1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maksim231197 [3]
3 years ago
12

Knox Inc. is deciding between the two dividend payment plans below: Year Plan A Plan B 1$3.00$0.50 2$3.05$1.75 3$3.10$3.25 4$3.1

5$6.80 Stockholders are expected to discount Plan A by 15% and Plan B by 10%. Based upon the present value of the future dividends, which plan will the stockholders prefer?
Business
1 answer:
maks197457 [2]3 years ago
6 0

Plan B will be preferred

<u>Explanation:</u>

<u>year     Plan A           Discount (15%) Present value </u>

1        $3                   0.8695           $2.3085

2     $3.05                   0.7561           $2.306105

3      $3.10                      0.6575     $2.03825

4    $3.15                     0.5718           $1.80117

 total                                         $8.754025

<u>Year Plan B Discount (10%) Present value </u>

1        $0.5                0.9090         0.4545

2        $1.75      0.8264          1.4462

3       $3.25        0.7513       2.4417

4       $6.80          0.6230      4.644

         total                                  $8.9870

Thus, from the above calculation, it is clear that investment in plan B will be more fruitful as it will yield more amount of money as has been calculated by present value method.

You might be interested in
Which of the following is a correct statement about promoting energy conservation?
Paladinen [302]

Answer:

we need to know what the options are

Explanation:

4 0
2 years ago
The _____ stage of the Change Management Continuum Model demonstrates a positive impact on the organization.A. internalizationB.
gladu [14]

Answer:

The correct answer to the following question will be Option C (Adoption).

Explanation:

The adoption stage falls under the Change Management Continuum System educational process. This explains the change which has shown a significant or positive impact on the corporation.

The mental process by which a person moves from the first hearing about such an invention to actual adoption is the acceptance process for either a new product.

There are five stages are in the Adoption stage:

  • Product awareness
  • Product interest
  • Product evaluation
  • Product trial
  • Product adoption

Therefore, Option C is the right answer.

3 0
3 years ago
Why does the cost of capital constitute a direct link between return on capital expenditure and the returns required by capital
Vinil7 [7]

Answer:

The overview of the statement is summarized below.

Explanation:

  • The capital structure seems to be the ratio of net required by investors toward about there capital expenditure. Investment return capital spending seems to be the return rate required for expenditure.
  • Returns required by financial institutions are much worse than the amount of capital, even before investors necessitate a reasonable level of profitability.
3 0
3 years ago
X Company is preparing its IPO prospectus and is informed by its attorneys that the company needs to discuss the board's role in
Rom4ik [11]

<u>Answer: </u>This discuss would be best placed within the section of the prospectus known as the management section.

<u>Explanation:</u>

The management section in the prospectus has the information regarding the management team biography and the key people in the company. The board's role in risk oversight is through developing policies to build strategies that are consistent with risk ability of the X Company.

Enterprise risk management is a strategy that helps is preventing the company from any hazards. ERM has its effect on the operations of the company so the Board plays a major role in managing ERM.

3 0
3 years ago
Aspen Integrated Marketing used to have a strict hierarchical structure, with the information given only to those who required i
Dennis_Churaev [7]

Answer: d. open-book management.

Explanation:

OPEN-BOOK MANAGEMENT is a style of management where employees are given financial information on the company to help them perform better.

The concept is rooted in a theory that workers tend to have more motivation and be more productive when they feel as though they are being treated like Business partners who are usually the ones with access to such data as opposed to employees who usually do not.

5 0
3 years ago
Other questions:
  • Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 201
    11·1 answer
  • As you move through your professional career, you will receive requests for favors and contributions. You will not be able to ho
    7·1 answer
  • What is fringe benefit?​
    8·2 answers
  • X-Tel budgets sales of $70,000 for April, $120,000 for May, and $80,000 for June. In addition, sales commissions are 10% of sale
    9·1 answer
  • Fullerton Waste Management purchased land and a warehouse for $720,000. In addition to the purchase price, Fullerton made the fo
    12·1 answer
  • Adjustments for physical characteristics are intended to capture the dimensions in which a comparable property differs physicall
    7·1 answer
  • In Russia, suppose GDP per capita grows by 9.0 % per year for 31 years . By how many times does this economy grow?
    7·1 answer
  • Giving away points <br> Come quick
    5·2 answers
  • Ted Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash fl
    11·1 answer
  • What is an economic indicator and why is it important? Use at least two complete sentences to provide your response.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!