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Roman55 [17]
4 years ago
15

will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by

0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent?
Business
1 answer:
snow_tiger [21]4 years ago
5 0

Answer:

= $19.57

Explanation:

Price of the stock (P0) = Div1 / (r-g)

Div1 = next year's dividend = $2.25

r = required return = 12.25% or 0.1225 as a decimal

g = growth rate = 0.75% or 0.0075 as a decimal

Next, plug in the numbers to the formula;

Price (P0) = 2.25/ (0.1225 -0.0075)

Price (P0) = 2.25 / 0.115

= $19.57

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Despite its drastic downsizing a decade ago under a federally funded bailout and bankruptcy​ restructuring, General Motors again
zalisa [80]

Answer:

The question is actually missing (see attached image):

the answer is:

D. Less than that of its competitors.

Explanation:

Personally, I believe that GM is an extremely spoiled child that refuses to assume responsibility for its continuous and never ending mistakes. GM has either filed for bankruptcy or threatened to do so twice in the last 30 years or so, and every time the US government has to bail them out. But GM keeps doing things wrong.

It doesn't matter if you like their cars or not, GM is terribly managed. No other company in US history has received so much financial aid from the government and continued to lose money and work inefficiently. The problem is that whenever things go wrong, stockholders lose their money but the executives keep getting tens of millions of dollars. If a company is managed in such a disastrous way, their top management shouldn't get paid that much.

A car factory costs a lot of money, and not using it efficiently is outrageous considering GM's history. If they had never received a cent from the government, then its only their problem. But the government lost $11.2 billion on GM's last bailout. During the 1980s GM lobbied fro the government to impose import quotas on Japanese cars because they were better cars and GM couldn't compete against them. So whenever they do things wrong, big brother has to help them. During the last couple of years GM had to sell most of its foreign operations in order to get cash, and you generally do not make money by selling your assets.

6 0
3 years ago
If gas prices fell sharply, what would economists expect to happen in the market for fuel-efficient hybrid cars?
Thepotemich [5.8K]

Answer:

The correct answer is:  a decrease in the price and quantity of hybrid cars.

Explanation:

According to the Efficient Market Hypothesis (EMH), publicly-available information influence the asset's price movement. In that sense, if it is widely known that the gas prices will fall sharply, hybrid cars -fuel and electrical fueled cars, will see a fall in their price since the demand will increase. As implies fewer profits for a company, they are likely to produce fewer units of those types of vehicles.

5 0
4 years ago
Our most rapid and automatic emotional responses may result from the routing of sensory input through the thalamus directly to t
barxatty [35]
The part of our nervous system that is where the sensory input goes through is the amygdala. The amygdala is also a part of the limbic system wherein it is where our emotions are processed in the part of our brain. It also initiates our capacity to remember things and dictates our conciousness. 
7 0
3 years ago
The Baldwin company will continue to train their existing workforce at their current level to help reduce turnover and improve p
Anarel [89]

Answer: $1,600

Explanation:

The training hours per employee can be calculated by multiplying the Employee Training hours by the cost of training per employee.

From the Attached document, the Baldwin company does 80 hours of training for employees.

The Training costs per Employee is;

= 80 * 20

= $1,600

6 0
3 years ago
Ozone (O3) is a gas in the earth's atmosphere. How do you know that ozone is covalently bonded and not ionically bonded?
garik1379 [7]

Answer:

The answer is below

Explanation:

A covalent bond is a type of chemical bond that occurs as a result of the sharing of electron pairs between atoms. Covalent bonds are usually formed between non metallic atoms with similar electronegativity. St room temperature, covalent bond exist as either a liquid or a gas. Example of covalent bonds are ozone (O3), water (H2O) etc.

Ozone is said to be covalent bonded because their is a sharing of electrons among the covalent atoms.

5 0
3 years ago
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