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katrin2010 [14]
3 years ago
7

Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances

during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out in equal quarterly installments to its shareholders. a. Suppose a company currently pays an annual dividend of $4.00 on its common stock in a single annual installment, and management plans on raising this dividend by 5 percent per year indefinitely. If the required return on this stock is 15 percent, what is the current share price?
Business
2 answers:
Ugo [173]3 years ago
8 0

Answer:

$42

Explanation:

. Suppose a company currently pays an annual dividend of $4.00 on its common stock in a single annual installment, and management plans on raising this dividend by 5 percent per year indefinitely. If the required return on this stock is 15 percent, what is the current share price?

a)  dividend growth model, is given as

Price = D1 / (r - g) = D0 x (1 + g) / (r - g)

D0=Dividend, $4

g=percentage increase of the dividend

r=return on stock

= 4 x 1.05 / (15% - 5%)

= $42

Current share price will be  $42

user100 [1]3 years ago
5 0

Answer:

The DDM tells us that share price = D*(1+G)/R-G

Dividend = 4.00

G= 0.05

R= 0.15

Price = 4*(1.05)/0.15-0.05

Price= $42

Explanation:

We use the dividend discount method to estimate the current price. We use the growth rate and required return to figure out the current price by using the DDM formula.

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With practical illustration, how can managers leverage on organizational behavior components to maximize business success
densk [106]

Explanation:

The study of organizational behavior in a company can be beneficial for managers to optimize people management practices.

The attitudes of employees in an organization are responsible for creating an organizational climate focused on harmony and ethics, so it is necessary for managers to know the profile and motivations of employees, to develop strategies that will help in creating a favorable organizational culture. the development of skills and abilities.

Knowing organizational human capital is extremely necessary to analyze how employees communicate individually and in teams, in order to develop tactics that maximize their potential and keep them motivated and engaged, so that there is integration and increased employee productivity, an essential factor for assist in business maximization and success.

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3 years ago
Leona bought two different brands of wine from vineyards in Australia. When asked for her opinion about the wines, she said that
Diano4ka-milaya [45]

Answer:

C. <u>Post purchase</u><u> </u><u>behavior</u>

Explanation:

Whenever a consumer buys a product, he/she undergoes various stages between the creation of need/want and the ultimate purchase decision.

5 stages have been stated under Consumer buying decision, namely,

  1. Need recognition : the foremost stage wherein a need or desire arises.
  2. Information search: Here, the consumer searches for information w.r.t how the need or want can be satisfied.
  3. Evaluation of alternatives: The stage wherein a consumer weighs pros and cons of all available alternatives which can satisfy the need.
  4. Purchase: The stage wherein a consumer finally purchases a product.
  5. Post purchase behavior : Here, the consumer evaluates his purchase and reviews his purchase decision.

In the given case, the customer already bought both the wines. Her opinion regarding superiority of quality and taste between the two, represents her post buying stage of purchase decision and her review of the viability of purchase decision.

8 0
3 years ago
Corporations have limited liability, but lose ultimate control of corporate assets to the ______________ ..
Vinil7 [7]

Answer:

Stockholders

Explanation:

Stockholders are the owners of a company.  As owners , stockholders have voting rights in the company.  Shareholder elects directors who represent them on the board of directors. Each share is equivalent to one vote.  The board members recruit top management of the company. The board provides policy guidelines, makes critical decisions, and supervises senior management.

By electing board members, shareholders influence the management of the business. Should the stockholders be unhappy with the way the company is being managed, they can vote out the current director and elect new ones. The new directors then appoint fresh managers. In this way, shareholders maintain control of the assets of the company and its assets.

5 0
3 years ago
Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia.
Scilla [17]

The production possibility table shows that in Latalia the domestic real cost of 1 ton of pork is C. 5 tons of beans.

<h3>What is production?</h3>

It should be noted that production simply means the creation of goods and services for consumers.

In this case, production possibility table shows that in Latalia the domestic real cost of 1 ton of pork is 5 tons of beans. This is because 5 tons of beans will be sacrificed to produce the pork.

Learn more about production on:

brainly.com/question/16755022

5 0
2 years ago
A risk of marketing myopia is that sellers pay more attention to
vitfil [10]

The correct answer is:   [D]:

________________________________________________

        " their products than to customer needs. "

________________________________________________

Hope this helps!

        Best wishes!

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5 0
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