Answer:
Share price = $85.684
Explanation:
It is given that ,Ke = cost of equity = 15% ,g = Growth = 9.2%% and Dividend and Repurchase = 40%
Now we know that
PV = CF /(Ke- g)
PV = $2.05 billion*0.4 / (0.15-0.092) = 0.84 billion /0.058
=$14137931034.483
Share price = $14137931034.483 / 165000000 million
Share price = $85.684
Donna independently owns and operates Punkin's Pies, a small business with about 30 employees. She is happy with the size of her business and the average profits it generates. From this scenario, Donna's business can be considered an entrepreneurial venture - False.
<u>Explanation:</u>
A person starting a new business with limited amount of resources and plans is called an Entrepreneur. He is the person who takes responsibilities for the risk and rewards that are associated with that business. The idea of the business must be unique and it should focus only on newer products.
A small business and an entrepreneurial ventures differs from each other although they have similar roles. A small business generally deals with a familiar and an product and services that are already established. The persons of small business usually have risks that are already known. In an entrepreneurial venture, only new products and unknown risks are present.
Answer:
Allocate sufficient resources and support for the HRX initiative ( B )
Explanation:
Allocating sufficient resources and support for the HRX initiative is a very good step in the right direction as the HR Manger in trying to implement the HRX initiative and also for the long term success of this Initiative as well.
since The main goal of the Head of the Human resources department is to transform the company's production level to a higher level of productivity in a quicker timer frame, dedicating more resources and support to the initiative will help to speed up activities and the company will start producing at a very fast rate. having to increase salary will not help because the workers can only do what they can do they can't go beyond their limit hence there will be health emergencies.
Answer:
Ford's weighted average cost of capital is 8.22 %
Explanation:
Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.
Calculation of WACC
WACC = Cost of equity + Cost of preferred stock + Cost of debt
Capital Source Market Values Weight Cost Total Cost
equity $ 7 billion 29.17% 13.6% 3.97 %
preferred stock $ 2 billion 8.33% 12% 1.00 %
debt $ 15 billion 62.50% 5.2 % 3.25%
Total $ 24 billion 8.22 %
Cost of equity = Risk free rate + Beta × Risk Premium
= 4% + 1.2 × 8%
= 13.6%
Cost of preferred stock = Dividend/Market Price
= $ 3/ $ 25 × 100
= 12%
Cost of debt = interest × (1- tax rate)
= 8% × (1-0.35)
= 5.2 %
Answer:
Synergy.
Explanation:
Synergy is the benefit that results when two or more agents work together to achieve something in a fruitful way, like the increased customer value, which either one could not have achieved on its own. It is the concept of the whole being greater than the sum of individual effects.
