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suter [353]
3 years ago
10

You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $7.80. You have projected that di

vidends will grow at a rate of 9.0% per year indefinitely. If you want an annual return of 24.0%, what is the most you should pay for the stock now
Business
1 answer:
Lina20 [59]3 years ago
3 0

Answer:

The answer is $56.68

Explanation:

Solution

We recall that:

The firm paid a dividend of =$7.80

The projected growth of dividends is at a rate = 9.0%

The annual return = 24.0%

Now,

V = ($7.80 * (1.09)/(.24 - 0.9)

= (8.502)/(.24-0.9)

= (8.502) * (-0.66)

= $56.68

Therefore, this would be the most we would pay for the stock. If we paid less than that, our return would be above the 24%.

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Phillippe invested $1,000 ten years ago and expected to have $1,800 today. He has not added or withdrawn any money from this acc
weqwewe [10]

Answer:

d) He earned a lower interest rate than he expected

Explanation:

Data provided in the question

Invested amount ten years ago = $1,000

Expected amount = $1,800

Today amount = $1,680

Based on the above information,

Since the bond is based on the floating rate not the fixed rate that results in the value of the investment to $1,800

And, the today amount is $1,680 i.e. less than the expected amount so the internet rate should be less as compared with the expected rate

hence, correct option is d.

8 0
2 years ago
The use of simulation to create an aggregate plan:
12345 [234]

Answer:

Answer is option b i.e. will produce a plan that may not be the best plan.

Explanation:

Simulation is the technique used to create an artificial environment that is similar to the real-life situation to study various problems and how to tackle them. However, it is not the full proof plan which means it is based on certain probability and chances that a certain situation might arise. Many times situations are not as planned and here we cannot solely depend on the solution that we have learned during the simulation process. Therefore, the simulation will provide us with a plan that may or may not be the best plan.

6 0
3 years ago
Bill Blackburn is the new mayor of Oceanside, Washington. He discovered that the city-run utility requires a deposit of $50 from
Serjik [45]

Answer:

<em>Theory of justice </em>

Explanation:

A Justice Theory is a 1971 work of John Rawls ' political philosophy and ethics, whereby the writer addresses the problem of distributive justice.

The principle uses a revised sort of Kantian philosophy and a variant form of conventional theory of social contracts.

7 0
3 years ago
An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis. The company has set
luda_lava [24]
Although one would repair at the most time of 76 minutes, the other is at most 77.1 minutes. I would pick the second one because they may take longer by 1.1 minutes at most, they also included seconds, which seems more like an honest bid time.
3 0
2 years ago
In order to increase the sales of pizzas in a shopping mall, the management decides to insert very brief flashes of pizza images
guapka [62]

Answer: Subliminal persuasion

Explanation: It is a method of advertising, in which the advertiser tries to change the minds of the viewers without even getting to know them what is going on. It is usually used for consumer awareness.

In the given case, the use of brief flashes will attack the sub conscious mind of the consumers making them interested in buying pizza.

Thus , we can conclude that the management is using Subliminal persuasion.

7 0
3 years ago
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