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d1i1m1o1n [39]
4 years ago
9

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from o

ther countries. World Food Market is an example of a company that:
Business
1 answer:
Svet_ta [14]4 years ago
5 0

Answer:

Imports

Explanation:

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from other countries. World Food Market is an example of a company that imports. Dominique imports products from different countries and make them available to its customers on their shelves. They have to buy those products from different sources. For this purpose, they have to put large amount of efforts in order to contact the foreign vendors and get their product imported in their country and ultimately at their store by spending costs and efforts. By importing products from other country, they can provide large product assortment to their customers.

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In two to three sentences, explain why a small amount of inflation encourages economic growth. will give brainliest
mylen [45]

Answer:

A small amount of inflation can be really good for the economy. It can boost consumer demand and consumption. This encourages spending and investing.

4 0
3 years ago
Which of the following organisations is most likely to sell shares for sale to invited investors?
Vsevolod [243]

Answer:

C. Private limited company

Explanation:

Ownership in a private limited company is restricted, unlike in a public limited company. The shareholders of a private limited company are usually family members, close friends, or people with a shared interest.

A private limited company can raise capital by selling additional shares. Because becoming a shareholder in a private limited company is restricted, private companies raise capital by selling shares to existing shareholders or to invited investors.

5 0
3 years ago
What is the movement of an economy from one condition to another and back again
pav-90 [236]

The business cycle is the movement of an economy from one condition to another and back again. The business cycle is also known as the economic cycle or trade cycle. This cycle represents the movement of resources from one end and their comeback at the same end after revolving. It can be understood as a businessman invests money in the business in the form of costs and the money comes back in the form of revenue or sales.


Hence the answer is the <u>Economic cycle</u>


3 0
3 years ago
How is a savings account most useful?
Ksenya-84 [330]

The fourth answer is correct (D).

The savings account is an investment that generates little income. To make long-term investments, there are other options that give a better return.

However, this type of account serves so that the money that will be used in the short term has at least some income. In other words, if the investor is sure that he does not need the liquidity of the money, he can apply in bonds, debentures, shares, etc. If the investor has money that needs to be kept liquid to be used soon, the best option is the savings account.

6 0
3 years ago
Read 2 more answers
Instructions: Please make sure that you show all your work when solving the problems. Feel free to make any assumptions whenever
My name is Ann [436]

Answer:

Explanation:

From the given information:

The current price = \dfrac{Dividend(D_o) \times (1+ Growth  \ rate) }{\text{Cost of capital -Growth rate}}

15 = \dfrac{0.50 \times (1+ Growth rate)}{8\%-Growth rate}

15 \times (8 -Growth \  rate) = 0.50 +(0.50 \times growth  \  rate)

1.20 - (15 \times Growth \ rate) = 0.50 + (0.50 \times growth \ rate)

0.70 = (15 \times growth  \ rate) \\ \\ Growth  \ rate = \dfrac{0.70}{15.50} \\ \\ Growth  \ rate = 0.04516 \\ \\ Growth  \ rate \simeq 4.52\% \\ \\

2. The value of the stock  

Calculate the earnings at the end of  5 years:

Earnings (E_o) \times Dividend \  payout  \ ratio = Dividend (D_o) \\ \\ Earnings (E_o) \times 35\% = \$0.50 \\ \\ Earnings (E_o) =\dfrac{\$0.50}{35\%} \\ \\ = \$1.42857

Earnings (E_5) year \  5  = Earnings (E_o) \times (1 + Growth \ rate)^{no \ of \ years} \\ \\ Earnings (E_5) year \  5  = \$1.42857 \times (1 + 12\%)^5 \\ \\ Earnings (E_5) year \ 5  = \$2.51763

Terminal value year 5 = \dfrac{Earnings (E_5) \times (1+ Growth \ rate)}{Interest \ rate - Growth \ rate}

=\dfrac{\$2.51763\times (1+0.04516)}{8\%-0.04516}

=$75.526

Discount all potential future cash flows as follows to determine the stock's value:

