When you receive an assignment to write a report, you should begin the report-writing process by

Svetradugi [14.3K]

Answer:

I think industrial markets

7 0

1 year ago

Suppose DeepMind Inc. will pay $1.50 per share in dividends next year. The require return on the stock is 10% and its dividends

Brums [2.3K]

Answer:

C. All else being equal, the growth rate of the dividends is greater than 2%

Explanation:

The formula to calculate the fair price of a stock with a constant growth in dividends is as follows,

P = D1 / r-g
Where D1 is the dividend next period
r is the required rate of return
g is the growth rate in dividends
P = 1.5 / 0.1 - 0.02 = 18.75
We are taking 1.5 as D1 as it is the dividend per share DeepMind will pay next year.

So, we will be willing to pay more than 18.75 if the fair price per share today is greater than 18.75. We check all the 3 options.

A. say the required rate is 10.1%

P = 1.5 / (0.101 - 0.02) = 18.52
So if the required rate of return increases from 10%, the fair price per share is falling and we will be willing to pay less than 18.75 per share.

B. P = 1.2 / (0.1 - 0.02) = 15

If D1 = 1.2,the fair price per share will be 15 which is less so we will not be willing to pay more than 15 for such share.

C. Say the growth rate in dividends is 2.1%

P = 1.5 / (0.1 - 0.021) = 18.99
The fair price per share increased to 18.99 if the growth rate in dividend increases by 0.1 percentage point. Thus, C is the correct answer

3 0

2 years ago

Which of the following is NOT a condition for a firm to engage in price discrimination? Multiple Choice The consumers are sincer

Radda [10]

Answer:

The correct answer is The consumers are sincere in revealing their true natures.

Explanation:

This is not a condition because the company does not take into account factors of this type to determine price changes, to consider the setting of new prices for products. In order to determine these changes, you must establish real data on the behavior of demand and determine if the goods produced have the characteristic of being storable to be traded over a longer period of time.

6 0

2 years ago

Which type of Financial Aid am I? I am given to students who come from lower-income families and I do not need to be repaid. *

Bas_tet [7]

Grant. A grant, is a form of financial aid that doesn’t have to be repaid.

8 0

3 years ago

Another term for the cash-and-carry purchasing procedure is: Question 2 options: a) stockless purchasing b) forward buying c) fi

satela [25.4K]

Answer:

Will call purchasing

Explanation:

Cash and carry also known as "will call purchasing" or "carry trade" is a sales strategy or method of purchase in which a customer must pay for an item immediately and must take the item with them. It eradicates all forms of credit sales.

Cash and Carry involves paying for an item and taking it along with you. There is no space for future delivery and it doesn't include delivery cost in the price of an item.

Pickup can't be delayed to a later date.

5 0

2 years ago