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Serhud [2]
3 years ago
11

A7X Corp. just paid a dividend of $2.30 per share. The dividends are expected to grow at 15 percent for the next eight years and

then level off to a growth rate of 6 percent indefinitely. If the required return is 14 percent, what is the price of the stock today?
Business
1 answer:
erastovalidia [21]3 years ago
6 0

Answer:

$93.22

Explanation:

Data provided in the question:

Dividend paid, D0 = $2.30

Expected growth rate, g = 15% = 0.15

Growth rate for after year 8, g' = 6% = 0.06

Required return, r = 14% = 0.14

Now,

the Dividend for the year 8, D8 =  D0 × (1 + g)⁸

= $2.30 × (1 + 0.15)⁸

= $2.30 × 3.06

= $7.036

Thus,

Price of the stock today = D9 ÷ (r - g' )

= [ D8 × ( 1 + g') ] ÷ (r - g' )

= [ $7.036 × ( 1 + 0.06 ) ] ÷ ( 0.14 - 0.06 )

= 7.46 ÷ 0.08

= $93.22

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Digiron [165]

Answer:

The group of options for this question are the following:

A) makes individual contributions

B) seeks promotions and pay raises

C) has a low level of trust in her teammates abilities

D) both A and C

E) both B and C

The correct answer is A) makes individual contributions.

Explanation:

According to Chiavenato, one of the most recognized authors on human resources and administration issues, "Performance evaluation is a systematic assessment of the performance of each person in office or the potential for future development."

It consists of a formal review of work results that is carried out periodically in which the collaborator and his direct boss participate interactively, who must work together to plan, monitor and review work objectives, skills and values. of the collaborator also called competencies, as well as their general contribution to the achievement of individual, departmental and organizational objectives with the premise that it is more than an annual follow-up, a continuous process in which the team is advised and feedback is provided to make sure they are on the right track to achieve their professional goals and objectives by acting according to the company culture. Performance evaluation forms a system that seeks to assess in the most objective way possible the performance of each member of the company's work team.

8 0
3 years ago
about how much is present value of a dollar that be paid to you in three years if the interest rate is 5 percenr
matrenka [14]

The present value of a dollar would be calculated as -

1 dollar X Present value factor of $ 1 @ 5 % for three years.

Present value factor of $ 1 @ 5 % for three years = 0.8638

Present value of $ 1 after 3 years = $ 1 X 0.8638 = $ 0.8638

5 0
3 years ago
Live Trap Corporation received the data below for its rodent cage production unit. OUTPUTINPUT 50,000 cagesProduction time 620la
kenny6666 [7]

Answer:

Please see explanations below

Explanation:

Total productivity : Units sold

50,000 / [(620 × $7.5) + $30,000 + $15,530]

= 50,000 / [(4,650 + $45,530)]

= 50,000 / 50,180

= 1.0 unit sold per dollar input

Total productivity : Dollars of sales

(50,000 × $3.5) / [(620 × $7.5) + $30,000 + $15,530

= $175,000 / [($4,650) + $45,530

= $175,000 / $50,180

= 3.50 dollars in sales per dollar input

8 0
3 years ago
MacKenzie Company sold $680 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4.0% serv
Nostrana [21]

Answer:

Total Sales value = $680

Service charge percentage = 4%

Credit card expenses = Total Sales Value * Service Charge percentage = $680 * 4% = $27.20

Net amount received from credit card company = Total sales value - Credit card expenses = $680 - $27.20 = $652.80

The Journal entry to record sale transaction would be will be as follows:

Date    Particulars                       Debit       Credit

           Cash or Bank                 $652.80

           Credit card expenses    $27.20  

                      Sales                                       $680

            (Being sales made through card)

3 0
3 years ago
The core employees in the nine-box grid are those with ________. a. high potential and high performance b. low potential and out
Andrej [43]

The core employees in the nine-box grid are those with <u>high-potential and high performance</u>

<u></u>

Explanation:

In the nine-box grid, high-potential and high performing employees who should be developed for leadership positions in the company are termed <u>Star Performers</u>

<u></u>

<u>An assessment tool that is used to  evaluate the level (Both current and Potential) of contribution of an employee towards his organization.</u>

<u></u>

<u>A 9-box grid is a tool is used by HR for sucession Planning and employee development.In a 9-box grid employees are mapprd on 2 axis -Current Performance  and future potential</u>

<u></u>

<u>The High Potential employees are Termed as HIPOs.</u>

<u></u>

<u></u>

<u></u>

3 0
3 years ago
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