Answer:
The cost of equity is 12.49 percent
Explanation:
The price per share of a company whose dividends are expected to grow at a constant rate can be calculated using the constant growth model of the DMM. The DDM bases the price of a stock on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / r - g
Where,
- D1 is the dividend expected for the next period
- r is the cost of equity
- g is the growth rate in dividends
As we already know the P0 which is price today, the D1 and the growth rate in dividends (g), we can plug in the values of these variables in the formula to calculate the cost of equity (r)
100.81 = 8.76 / (r - 0.038)
100.81 * (r - 0.038) = 8.76
100.81r - 3.83078 = 8.76
100.81r = 8.76 + 3.83078
r = 12.59078 / 100.81
r = 0.12489 or 12.489% rounded off to 12.49%
Answer:
I think is the first one I'm not sure but I think is that one.
Answer:
Production December= 15,000
Explanation:
Giving the following information:
Month Unit Sales
October 10,000
November 14,000
December 15,000
Finished goods inventory at the end of November was 4,000 units.
<u>To calculate the production required for December, we need to use the following formula:</u>
Production= sales + desired ending inventory - beginning inventory
Production= 15,000 + 16,000*0.25 - 4,000
Production= 15,000
Answer:
Job rotation
Explanation:
Job rotation means moving employees from one job to another so that they are trained to do multiple roles. This way, the tasks of each job stay the same and employees learn these basic tasks for each job they try. An example is a grocery store where the greeter is cross-trained to be a cashier, to collect carts from the parking lot, and to unload boxes onto the shelves.
Answer:
Both low price and high quality.
Explanation:
The characteristics that make a product or service have a perceived value for the consumer, are the various functionalities and benefits that satisfy the needs and desires of the customer. Such benefits are independent of the price of the product or quality, since value is a set of rational or irrational attributes that the consumer perceives, such as the brand image, experience, functionality, product benefits, etc.
Value creation is variable for each consumer group, as each person perceives value as a set of specific attributes that satisfy their desires, so it is not possible to classify low price or high quality as value determinants, as these characteristics change according to the consumer's style.
Therefore, for a company to deliver value to the consumer, it is essential that it conducts segmentation studies and identification of its target audience and from there develop strategies aimed at creating value for its audience.
