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Readme [11.4K]
3 years ago
12

The Jameson Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% p

er year in the future. The company's beta is 1.15, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is Jameson's current stock price, P0?a. $18.62b. $19.08c. $19.56d. $20.05e. $20.55
Business
1 answer:
jok3333 [9.3K]3 years ago
5 0

Answer:

Current price of the stock of Jameson company is $18.62. Therefore, the correct option is A

Explanation:

The formula of required rate of return is:

Required rate of return = Risk free rate + Beta × Market risk premium

= 4% + 1.15 × 5%

= 4%  5.75%

= 9.75%

Computation of current stock price is:

Current stock price = Expected dividend per share / (Required rate of return - Growth in dividend)

= (0.75 + [5.50% × 0.75] ) / (0.0975 - 0.055)

= 0.79125 / 0.0425

= $18.62

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Answer:

$99,000

Explanation:

According to the scenario, computation of the given data are as follows,

         Net income  = $55,000

Add- Depreciation expense = $70,000

Less- prepaid rent = $50,000

Add- accounts payable = $11,000

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3 years ago
Lesley Torres is a project manager for the campaign​ "Action against Deforestation in​ Indonesia." She recently faced a glitch w
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Explanation:

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The controlling is one of the main function in the management as it ensure all the activities performed accurately and also helps in planning all the activities in an organization. It basically helps in meet the desirable goals of the company by setting a standard performance.

 Therefore, Option (A) is correct answer.

 

8 0
3 years ago
Moon Micro is a small manufacturer of servers that currently builds its entire product in Santa Clara, California. As the market
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Answer:

Answer for below mentioned points is in the attached image :

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3 years ago
As distribution manager, hassan is constantly gathering information about shipping rates, improvements in logistics analysis, an
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There are different kinds of roles in distribution. Hassan is playing the Monitor role.

<h3>What are the roles of a monitor? </h3>
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Monitors are given the powered to receive reports of any unfair practices and handle them as in the case with Hassan.

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2 years ago
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Answer:

Corporate cultures can hinder individuals in making the "right" decisions.-c.

6 0
3 years ago
Read 2 more answers
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