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Ne4ueva [31]
3 years ago
10

Praetorian Industries will pay a dividend of $2.50 per share this year and has an equity cost ofcapital of 8%. Praetorianʹs stoc

k is currently trading at $84 per share. By comparing Praetorianwith similar firms, an investor expects that its dividends will grow by up to 5% per year. Whatis the best next step that the investor should take regarding Praetorianʹs stock?A) Sell any Praetorian stock that she owns.B) Short Praetorianʹs stock.C) Revise Praetorianʹs equity cost of capital.D) Revise her estimate of Praetorianʹs dividend growth
Business
1 answer:
Alenkinab [10]3 years ago
6 0

Answer:

The best next step that the investor should take regarding Praetorianʹs stock is C. Revise her estimate of Praetorian's Dividend Growth

Explanation:

Consider the following calculations

Price = D (1+g)/ (r-g) = 2.5*(1.05)/(0.08-0.05) = $ 87.5

Hence, the stock is underpriced at $ 84 per share .

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A manufacturing company hit by a slump in demand is experiencing a labor surplus. The company expects the market to improve in s
Ahat [919]

Answer:

C. Reduced work hours

Explanation:

Demotions is the act of reducing the rank/position of an employee from a higher position to a lower position. This is mostly taken as a corrective measure or a punishment to an employee. This doesn't spread the burden more fairly.

Outsourcing is the process whereby a company gives out some or most of it task to an outside company to do. This mostly occur if the company lack the required expertise for the job or is highly occupied with many tasks. This doesn't spread the burden more fairly.

Reduced work hours is the correct option. It reduces the working time for employee and gives each employee a chance to share the work burden fairly.

Overtime is the period an employee works after the scheduled regular working time. This doesn't share the burden fairly as the rewards for overtime is what makes most employee do overtime.

Employing temporary workers is not the correct option. A company employ temporary workers if it has lots of works undone and it present employee capacity cannot meet to demand.

5 0
3 years ago
Pyschographic segmentation involves grouping people based on where they live.
vlada-n [284]

Answer:

False

Explanation:

Psychographic segmentation involves classifying people by preferred activities, interests, opinions, social class,  personality, and lifestyle. Psychographic segmentation categorizes customers based on internal characteristics. Psychographic segmentation requires marketers to consider what customers value in life,  why they behave in specific ways, and the things they consider valuable.

Geographic segmentation is the strategy marketers use when you serve customers in the same area.

8 0
3 years ago
If many firms enter the computer software industry and consequently bid up the price of programmers, then:
Lena [83]

Answer:

the correct option is C) If many firms enter the computer software industry and consequently bid up the price of programmers, then: the long-run industry supply curve will slope downward.

Explanation:

When many firm enter an industry, there is competition and the presence of multiple players will eventually cause the cost of production to decline.

In the short run,  if many firms enter the computer software industry and consequently bid up the price of programmers, then the increase in participation will increase the number of software developed.

In the long run, industry supply curve will slop downwards indicating a price reduction.

4 0
3 years ago
____________ include veterans’ payments, welfare, and social security payments..
zvonat [6]

Answer:

<u><em>Statement of Payments</em></u>

Explanation:

<em><u>Statement of Payments</u></em> include veterans’ payments, welfare, and social security payments..

<u><em>Social Security Benefits </em></u>are payments made to qualified retirees, disabled persons, to their spouses, children and survivors etc.

<u><em>A statement of payments</em></u> is  usually submitted with income tax return to receive the Senior Citizens'€™ Exemption.

7 0
3 years ago
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,150 C
QveST [7]

Answer:

The quick ratio can be worked out as below;

Explanation:

Quick ratio=Current Assets excluding inventory stocks/Current liabilities

Current Assets=210+800

Current liabilities=$1,260

Quick Ratio =($210+4800)/$1,260

Quick Ratio=1.25

3 0
3 years ago
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