Answer and Explanation:
The computation is shown below:
Year Cash flow PVF at 12% PV at 12%
D0 0 0 1 0
D1 0 0 0.89286 0
D2 0 0 0.79719 0
D3 2.25 2.25 0.71178 1.601505 (A)
D4 2.25 × 1.117^1 = 2.51325 0.63552 1.597221 (B)
D5 2.25 × 1.117^2 = 2.80730 0.56743 1.592946 (C)
Now
Horizon Value at D5 is
= Next Year Dividend ÷ (Required Rate -Growth rate)
= (2.25 × 1.117^2 × 1.036) ÷ (0.12 - 0.036)
34.6234 34.6234 0.56743 19.64634 (D)
Current Value 24.43801 (A + B + C + D)
Horizon Value = 34.62
Intrinsic Value = 24.43
Now
Current expected dividend yield is
= Dividend ÷ Market Price
= 0 ÷ 24 ÷ 43
= 0 %
And, the minimum expected capital yield should be equivalent to the required rate of return i.e 12%
The company should not paying the dividend because it involves various reasons lime expansion plans, seasonal & cyclical sales, buy back shares
Answer:
Gross national income
Explanation:
Gross national income is the income earned by a country's residents. Income from abroad is also included in the calculation of GNI. Income earned by non residents in the domestic economy is substracted.
GNI = GDP + [(income from investments abroad) – (income sent abroad)].
The idea that is not consistent with perfect competition is product differentiation.
<h3>What is a perfect competition?</h3>
A perfect competition is a market where there are many buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. This, they are price takers. There are no barriers to entry or exit of firms into the industry.
Here are the opti0ns to this question:
product differentiation
freedom of entry or exit for firms
a large number of buyers and sellers
price-taking behavior
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The red flags that help an organization to assess if it needs to clarify or reinforce its values includes:
- when top leaders send mixed messages about what is important
- when different individuals and subgroups have fundamentally
- when the organization has values but does not practice them .
<h3>What is a
red flag?</h3>
It refers to a warning or indicator that is suggesting that there is a potential problem or threat with a company's stock, financial statements, news reports etc. It may be any undesirable characteristic that stands out to an analyst or investor.
Hence, in this case a red flag has occurred when members lack understanding about how they should behave as they attempt to meet goals, when different individuals and groups have different value systems, when top leaders send mixed messages about what is important, when day-to-day life is disorganized, when members complain about the organization and when organization has values but does not practice them.
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This prompt is about internal control. The observation that is most likely to indicate the existence of control weaknesses are;
- Management has not taken corrective action to resolve past engagement observations related to inventory controls. The estimation for the loss on financial statements is $250,000;
- Separation of duties is not proper in the supplier payments process. The estimation for the loss on financial statements is $50,000
<h3>What is internal control?</h3>
Internal control is a procedure carried out by a company's board of directors, management, and other people to offer reasonable confidence that information is trustworthy, accurate, and timely.
In terms of adhering to applicable rules, regulations, contracts, policies, and processes.
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