Answer:
A. 16.71%
Explanation:
Use dividend discount model (DDM) to solve this question.
Formula for finding the required return of a stock is;
r = 
where P0 = Current price = $17.50
D1 = Next year's dividend = $3.45
r= required return = ?
g= growth rate = -3% or -0.03 as a decimal (negative sign is because dividend is expected to decrease)
r = 
As a percentage , it becomes 16.71%
Answer:
Option (b) is correct
Explanation:
The reason is that in the in a strong project matrix, the functional manager has decisions making authorities where’s the project manager has more power in terms of authority. He is able to make changes in his team to manage the time, cost and quality of work done.
Answer:
d. explicit forecast period and a terminal value
Explanation:
The concept involves giving the current values to the expected future cash flows of a project. Discounted cash flows seek to assign a present value to the projected future income of a company. The discount cash flow techniques use an appropriate discount rate in evaluating forecasted revenues.
Discounted cash flow valuation methods are used in capital budgeting. They are decision-making tools that help managers and shareholders determine whether to invest in a project or not. Discounted future revenues communicate the profitability potential of a project.
<u>Chipper's analysis of the situation sounds reasonable to the general manager-This statement is true according to the expectancy theory.</u>
Explanation:
<u>Expectancy theory states that the employee in an organization will be motivated to work or put in efforts if they believe that the putting in more effort will yield them better result in terms of their job performance (The benefits can be in form of an increase in salary or incentives)</u>
An employee would be motivated to put in higher amount of effort to perform better on the job. This would occur at an even rate if he knew what the rewards were going to be.
<u> For instance, an extra day off or increase in salary.</u>
<u>According to expectancy theory, t</u>he participants will ask themselves if it is possible to win the tournament given the other talent that will be competing, and, whether the experience and reward be worth the expense that they are incurring for a round of golf.
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
