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ElenaW [278]
3 years ago
10

BioScience Inc. will pay a common stock dividend of $4.60 at the end of the year (D1). The required return on common stock (Ke)

is 17 percent. The firm has a constant growth rate (g) of 7 percent. Compute the current price of the stock (P0)
Current Price______________
Business
1 answer:
Angelina_Jolie [31]3 years ago
8 0

Answer:

The current price of the stock is $46

Explanation:

We will use the gordon growth model to calculate the price of the stock. The formula is

Price= D1/R-G

D1 is the year end dividend

R is the required return on the stock and G is the constant growth rate.

We will plug in the numbers in the formula in order to find the price.

4.60/(0.17-0.07)=46

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Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated
kow [346]

Answer:

False

Explanation:

Retained earnings have no flotation costs, but have opportunity costs. For example, if companies distribute the earnings to shareholders, shareholders can invest the funds in alternative sources for returns.

8 0
3 years ago
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According to Ari Wallach, what is short-termism, and why is it a problem?
Ostrovityanka [42]

Answer:

<em><u>short-termism </u></em>

Is the acting upon short term vision of the needs and problems that must be addressed. It is a problem because the vision that is important is the Long path vision.

<em><u>What is “longpath” and why did Wallach develop the concept?  </u></em>

Is a concept that combines long term vision and goal oriented. Wallach develop that concept as he did not find a term that frame what is intended in the long run that was goal oriented.

<em><u>Briefly discuss each of the three ways of thinking that Wallach describes.  </u></em>

Transgenerational thinking: Thinking the impact of your actions in the future generations to come.  

Futures thinking: The future is not related only with better technology but with how will human relationships, moral, art and feelings like compassion will evolve.

Telos thinking: This is an invitation to think having in mind what is the "ultimate aim" of our actions as little of they might be. It is important to raise the question: how this action that I am doing now will impact or change the future in 20,50 or 100 years to come.

<em><u>How does Wallach relate the future to a part of speech? </u></em>

Wallach make a link between Thomas Khun quote: “People don’t shift unless they have a vision of what it is they’re shifting to.” an Martin Luther King Speech of "I Have a Dream" he says that that speech is successful as it shows what is the vision of what a dream must looks like

3 0
3 years ago
David bought a pickup truck to transport his equipment on weekend fishing trips. He also bought a trailer for his lawn maintenan
trasher [3.6K]

Answer:

B2C and B2B, respectively.

Explanation:

The pickup that David bought to transport equipment on weekend fishing trips should be considered a business to consumer (B2C) transaction David will use it for recreational activities.

The trailer that David bought to transport his lawn maintenance equipment should be considered a business to business (B2B) transaction David will use it for his lawn maintenance business.

6 0
3 years ago
How would a computer enhance the productivity of a business
Bas_tet [7]
A computer would enhance the productivity of a business because it would produce better communication and would also help things be accomplished faster. hope that helps if not lmk

7 0
3 years ago
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A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound. An alternative would be
n200080 [17]

Answer:

If the company process further the units, income will decrease by $600.

Explanation:

Giving the following information:

A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound.

An alternative would be to process Product A further for $13,600 and then sell it for $23.00 per pound.

We need to determine the result of further processing the product.

Sell as-is:

Effect on income= 1,300*13= $16,900 increase

Continue processing:

Effect on income= 1,300*23 - 13,600= $16,300

It is more profitable to sell the units before further processing.

8 0
3 years ago
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