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Alika [10]
3 years ago
11

LED​ Corp.'s common stock paid​ $2.50 in dividends last year ​(D0​). Dividends are expected to grow at a 12minuspercent annual r

ate forever. If​ LED's current market price is​ $40.00, and your required rate of return is 23​ percent, should you purchase the​ stock?
Business
1 answer:
frozen [14]3 years ago
6 0

Answer:

No, you should not purchase the stock as the stock is over priced.

Explanation:

Stock Price should be

Stock Price = Dividend last year / Required Rate of Return

                   = $2.50 / 23%

                   = $10.86

The current market price of the stock is $40 so the stock is over priced as it is $10.86 that is why you should not purchase the stock.

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mojhsa [17]
<span>They originally felt that licensing would be the best first step. By letting other companies use their product in exchange for paying royalty fees, Bernerd was licensing its product out for those companies to take advantage of the company's name.</span>
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3 years ago
A new triage team is being brought onto Salesforce and needs to have separate case statuses. How can this requirement be met?1.
vladimir2022 [97]

Answer:

The correct answer is number "3": Create a new Support Process.

Explanation:

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3 years ago
Welcome to the last week of your course. In this discussion question you have the opportunity to be creative and to relate what
Gnesinka [82]

Explanation:

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A good leader must understand that currently companies are increasingly responsible for their micro and macro environment, which configures them as active agents for positive change in the world. Therefore, the ideal is that managers consider adopting current practices that use modern communication and intelligence systems to make work easier and more agile, in addition to promoting continuous improvement in all organizational processes, avoiding waste and negative impacts on the environment, establishing social programs and environmental protection practices, in order to attest its value to stakeholders.

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4 0
3 years ago
Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce
user100 [1]

Answer:

a. $125 per month

b. $10,300 per month

Explanation:

Data provided in the question

Paid amount as a corporate accountant = $10,000

Renting cost = $300

Purchase of office supplies = $75

Monthly electric bill = $50

The computation is shown below:

a. Explicit cost

Explicit cost = Purchase of office supplies + increase in monthly electric bill

= $75 + $50

= $125 per month

b. Implicit cost

= Paid amount as a corporate accountant + renting cost

= $10,000 + $300

= $10,300 per month

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3 years ago
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