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Lostsunrise [7]
3 years ago
9

Assume that shareholder's required rate of return (r) is 9%. Dr. Pepper is expected to pay a dividend of $2.00 per share (D1) ne

xt year. Moreover, investors expect dividends to grow at a constant rate of 4% per year (g). According to the Dividend Discount Model, what should be the current price per share of Dr. Pepper?
Business
1 answer:
Juli2301 [7.4K]3 years ago
3 0

Answer:

P=$40

Explanation:

We will apply constant dividend growth model that is =P = D1 / ( k-g )

P is the price of share  ?

D1 is the current divided  $2

k is the rate of return       9%

G is the constant growth  4%

P=2/(9%-4%)

P=$40

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1. National Computers, Inc., was incorporated in Nebraska, has its main office in Kansas, and does business in Missouri. Nationa
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<u>National Computers, Inc., was incorporated in Nebraska, has its main office in Kansas, and does business in Missouri. National is subject to the jurisdiction of </u>( a)Nebraska, Kansas, and Missouri

Explanation:

<u>There are certain Jurisdiction Based on Real Property Ownership  which are limited and are termed as "in rem" jurisdiction</u>

A state( Kansas ,Missouri) has limited jurisdiction (which lawyers term as  "in rem" jurisdiction) over a non-resident person or business that owns real property in the state. The Jurisdiction  is limited in two ways:

  • Jurisdiction is applicable only to the fair market value of the real property. This means that if you sue a non-citizen who owns an business  worth $800,000, then in this case  ,your judgment can be worth is $800,000.
  • Also if , the claim  is  related to the property. For example, if you met an accident on the property of a non-resident owner of an business house, you could get jurisdiction over the owner. But you could probably not get jurisdiction over the non-resident owner if the lawsuit grows out of an entirely separate problem that has nothing to do with the apartment house.
4 0
3 years ago
What are the issues of integrity, ethics and law posed in the case study? What options does the woman have, and what should she
Dovator [93]

The integrity, ethics, and law issues raised in the case study are illegal and unethical conduct.

The woman must reject the economic proposal made by the company and maintain her complaint so that the executive is judged for what she did because she would avoid future harm to other employees.

<h3>What is ethics?  </h3>

Ethics is a term that refers to moral philosophy. This focuses on the study of human behavior based on right and wrong according to duty. Contemporary ethics is usually divided into three branches which are:

  • Metaethics studies the origin, nature, and meaning of ethical concepts.
  • Normative ethics seeks norms or standards to regulate human conduct.
  • Applied ethics examines specific ethical controversies.

According to the above, it can be inferred that the situation presented is an example of an unethical and illegal act because the company and the executive want to bribe the employee to prevent the executive from being removed from his position and the company from being judged for endorsing that conduct of the executive.

Note: The question is incomplete because the information is missing. Here is the complete information:

Case study 4

A woman is sexually harassed by a top-level senior executive in a large company. She sues the company, and during settlement discussions she is offered an extremely large monetary settlement. In the agreement, the woman is required to confirm that the executive did nothing wrong, and after the agreement is signed the woman is prohibited from discussing anything about the incident publicly. Before the date scheduled to sign the settlement agreement, the woman's lawyer mentions that she has heard the executive has done this before, and the settlement amount is very large because the company probably had a legal obligation to dismiss the executive previously. The company however wants to keep the executive because he is a big money maker for the company.

What are the issues of integrity, ethics and law posed in the case study? What options does the woman have, and what should she do and why?

Lecturer Guidelines

Some of the issues raised by this case study include initial issues of unethical and unlawful conduct, by the executive and the company; whether the company should allow the executive to continue working because of the revenue he generates, in view of his propensity to harm co-workers, and whether this action is ethical or reflects integrity; whether the company should require the woman to state that the executive did nothing wrong as part of the settlement agreement; whether the woman should agree to this settlement in view of the harm future employees are being exposed to; and whether the woman is prioritising justice for herself over harm to future employees in an acceptable way.

Learn more about ethics in: brainly.com/question/2630782

3 0
3 years ago
A bank can borrow or lend at LIBOR. Suppose that the six-month rate is 4% and the nine-month rate is 5%. The rate that can be lo
Svetlanka [38]

Answer: Interest rate from Banks

Explanation: The Opportunities open to the bank areas follows-1.Customers Visiting the bank for loans 2. This will encourage retained earnings for the bank. 3. The interest rate will increase the bank equities on the stock exchange market. 4. This will attract investment opportunities in other sectors for the bank.

4 0
3 years ago
Marx Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are
Misha Larkins [42]

Answer:

Effect on income= 7,500 increase

Explanation:

Giving the following information:

Variable costs are $0.50 per unit.

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Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.

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Variable cost= 15,000*0.5= (7,500)

Effect on income= 7,500 increase

5 0
3 years ago
Read 2 more answers
Compare the yield to maturity and the current yield. How do you explain this​ relationship?  ​(Select the best​ response.)A.If a
mamaluj [8]

Answer:

A - If a bond sells at a​ discount, the yield to maturity is greater than the current yield

Explanation:

Yield to maturity is the expected return if the bond is held till maturity. Current yiled is the return if the bond is sold today. There is an evident relationship between yield to maturity (TYM) and the current yield.  

“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).

According to the above statements, options C, B and D are eliminated. This leaves option A (If a bond sells at a discount, the yield to maturity is greater than the current yield) as the correct answer. This is true because YTM is calculated on purchase price rather than par value, if the purchase price is less than par value, the YTM will be greater than the current yield.  

7 0
3 years ago
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