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MrMuchimi
3 years ago
6

Michael's, Inc., just paid $1.85 to its shareholders as the annual dividend. Simultaneously, the company announced that future d

ividends will be increasing by 4.1 percent. If you require a rate of return of 8.3 percent, how much are you willing to pay today to purchase one share of the company's stock?
Business
1 answer:
LiRa [457]3 years ago
4 0

Answer:

$45.85

Explanation:

Price today = Next year dividend / (Rate of return - Dividend growth rate)

Next year dividend = $1.85 * 1.041% = $1.92585

Therefore, we have:

Price today = $1.92585 / (8.3% - 4.1%) = $45.85

Therefore, you will be willing to pay $45.85 today to purchase one share of the company's stock.

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Company X has a good whistle-blowing program in place. Sara used the whistle-blowing system to alert management about a fraud be
dedylja [7]

Answer:

lack of anonymity

Explanation:

According to my research on whistle-blowing systems within organizations, I can say that based on the information provided within the question the major issue that the program seems to have is a lack of anonymity. All whistle-blower systems are designed to be completely anonymous so that anyone who uses the system to do the right thing and report people who are breaking the law or rules are not mentioned and face backlash from co-workers. Apparently, the system that Company X is either not anonymous or is not adhering to the anonymity policy.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
4 years ago
Investing online is usually ________ than trading through a traditional stock brokerage firm.
just olya [345]

Trading stocks with an internet broker is typically less expensive than doing so through a traditional stock brokerage.

What is online trading?

  • Investing is very much essential these days as reserve funds alone isn't satisfactory to fulfill all our financial goals conjointly to defeat inflation.
  • There are a few venture choices accessible and you'll be able select them as per your needs and comfort.
  • Investment habit brings a sense of financial discipline in a person’s life as it makes you allocate a certain amount of money periodically for the purpose of investment.
  • It is less expensive as compared to traditional mode of trading. Brokers also promote online trading as it reduces maintenance and other costs incurred by the broker.
  • Trading can be wiped out a consistent way and in less time. Some time recently the coming of online advances, exchanging was a awkward prepare as you had to visit the broker or call your broker for setting or cancelling exchange orders.

To know more about online trading visit:

brainly.com/question/830555

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6 0
2 years ago
An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is?
soldier1979 [14.2K]

If the spending multiplier is greater than 1, an increase in investment may result in a greater increase in aggregate demand.

The aggregate demand simply rises as a result of an increase in investment when the spending multiplier is said to be greater than one, in essence.

What is Spending Multiplier ?

  • The spending multiplier is seen in terms of economics as a ratio between the change in GDP (Gross Domestic Product) and the change in autonomous expenditure.
  • With the use of an income and spending model, it may be easily shown visually. The value produced by a government's expenditure is said to exceed the amount of such expenditure.

To learn more about Spending Multiplier, visit - brainly.com/question/16887443

#SPJ4

8 0
2 years ago
Should the U.S. trade with Canada? If so, what should be imported and what should be exported?
Darya [45]
Nah I don’t think the us really needs to trade with Canada
4 0
3 years ago
Shatin Intl. has 10 million shares, an equity cost of capital of 13% and is expected to pay a total dividend of $20 million each
Zanzabum

Answer:

23.07 per share

Explanation:

\frac{divends}{return-growth} = Intrinsic \: Value

We will caltulate like the gordon model, but in this case growth= 0 and we are going to include the 10 millions stock repurchase in the dividend part of the equation.

Stock price= (future value of total dividends + repurchasing of stocks)/equity cost of capital)

(20 + 10)/0.13 = 230.77 MILLIONS

Then we divide by the number of shares:

230.77 MILLIONS/ 10 MILLIONS = 23.07 per share

3 0
3 years ago
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