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rewona [7]
3 years ago
10

Bosstown Inc. paid a dividend of $1.00 last year. The company expects to increase the dividend at a constant rate of 6% per year

, indefinitely. The required return for Bosstown stock is 11.6%% and the risk-free rate is 6%. What will the price of Bosstown's stock be if the required return falls to 8%?
Business
1 answer:
FrozenT [24]3 years ago
7 0

Answer:

When expected return is lowered to 8% share price is $53

Explanation:

The price of a stock =Do*(1+g)/r-g

Do is the dividend received last year of $1.00

g is the growth rate of dividend which is 6% per year

r is the required rate of return which is 8%

The price of Bosstown Inc's stock=$1.00*(1+0.06)/(0.08-0.06)

                                                        =$53

The price at 11.6% rate of return is also computed thus:

price=$1.00*(1+0.06)/(0.116-0.06)

       =$18.93

Hence by reducing expected return from 11.6% to 8% , the share price increased from $18.93 to $53,hence the higher the expected return , the lower the share price

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lbvjy [14]

Answer:

Government intervention

Explanation:

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During the current fiscal year, jeremiah corp. signed a long-term noncancellable purchase commitment with its primary supplier.
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Answer:

Option A. Debit unrealized holding gain or loss for $400,000 and credit estimated liability on purchase commitment for $400,000.

Explanation:

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The notional gain or loss at the end of fiscal year, can be calculated by taking the difference of the Agreed value and the current market value of the contract.

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3 years ago
"Melinda!" bellowed Torn to the company’s HR specialist, "I’ve got a problem, and you’ve got to solve it. I can’t get people in
Morgarella [4.7K]

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Explanation:

a.

Training can be defined as the effort made by the organization in order to provide their workers with the basic skills needed to ensure the efficiency of the work done in the organization. The main objective of training is to achieve a change in behaviour of those workers trained. Training help the workers to acquire technical knowledge and the problems solving skills in which they can utilized on the job in order to achieve the organizational goals and objectives.

b. The need for training includes the following

1. To improve productivity on the part of both the employees and the organization

2.Training helps in solving operational problems such as reduction in the accident in the workplace, Labour turnover, absenteeism, and grievances rate in the workplace.

3. Training help the organization in reducing the wastage of materials used in the production of goods as well as to ensure better utilization of machines used in production of goods.

4. Training helps in boosting the morale of the workers in the organization, in the sense that as the workers acquired new skills it will make them a better workers which increase their market value and enhanced their earnings power which in the long run lead to job security and self actualization for the workers.

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c. The summary of the need assessment include the following

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5. Monitor feedback during the course of training

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Answer:

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Explanation:

hope it helps!

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