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Nat2105 [25]
3 years ago
9

Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is

10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A
Business
1 answer:
Rama09 [41]3 years ago
4 0

Answer:

The intrinsic value of Stock A is 500

Explanation:

According to the DDM method the formula for calculating the intrinsic value of a stock is

Upcoming Dividend/Required rate of return - Growth rate of stock.

Upcoming Dividend of Stock A= 5

Required rate of return on Stock A= 11% or 0.11

Growth rate on stock A= 10% or 0.10

Intrinsic value of stock A=

5/(0.11-0.10)=5/0.01=500

The intrinsic value of Stock A is 500

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A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts a cheeseburger as equival
konstantin123 [22]

Answer:

a. 14.13 Hamburger per week b. 13.78 Hamburger per week

Explanation:

a. First of all we can convert all the items on the menu to a same unit.

1 Cheese Burger = 1.29 Hamburger

1 Chicken Sandwich = 0.8 Hamburger

So in the first week total output of the restaurant is

Output = 700 Hamburger + 900 Cheeseburger + 500 Chicken Sandwich

or

Output = 700 Hamburger + 900*1.29 Hamburger + 500*0.8 Hamburger

Output = 2261 Hamburger

And as there are 4 workers so total input is

Input = 4*40 = 160 hours

The productivity is given by

Productivity = Output/Input

So

Productivity = 2261 Hamburgers/160 Hours

Productivity = 14.13 Hamburger per week

b. If the restaurant sold 720 of each sandwich, then total output would be given by

Output = 720 Hamburger + 720 Cheeseburger + 720 Chicken Sandwich

Output = 720 Hamburger + 720*1.29 Hamburger + 720*0.8 Hamburger

Output = 2204.8 Hamburger

So the productivity would have been

Productivity = 2204.8 Hamburgers/160 Hours

Productivity = 13.78 Hamburger per week

Which would have been lower as that of in the first case.

3 0
4 years ago
The County Auditor is the Chief ____ Officer of a county.
Leto [7]

Answer:

The County Auditor is the Chief <u>Fiscal</u> Officer of a county.

Explanation:

The County Auditor is Chief Fiscal Officer of the county. The primary responsibility of the county auditor is to account from the receipts and collection of funds by the county to the disperment of the funds to different county agencies. The county auditor also maintains the records of the movement of the county assets.

3 0
3 years ago
Which market is most likely to be characterized by oligopolistic competition in the united states?
k0ka [10]

The market most likely to be characterized by oligopolistic competition in the united states is smartphone service providers.

<h3>What is an oligopolistic competition ?</h3>

An oligopoly is when there are few large firms operating in an industry. This is because there are high barriers to the entry and exit of firms into the industry.  The  smartphone service provider industry is dominated by  five industries due to the high cost and regulations in the industry.

Here are the options to the question:

a) soybeans

b) pens and pencils

c) smartphone service providers

d) men's clothing

e) electrical service to the home

To learn more about oligopolies, please check: brainly.com/question/26130879

#SPJ1

3 0
2 years ago
If Project Repat were to acquire another firm that makes or sells similar products in similar markets, it would be an example of
SVEN [57.7K]

Answer:

b. Horizontal merger.

Explanation:

Project Repat is merging with a company that produces similar products to its own markets them in similar markets as well, this is an example of a horizontal merger that results in increased synergies between the similar firms and a greater market share opportunity.

Vertical mergers are usually not in the same industry. They would either be with the suppliers of Project Repat or customers who retail Project Repat's products.

Conglomerate is an example of diversification and usually the merging firms have different operations.

There are no information of clashes of any sort within the two  merging companies so it is uncertain whether this is a hostile takeover.

Hope that helps.

3 0
3 years ago
Suppose an economy is initially operating at long-run equilibrium when there is an increase in consumer optimism about the econo
sladkih [1.3K]

Answer:

The correct option is Increase and Decrease respectively

Explanation:

6 0
4 years ago
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