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oee [108]
3 years ago
5

Firm X just paid​ $5/share dividend. We expect the dividend to grow annually at a constant rate​ 3%. The current stock price is​

$100. If firm X issues new​ equity, the new shares would sell at​ $98/share and the firm also needs to pay investment banks​ $3/share flotation cost. What is the cost of retained​ earnings? g

Business
1 answer:
mariarad [96]3 years ago
4 0

Answer:

Cost of Earnings = (Dividends per share for next year ÷ Current market value of the stock) + Dividend growth rate

= 8.42 %

Explanation:

See Attachment

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Team members can collaborate on ideas using telepresence. <br> a. True <br> b. False
Kisachek [45]
That statment is true
Telepresence is a tool that allow each team members to communicate with one another even though they're located far apart.
Actually,  if this tool is used correctly, it enhance team's capability to pay attention to a certain individual when he/he is talking about their ideas for the group
8 0
3 years ago
What is a marketing plan and why is it a company's a most important document? What basic elements should be included in a top-do
bonufazy [111]

Answer:

Explanation:

A marketing plan refers to the comprehensive document that outlines a company's overall marketing effort. It is a blueprint that outlines how a company will implement its marketing strategy, and how the company will utilize a combination of resources in order to achieve its business objectives. It is a company's a most important document because:

  • It contains specific goals and objectives and outlines the precise strategies to be used in achieving them.
  • It rallies the company's forces and resources for the marketing battlefield and therefore, dictates the role of Integrated Marketing Communications (IMC) in the marketing mix.

A marketing plan should always have the following:

  • A situation analysis: normally this will include a market analysis, a SWOT analysis and a competitive analysis.
  • Marketing strategy
  • Sales forecast
  • Expense budget.

Small companies can use bottom-up marketing to become big companies by creating an ingenious tactic they can use and building a strategy around it.

The elements of an advertising plan and an IMC strategy:

  • The IMC strategy will be determined by how the marketer makes use of the creative mix.

The creative mix is composed of:

  • The target audience
  • Product concept
  • Communications media, and
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The best method of allocating funds for a real estate development is the sales percentage, market share, objective task, empirical research

The type of companies that tend to use the percentage of sales method are companies that want to use a method that will cost them nothing and will provide a greater chance of success for future sales.

4 0
3 years ago
Which of the following describes the management function that includes determining which tasks will be done, who will do them, h
ololo11 [35]

Answer:

Planning management function

Explanation:

Planning is a management procedure which aims to identify objectives for the long term future of an organization and to determine the tasks and resources required in achieving these objectives. Managers should create a business plan or a marketing plan for achieving objectives.

4 0
3 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
Firdavs [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111  

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0
3 years ago
Calculate the ROI dollar amount and percentage for these example investments. a. You invest $50 in a government bond that says y
Naily [24]

Answer:

a. ROI Dollar Amount $4; ROI percentage = 8%.

b.ROI Dollar Amount $15; ROI percentage = 15%.


a. We have:

Initial investment            $50

Amount at year end       $54

ROI Dollar Amount         54 -50 = 4

ROI Percentage              \mathbf{ \frac{4}{50} * 100 = 8%}

b.

Initial investment            $100

Amount at year end       $115

ROI Dollar Amount         115 -100 = 15

ROI Percentage              \mathbf{ \frac{15}{100} * 100 = 15%}

8 0
3 years ago
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