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lyudmila [28]
4 years ago
5

Schiller Corporation will pay a $2.78 per share dividend next year. The company pledges to increase its dividend by 4.5 percent

per year, indefinitely. If you require a return of 15 percent on your investment, how much will you pay for the company’s stock today?
Business
1 answer:
cupoosta [38]4 years ago
7 0

Answer:

The Market price for the stock will be 26.48 according to the gordon dividend grow model.

Explanation:

We will calculate the stock price, using the gordon model for the dividend grow model:

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

D1 = 2.78

return = 15%

grow =    4.5%

\frac{2.78}{0.15-0.045} = Intrinsic \: Value

Stock market = 26,47619 = $26.48

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Walmart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics
disa [49]

The response of local competitors was slow because they lacked the ability to marshal resources.

<u>Explanation:</u>

The focused cost leadership is a tactic in which businesses selling identical goods in a given market reduce their prices to raise sales and gain a competitive edge.  Rather than sacrificing on value or already investing scarce resources to develop a commodity, reducing prices is a safer way to draw consumers. Walmart used such strategy to establish an edge in smaller communities but local competitors response was time taking as the resources were available but coordination among resources to result into proper manufacturing or servicing was lacking.

4 0
3 years ago
A company in Maine sends lobsters to France What is Maine doing? Select three options​
love history [14]

Answer:

Following are the answer to this question:

Explanation:

Some information is missing in the question. So, the correct choices can be described as follows:

i) practicing international trade

ii) exporting products

iii) participating in globalization

  • Maine has been globally traded because its, company transfers it's own goods at international frontiers when a client gives lobster with France in Maine.  
  • It exports products as its goods are manufactured in one nation, in this scenario the USA, is one other country, France in this case.
  • Finally, it participates in the process of globalization because the company operates internationally by selling its products.
7 0
3 years ago
Alicia has a very simple tax return and some degree of tax knowledge. She wants to file taxes without spending any extra money.
Lena [83]

Answer: Alicia has a very simple tax return and some degree of tax knowledge. She wants to file taxes without spending any extra money. What is her BEST option for filing taxes? Independently prepare her taxes.

Explanation:

6 0
3 years ago
A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expen
Sedbober [7]

Answer:

a. $16,350.

Explanation:

The computation of the advertising expense to Department T based on departmental sales is shown below:

= Total advertising expenses × Department T Sales ÷ total sales

= $37,000 × $212,550 ÷ $481,000

= $16,350

By multiplying the total advertising expenses with the department T sales and then divide it by the total sales we can get the allocation amount

6 0
4 years ago
The next dividend payment by Savitz, Inc., will be $2.12 per share. The dividends are anticipated to maintain a growth rate of 8
dedylja [7]

Answer:

The answer is 12.9%

Explanation:

This question will be solved using the Dividend Discount Model(DDM).

Po = D1/r - g

Po is the current worth of stocks

D1 is the next dividend paid

r is the rate of return

g is the growth rate

$43 = $2.12/ r - 0.08

43r - 3.44 = 2.12

43r = 5.56

r = 5.56/43

=0.129

Expressed as a percentage:

The required return for Savitz, Inc., is therefore 12.9%

8 0
4 years ago
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