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katrin [286]
3 years ago
7

AFW Industries has 214 million shares outstanding and expects earnings at the end of this year of $ 723 million. AFW plans to pa

y out 59 % of its earnings in​ total, paying 40 % as a dividend and using 19 % to repurchase shares. If​ AFW's earnings are expected to grow by 8.4 % per year and these payout rates remain​ constant, determine​ AFW's share price assuming an equity cost of capital of 11.2 %
Business
1 answer:
hammer [34]3 years ago
5 0

Answer:

32

Explanation:

32323

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SWOT analysis is useful in part because it obliges the firm to act proactively by putting an emphasis on identifying opportuniti
S_A_V [24]

Answer: True

Explanation:

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is very popular because even though it appears simple, it can have such a massive impact on a company because it alerts Management to opportunities that exist to take the firm forward.

It also speaks to the company on ways to converge strategies that aim to harness the strengths or weaknesses in a Firm's INTERNAL and EXTERNAL environment with the aformentioned OPPORTUNITIES and THREATS thereby leading to a COMPLETE decision making process and result that can serve to push the company to be Proactive in taking strides that will grow the company.

SWOT analysis is a pure example of, "Simplicity is the ultimate Sophistication".

4 0
2 years ago
Read 2 more answers
Interior Design Group is an all equity firm that has 40,000 shares of stock outstanding. The company has decided to borrow $1 mi
AleksandrR [38]

Answer:

The total value of this firm if you ignore taxes is $16 million.

Explanation:

Considering that the company has decided to borrow $1 million to buy out the shares of a deceased stockholder who holds 2,500 shares, hence to calculate the total value of the firm we have to first make the following calculation:

$1,000,000÷2,500= 400

Hence, Total value of the firm= 400×40,000 shares of stock outstanding

                                                 = $16 million is the total value of this firm if you ignore taxes.

3 0
3 years ago
Average Rate of Return
Natali [406]

Answer:

22%

Explanation:

The formula to compute the accounting rate of return is shown below:

= Average net income ÷ average investment

where,  

Average net income is

= Total income ÷ number of years

= $148,500 ÷ 5 years

= $29,700

And, the average investment would be

= (Cost - salvage value) ÷ 2

= ($300,000 - $30,000) ÷ 2

= $270,000 ÷ 2

= $135,000

Now put these values to the above formula  

So, the rate would equal to

= $29,700 ÷ $135,000

= 22%

8 0
3 years ago
Misra Inc. forecasts a free cash flow of $ 35 million in Year 3, ie, at t = 3, and it expects FCF to grow at a constant rate of
Ray Of Light [21]

Answer:

the answer for this question is 1289.44

8 0
2 years ago
Annie is working in an organization where her paycheck reflects how many hours she has worked with each paying client. For​ her,
konstantin123 [22]

Answer:

A. Expectancy theory

Explanation:

Expectancy theory asserts that people make certain choices because they are motivated by what they expect the result of their choices will be.

Annie's view of her pay as very fair and motivating is as a result of her desire to work more hours with clients. Meaning her mediation of the outcome or result (number hours spent) motivates Annie.

4 0
3 years ago
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