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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.

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valentina is observing interactions between subordinates and their supervisors in a large corporate office. valentina is using a
andrew11 [14]

Valentina is using a research strategy called:<u> naturalistic observation.</u>

<u></u>

<h3>What you mean by naturalistic observation?</h3>

Naturalistic observation is a research method where you record and mention  the behaviors of your research subjects in real world settings. You should  avoid interfering with or influencing any variables in a naturalistic observation. You can imagine  of naturalistic observation as “people watching” with a purpose.

<h3>Why is naturalistic observation important?</h3>

An importance  of naturalistic observation is that it permits  the investigators to directly observed the subject in a natural setting. The method provides  scientists a first-hand look at social behavior and can aid  them  to notice things that might never have encountered in a lab setting.

Learn more about naturalistic observation:

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5 0
1 year ago
True or False: Increasing the number of stocks in a portfolio reduces market risk.
AnnZ [28]

Answer:

Q1 True

Q2 More volatile

Q3 Pherk, Airing, Goohoo, Shexxon

Explanation:

Q1 The reason is that the greater the number of stock in the portfolio the lower is the unsystematic risk associated with the investment because the investor receives an average portfolio of investment.

Q2 The greater are the number of the investments in different stocks the lower are the chances of vulnerability. This means that Portfolio A consist lower number of investments than portfolio B in different companies which means that the return on the portfolio A will be more volatile than portfolio B.

Q3 The investments in different industries is more diversified than the investment made in similar industry. The Pherk, Airing, Goohoo and Shexxon are four different industries which means that the investment in such companies is more diversified than other investments in similar industries.

6 0
4 years ago
Malcolm, an accounts clerk, is all set to make a presentation on how his team can improve their productivity by changing certain
Serga [27]

Answer and Explanation: From the following given case or scenario, we can state that the manager is most likely to said the given because he/she thought that <em>being too critical might put Malcolm on the defensive  end and thus hamper his social skills and creativity</em>. Here, in this case the manager asks the other employees not to have a critical review of Malcolm's suggestion and to avoid having an argument on his suggestion.

8 0
3 years ago
An app advertiser would want to use a third-party tracking company to:
exis [7]
They would do this because the market for this demands that many different advertisers use different networks to engage users.  The third party would use one ad instead of multiple, and then communicate with each network behind the scene to inform advertisers which data come from which network
4 0
4 years ago
Brief Exercise 5-8 Cullumber Company has a unit selling price of $630, variable costs per unit of $300, and fixed costs of $327,
IRISSAK [1]

Answer:

(a)

Mathematical Equation for break-even

F = QP - QV

Where

F = fixed cost

Q = Break-even quantity

P = Selling price

V = Variable cost

F = Q ( P - V )

Q = F / ( P - V )

Q = $327,030 / ( $630 - $300 )

Q = $327,030 / $330

Q = 991 units

(b)

Contribution Margin = Price per unit - Variable cost per unit

Contribution Margin = $630 - $300 = $330

Break-even Point in Units = Fixed Cost / Contribution margin per unit

Break-even Point in Units = $327,030 / $330 = 991 units

Explanation:

Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.

Contribution per unit method use the contribution of each unit to calculate the break-even point.

5 0
3 years ago
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