\text{Value of stock today} =\bigg( \sum \limits ^{\text{no of years}}_{year =1} \dfrac{Dividend (D_o) \times 1 +Growth rate ) ^{\text{no of years}}}{(1+ interest rate )^{no\ of\ years} }

+ \dfrac{Terminal\ Value }{(1+interest \ rate )^{no \ of \ years}} \Bigg)

\implies \bigg(\dfrac{\$0.50\times (1 + 12\%)^1) }{(1+ 8\%)^{1} }+ \dfrac{\$0.50\times (1+12\%)^2 }{(1+8\% )^{2}}+ \dfrac{\$0.50\times (1+12\%)^3 }{(1+8\% )^{3}}  + \dfrac{\$0.50\times (1+12\%)^4 }{(1+8\% )^{4}} + \dfrac{\$0.50\times (1+12\%)^5 }{(1+8\% )^{5}} + \dfrac{\$75.526}{(1+8\% )^{5}} \bigg )

\implies \bigg(\dfrac{\$0.5600}{1.0800}+\dfrac{\$0.62720}{1.16640}+\dfrac{\$0.70246}{1.2597}+\dfrac{\$0.78676}{1.3605}+\dfrac{\$0.88117}{1.4693}+ \dfrac{\$75.526}{1.4693} \bigg)

=$ 54.1945

As a result, the analysts value the stock at $54.20, which is below their own estimates.

3. The value of the stock  

Calculate the earnings at the end of  5 years:

Earnings (E_o) \times Dividend payout ratio = Dividend (D_o) \\ \\ Earnings (E_o) \times 35\% = \$0.50 \\ \\ Earnings (E_o) =\dfrac{\$0.50}{35\%}\\ \\ = \$1.42857

Earnings (E_5) year  \ 5  = Earnings (E_o) \times (1 + Growth \ rate)^{no \ of \ years} \\ \\ Earnings (E_5) year  \ 5  = \$1.42857 \times (1 + 12\%)^5 \\ \\ Earnings (E_5) year \  5  = \$2.51763 \\ \\

Terminal value year 5 =\dfrac{Earnings (E_5) \times (1+ Growth \ rate)\times dividend \ payout \ ratio}{Interest \ rate - Growth \ rate}

=\dfrac{\$2.51763\times (1+ 7 \%) \times 20\%}{8\%-7\%}

=$53.8773

Discount all potential cash flows as follows to determine the stock's value:

\text{Value of stock today} =\bigg( \sum \limits ^{\text{no of years}}_{year =1} \dfrac{Dividend (D_o) \times 1 + Growth rate ) ^{\text{no of years}}}{(1+ interest rate )^{no \ of\ years} }+ \dfrac{Terminal \ Value }{(1+interest \ rate )^{no \ of \ years }}   \bigg)

\implies \bigg( \dfrac{\$0.50\times (1 + 12\%)^1) }{(1+ 8\%)^{1} }+ \dfrac{\$0.50\times (1+12\%)^2 }{(1+8\% )^{2}}+ \dfrac{\$0.50\times (1+12\%)^3 }{(1+8\% )^{3}}  + \dfrac{\$0.50\times (1+12\%)^4 }{(1+8\% )^{4}} + \dfrac{\$0.50\times (1+12\%)^5 }{(1+8\% )^{5}} + \dfrac{\$53.8773}{(1+8\% )^{5}} \bigg)

\implies \bigg (\dfrac{\$0.5600}{1.0800}+\dfrac{\$0.62720}{1.16640}+\dfrac{\$0.70246}{1.2597}+\dfrac{\$0.78676}{1.3605}+\dfrac{\$0.88117}{1.4693}+ \dfrac{\$53.8773}{1.4693} \bigg)

=$39.460

As a result, the price is $39.460, and the other strategy would raise the value of the shareholders. Not this one, since paying a 100% dividend would result in a price of $54.20, which is higher than the current price.

Notice that the third question depicts the situation after 5 years, but the final decision will be the same since we are discounting in current terms. If compounding is used, the future value over 5 years is just the same as the first choice, which is the better option.

The presumption in the second portion is that after 5 years, the steady growth rate would be the same as measured in the first part (1).

8 0
3 years ago
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