
AlekseyPX

Answer:

$5,506.14

Explanation:

In calculating the value of your investment at the end of the decade, we will use the formula below

A = P [1 + (R / 100)]^n

A = Total investment amount at the end of the decade, P = Principal amount invested, R = Annual interest rate in percentage, and N = Years

P = 1,000 , R = 18.6%, N = 10

A = $1,000 *(1 + 18.6%)^10

A = $1,000 *(1+0.186)^10

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A = $1,000*5.506135

A = $5506.135

A = $5,506.14

Hence, the value of the investment at the end of the decade will be $5,506.14

7 0
3 years ago
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