Answer:
The price of Apple just after the current dividend was paid is $26.79.
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 10 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $3
Total of dividends from year 1 to year 10 = $19.17617169980840
Year 10 dividend = $7.781227380
Therefore, we have:
Year 11 dividend = Year 10 dividend * (100% + Perpetual dividend growth rate) = $7.781227380 * (100% + 3%) = $8.0146642014
Price at year 10 = Year 11 dividend / (Rate of return - Perpetual dividend growth rate) = $8.0146642014 / (20% - 3%) = $47.1450835376471
PV of price at year 10 = Price at year 10 / (100% + Required return)^Number of years = $47.1450835376471 / (100% + 20%)^10 = $7.61419419713817
Price of Apple = Total of dividends from year 1 to year 8 + PV of price at year 10 = $19.17617169980840 + $7.61419419713817 = $26.79
Answer:
“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”
Explanation:
The Paid-up value of Preferred Shares = $100,000 [1,000 Shares x $100]
The Amount of Preferred Dividend per year = $8,000 [$100,000 x 8%]
The amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year
= Cumulative Preferred Dividends payable for the 2 years + Current Year Dividend
= [$8,000 x 2 Years] + $8,000
= $16,000 + 8,000
= $24,000
“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”
Answer:
$128,787.07
Explanation:
Initial investment = $2.32 million = $2,320,000
Depreciation = investment ÷ Useful life
= $2,320,000 ÷ 3
= $773,333.33
Operating cash flows from year 1 to year 3
= [ ( Sales - Costs - Depreciation ) × (1 - tax) ] + Depreciation
= [ ( $1,735,000 - $650,000 - $773,333.33 ) × (1 - 0.21) ] + $773,333.33
= 1019549.99 ≈ 1,019,550
Thus,
NPV = Present value of cash inflows - Present value of cash outflows
Also,
Initial investment = 
- 2,320,000
or
NPV = $128,787.07
<u>When using survey feedback activities Managers analyze survey data to solve problems</u>
Explanation:
- A survey is a tool/technique adopted by management to encourage dialogue among the members of an organization.
- When the organization decide to conducts an employee survey, it is basically entering into a social contract with employees to provide feedback.
Feedback is exchanged for management consideration and action.
When employees provide information through survey, they expect that management will listen/hear their input and use the information to solve their problem.
<u>So it is appropriate to say that through survey feedback activities Managers analyze survey data to solve problems</u>
<u>Explanation:</u>
a. Formerly, these manufacturers have to provide storage space to display their inventory of mattresses, however, online retail sellers have taken up this activity by holding the various sizes of the available inventory, and then simply display them on photos/videos on their website.
b. No. The decision to purchase a car direct from the manufacturer without seeing the product in person or testing the product isn't the most preferred option for many, however, an expensive refrigerator could be purchased without seeing or testing it out. Usually, the following factors are considered:
- Would this product match the description stated?
- Would the cost of return be worth it if there happens to be a problem with the product?
