Answer: ADRs.
Explanation:
ADRs or American Depository notes are a way for American investors to buy stock in foreign companies without the companies having to list themselves in any American exchange. It works by an American depository bank issuing the ADR which would have a varying number of shares in a foreign company with the minimum being 1 share. Investors can then buy these ADRs. These ADRs also trade on stock exchanges as well.
Available Options Are:
A. Continue training to improve its employees' skills
B. Promote the best associates to managers
C. Threaten lay-offs if goals are not hit
D. Provide positive reinforcement for hitting goals
Answer:
Option D. Provide positive reinforcement for hitting goals
Explanation:
The training program is not required as the managers are already trained which means their is not skills deficit which has resulted in not achieving the business goals. Hence Option A is incorrect.
Option B is also incorrect because previously the same managers had achieved the goals hence promoting best associates to managers will not be impact making.
Option C is incorrect because threatening may result in further demotivating employees and it will also increase employee turnover. Hence it is also not a solution.
Option D is correct because the employees are demotivated and all they need is motivation which can be developed by developing a system of reward. This can be achieved by linking their interests with the company's interest. If they achieve their target then they must be awarded a certain portion of the target say 1%. This will increase their motivation to earn more by making additional sales.
Answer:
a $7.95
b. $2.21
c $16.36
d, $13.01
Explanation:
according to the constant dividend growth model
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 2/3 = 1/3
1/3 x 3.6 = $1.2
r = cost of equity
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
5% + 1.7(15 - 5) = 22%
g = growth rate
g = plowback rate x ROE
2/3 X 9 = 6%
1. [1.2 x 1.06] / (0.22 - 0.06) = 1.272/ 0.16 = $7.95
2.
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm
price to earning ratio = market value per share / earnings
$7.95 / $3.6 = $2.21
c. present value of growth opportunities = earnings / cost of equity
3.6 / 0.22 = $16.36
d.
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 1/3 = 2/3
2/3 x 3.6 = $2.40
r = cost of equity = 22%
g = plowback rate x ROE
1/3 X 9 = 3%
[2.4 x 1.03] / (0.22 - 0.03) = 2.472/ 0.19 = $13.01
Answer:
a. An increase in a firm's debt ratio, with no changes in its sales and operating costs, could be expected to lower its profit margin on sales.
<span>Return of 6 month treasury bill = 6/94 = 6.383% Annual return with semi-annual compounding = 6.383% * 2 = 12.766%
Hope this helped!
STSN</span>