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BaLLatris [955]
3 years ago
7

he next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4.

5 percent forever. If the stock currently sells for $37 per share, what is the required return?
Business
1 answer:
Elan Coil [88]3 years ago
8 0

Answer:

The Required Return is 10.82%.

Explanation:

The Dividends Model for the Constant Growth is given below:

                                          P0 = D1 / (Ke - g)

Arranging the above equation for "Ke", that is the Required Return:

                                      ⇒ Ke = (D1 / P0) + g

Putting Values and we get:

Required Return = Ke = (2.34 / 37) + .045 = .1082 = 10.82%.

Thanks!

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Make a list of the skills that would be important for someone pursuing a career in each cluster in your unit. Then compare to se
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Answer:

Employability.

Ethics.

Systems.

Teamwork.

Career development.

Problem solving.

Critical thinking.

Information technology application.

Explanation:

3 0
3 years ago
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Thailand has a comparative advantage in rice and an absolute advantage in cell phones Indonesia has a comparative advantage in c
Aleonysh [2.5K]

Answer:

d. Thailand should export rice and import cell phones

Explanation:

Analyzing the question, it is correct to say that Thailand should export rice and import cell phones.

To understand why this statement is correct, we need to understand the concept of comparative advantage and absolute advantage.

The comparative advantage occurs when a country has great efficiency in producing a certain good, that is, the production is specialized and therefore advantageous in relation to another country. So it is correct to say that Thailand, having a comparative advantage in rice, should export rice to achieve greater economic advantage.

The absolute advantage, on the other hand, corresponds to the production of a good with lower costs than another country, but Thailand should import cell phones because Indonesia has a comparative advantage in cell phones, which makes it more competitive than Thailand in this segment.

3 0
2 years ago
After identifying the purpose of your message, you should select the most appropriate communication channel. When determining th
Varvara68 [4.7K]

For an effective communication to take place the selection of the most appropriate channel ( medium for convening information) for the intended audience is very important

Explanation:

The factors that are important in the determination of  the most appropriate channel/Medium for  communication are:

  • Urgency of the message(Importance of the message)
  • Confidentiality of the message and the medium
  • Record(The business communication needs to be recorded)
  • Cost incurred in sending the message
  • Supporting Technology
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When determining the most effective channel for the  message,one should initially consider the importance of the message.

6 0
3 years ago
Money that can be easily divided into smaller units of value has the characteristics of
Anna007 [38]
A) Divisibility can easily be divided into smaller value.
8 0
3 years ago
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Dean's Coffee Shop makes a blend that is a mixture of two types of coffee. Type A coffee costs Deon $4.75 per pound, and type B
sergiy2304 [10]

Answer:

type B 50 pounds

type A 94 pounds

Explanation:

First we construct the equation system:

\left \{ {{A_q + B_q = 144} \atop {4.75A_q + 5.9B_q = 741.5}} \right. \\

Now we clear one and replace:

A_q = 144 - B_q\\4.75A_q + 5.9B_q = 741.5\\4.75(144 - B_q) + 5.9B_q = 741.5

And we can solve for type B:

4.75\times 144 - 4.75B_q + 5.9B_q = 741.5\\1.15B_q = 741.5 - 684\\B_q = 57.5 / 1.15 = 50

And now we can solve for quantity of A as well:

A = 144 - 50 = 94

<u>Finally we can check the answer if it is correct:</u>

50 x 5.9 + 94 X 4.75 =

   295       +      446,5‬   = 741,5‬

5 0
3 years ago
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