Answer:
The price of the stock today is $24
Explanation:
The price of the stock can be calculated using the dividend discount model. The price of the stock will include discounting back future dividends.
P0 = D0*(1+g) / 1+r + [D*(1+g) / r-g] / 1+r
P0 = 1.2*(1+0) / 1+0.09 + [1.2(1+0.04) / 0.09-0.04] / 1+0.09
P0 = $24
Answer: c. specialize in producing beer and export beer.
Explanation:
As per the Theory of Competitive Advantage posited by David Ricardo, a country should specialize in the good that it has a competitive advantage in. A country has a competitive advantage if it incurs a less opportunity cost in producing the good.
Opportunity cost of producing beer for Germany = MPLc/MPLb = 2/5
Opportunity cost of producing beer for China = MPLc/MPLb = 1
Germany has a lower cost of producing beer so they should specialize in this and export it.
Answer: centralization
Explanation:
When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to centralize.
Centralization is simply when an organizational activities especially those that has to do with decision making, planning, framing policies and strategies are all concentrated in a particular location group.
Answer:
The correct answer is letter "A": group decision making.
Explanation:
Group decision making allows members to share individual experiences among the team. The team usually starts by brainstorming ideas on their tasks so the path they will follow is decided by the majority of them. These types of actions create a sense of justice in the group that later will be translated into commitment with the path taken. Besides, as the team members elected that path by themselves, they are likely to have a deeper understanding of what they are looking for the result of the work to be.
Answer:
8.20%
Explanation:
Debt equity ratio = 0.95
or
Debt = 0.95 × equity
Cost of equity, ke = 11% or 0.11
Pretax cost of debt, kd = 7% or 0.07
Tax rate = 24% or 0.24
Therefore;
WACC = {Weight of equity × ke } + {Weight of debt × kd × (1-Tax rate)}
It is to be noted that ;
Weight of equity = Equity ÷ (Debt + Equity)
= Equity ÷ ( 0.95×Equity + Equity)
=1 ÷ 1.95
=0.513
Also,
Weight of debt = Debt ÷ ( Debt + Equity)
=0.95 × Equity ÷ ( 0.95 × Equity + Equity)
= 0.95 ÷ 1.95
=0.487
Hence,
WACC = {0.513 × 0.11} + {0.487 × 0.07 × (1-0.24)}
= {0.05643} + {0.03409 × 0.76}
= 0.0823384
or
0.0823384 × 100%
=8.23384
=8.20%
