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KiRa [710]
3 years ago
8

Columbus Manufacturing's stock currently sells for $ 23.57 a share. The stock just paid a dividend of $2 a share (i.e.,D0=2). Th

e dividend is expected to grow at a constant rate of 6 % a year. What is the required rate of return on the company's stock? Express your answer in percentage, and round it to two decimal places, i.e., 13.54, for example for 0.1354)
Business
1 answer:
Rina8888 [55]3 years ago
6 0

Answer:

Required rate of return is 14.99%

Explanation:

Given:

Price of stock (Po)= $23.57

Dividend (Do) = $2

Growth rate (g)= 6% or 0.06

Using dividend growth model to calculate required rate of return:

r=\frac{d_{0}\left ( 1+g \right )}{P_{o}}+g

Substituting values in above formula, we get:

r = r=\frac{2\left ( 1.06 \right )}{23.57}+0.06

 = 0.1499 or 14.99%

Therefore, required return of company's stock is 14.99%

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Answer:

a. True

Explanation:

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Therefore, it is correct to say that innovation is a strategy that companies use to develop their processes and organizational systems, in order to keep up to date with market and consumption patterns, exceeding the expectations of their stakeholders. Despite demanding continuous effort and resources, innovation starts to be naturally increased in the companies that develop it, because it impacts the organizational culture in a positive way, generating greater creativity, productivity and continuous improvement of all organizational processes, which impacts on the positioning of the company in the market and its profitability.

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13. Average clients change their interiors every _______ years. A.2 C. 15
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The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called:
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The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

<h3>What is optimal-wage theory?</h3>

Optimal efficiency wage is one that that do occur when marginal cost of an increase in wages can be attributed to the marginal benefit associated to productivity.

Hence, idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

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8 0
1 year ago
You have just been hired as a brand manager of toothpaste for a large consumer products company. Your job mainly involves encour
vodka [1.7K]

Explanation:

If I am hired as brand manager I would do the following:

Step 1: To conduct an analysis with Production team & Sales Team

This step serves as the base to understand the challenges, process and the victory achieved so far. The aim is to promote the product. So it is necessary to analyze the challenges from both production team and mainly with sales team. I would do an analysis and find possible ways to fix those.

Step 2: Conduct a training program associated with step 1

After analyzing the possible way, since I don't have a direct control over the team, I would conduct a training program and will list down ways to face the challenge and promote the product. It will be conducted as a "Knowledge-sharing session"

Step 3: Concentrate on advertisement too

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Step 4: Re-analysis: This is where an hand-holding process gets initiated and continue through out. Once again go back to step 1 and the process continues.

6 0
3 years ago
The auditor of a public company is assessing the value of all the intangible assets owned by the company. Which of the following
liq [111]

Answer:

B. The company's brand equity

Explanation:

Intangible assets lack a physical presence. They are assets that cannot be touched or seen. Intangible assets are contrasted by tangible assets, which include land, buildings, vehicles, plants, and machinery.  Examples of intangible assets include patent brand names, trademarks, or and copyright.

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