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prisoha [69]
3 years ago
5

Harry Corporation's common stock currently sells for $179.85 per share. Harry paid a dividend of $10.18 yesterday, and dividends

are expected to grow at a constant rate of 6 percent forever. If the required rate of return is 12 percent, what will Harry Corporation's stock sell for one year from now, immediately after it pays its next dividend
Business
1 answer:
bixtya [17]3 years ago
3 0

Answer:

$190.64

Explanation:

In this question, we apply the Gordon model which is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Current year dividend

For one year

= $10.18 + $10.18 × 6%

= $10.18 + 0.6108

= $10.7908

For next year

= $10.7908 + $10.7908 × 6%

=  $10.7908 + 0.647448

= 11.438248

The other items rate would remain same

Now put these values to the above formula  

So, the value would equal to

=  11.438248 ÷ (12% - 6%)

= $190.64

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Sally Smith, a supervisor at Kroger's, was recently evaluated by her subordinates. Their responses indicated that Sally uses The
Temka [501]

OPTIONS:

A) naturally like work.

B) will work toward goals they are committed to.

C) have little ambition.

D) have the potential to accomplish the organization's goals.

E) seek out and accept responsibility

Answer:

C) have little ambition.

Explanation:

The theory X consists of a set of assumptions that that a manager or leader has regarding their subordinates. This theory is one of the theories of management that was developed by a social Psychologist known as Douglas McGregor.

According to Theory X, as proposed by McGregor, it is assumed that people are naturally lazy, and unwilling to work. It also assumes that they have little ambition, and would try as much as possible to avoid work. This theory assumes also that motivation that is monetary is what majorly drives people to work.

<em>Sally, treating employees  as if they have little ambition indicates she uses Theory X assumptions when dealing with employees.</em>

<em></em>

7 0
2 years ago
Which will help you make the most money without having to work for it? *
arlik [135]
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5 0
3 years ago
Consider the following two assets. The first is a stock fund, the second is a long-term government and corporate bond fund. The
yarga [219]

Answer:

0.76

Explanation:

So, in this particular question we are given that that there are two assets which are the; [1]. stock fund and [2]. a long-term government and corporate bond fund.

From the question/problem, we have that the Expected ret and the std. dev. for the Stock fund is 18% and 25% respectively. Also, the Expected ret and std. dev. for  Bond fund 11% and 18% respectively.

Thus, the investment proportion in the minimum variance portfolio of the bond fund = 1 - [ ( 18%)² - 0.4 × 25% × 18%) ÷ ( 25%)² + (18%)² - 2 × 0.4 × 25% × 18%. = 1 - [0.0144 ÷ 0.0609 ] = 1 - 0.24 = 0.76.

6 0
3 years ago
There are 12 general categories of threat to an organization's people, information, and systems. List at least six of the genera
Alenkinab [10]

Answer:

1. Human Error: an example is disregard to safety measures.

2. Compromises to Intellectual Property: an example is piracy of an organization's product.

3. Forces of Nature: an example is earthquake.

4. Information extortion: an example is coercion or blackmail.

5. Quality of service deviation: an example is an epileptic or poor power supply.

6. Industrial espionage: an example is unethical hacking of data.

Explanation:

A threat to an organization's people, information, and systems is basically any circumstances or events that poses a potential danger, damage or adverse affect to its smooth running.

These threats can be classified into six (6) categories and these are;

1. Human Error or failure: this are errors that arise as a result of having incompetent employees (slips and lapses) or mistakes stemming from the workers. <em>An example of human error is an employee that disregard safety measures. </em>

2. Compromises to Intellectual Property: this usually occurs when an intellectual property is stolen illegally from an organization. <em>An example is piracy of an organization's product.</em>

3. Forces of Nature: this is usually caused by a natural disaster. <em>Examples of forces of nature are flood, earthquake, fire etc. </em>

4. Information extortion: this arises when sensitive data about an organization is held through <em>coercion, bribery or computer hacking</em>.

5. Quality of service deviation: this would occur when there's a shortage in the quality of service received by an organization, contrary to what is expected or required. <em>Examples are poor power supply, poor internet service etc. </em>

6. Industrial espionage: this is as a result of loosing sensitive data to <em>unauthorized individuals or hackers.</em>

7 0
3 years ago
A bond's ______ is generally $1,000 and represents the amount borrowed from the bond's first purchaser. A bond issuer is said to
blondinia [14]

Answer:

Maturity value; Default; Sinking fund provision; Call provision.

Explanation:

Maturity value is the sum payable to an investor toward the finish of a debt instrument's holding period (maturity date).

Sinking fund provisions means a provision in some bond indentures requiring the backer to set cash aside to reimburse bondholders at maturity.

A call provision is a provision on a bond or other fixed-pay instrument that enables the guarantor to repurchase and resign its bonds.

8 0
3 years ago
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