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galben [10]
3 years ago
14

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $8.50 per share and has announced that it w

ill increase the dividend by $6.50 per share for each of the next four years, and then never pay another dividend. Required: If you require a return of 16 percent on the company’s stock, how much will you pay for a share today
Business
1 answer:
Vadim26 [7]3 years ago
3 0

Answer:

The correct answer is $65.90 (approx.)

Explanation:

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

Dividend paid = $8.50

Increase dividend = $6.50 per year

Require return = 16%

We can calculate the current share price by using following method:

=[($8.5 + $6.5) ÷ (1 + 16%)^1] + [($8.5 + $6.5 + $6.5) ÷ ( 1 + 16%)^2] +[($8.5 + $6.5 + $6.5 + $6.5) ÷ (1+16%)^3] + [($8.5 + $6.5+ $6.5 + $6.5 + $6.5) ÷ (1+16%)^4

= $15 ÷ 1.16 + $21.5 ÷ 1.16^2 + 28 ÷ 1.16^3 + 34.5 ÷ 1.16^4

= $65.90 (approx.)

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Natali [406]

Answer:

Jack has claim while Jill didn't have.

Explanation:

Jack has claim against Deuce Hardware because his performance is tremendous and make more sales for the company. He done his work very well so he can claim against Deuce Hardware Supplies while on the other hand, Jill has no claim against Deuce Hardware because he commit a crime on the basis of which the company has the authority to terminate him from the job. He works very well in the company but his crime is big enough to terminate him.

5 0
3 years ago
Erin has been analyzing the manufacturing process for a local company and is starting to see some changes because of her suggest
galben [10]

Answer: six sigma; eliminate waste.

Explanation:

Here's the remainder of the question:

This scenario is an example of [budget review, Six Sigma, Total quality managment], a principle that is most likely being implemented to[eliminate waste,foster teamwork,exceed customer expectations].

The scenario discussed in the question is an example of six sigma. Six Sigma refers to a data driven method that is used in detecting defects and eliminating wastes. It helps organizations improve their business processes capability which is vital in the improvement of performance and the reduction in defects.

Six sigma also beings about improvement in the morales of the workers, and the improvement in profits.

7 0
3 years ago
Find the sum of 2x kg and 5x g. Give the answer in grammes.​
maksim [4K]

Answer: 3,600 g

Explanation:

7 0
3 years ago
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Aleks04 [339]

Answer: The correct answers are a) & b). That is MARTHA, MARTHA; JANE.

Explanation: Absolute advantage exists when a party can oroduce a highe quantity of a good or product. This is the situation with Martha in her productions.

Comparative advantage on the other hand is when a party has a lower opportunity cost. This exists in both the production of quilts and chocolate chip cookies.

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