Which fixed expense would be most difficult to change if money is needed for car payments? rent utilities groceries internet

Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next

lora16 [44]

Answer:

$41.96

Explanation:

The first thing you need to do is to calculate terminal value at the end of time t = 3. Then the intrinsic value of the stock is sum of discounted cashflow from t =1 to t = 3 (cashflows at t = 3 includes dividend as well as terminal value).

Terminal value at t = 3 = Dividend in year 4/(Required rate of return - Dividend growth)

= 4.25 x (1 + 3%)/(12.5% - 3%)

= 46.08

Then value of the stock is calculated as below:

Stock intrinsic value = 3.8/(1 + 12.5%) + 4.1/(1 + 12.5%)^2 + (4.25 + 46.08)/(1 + 12.5%)^3

= 41.96

6 0

3 years ago

Who are the main stakeholders that the y is attempting to reach with the information it has gained through its market research?

Hitman42 [59]

The main stakeholders that the Y is attempting to reach with the information it has gained through its market research are the Primary stakeholders and the Secondary stakeholders.

There are three types of market research- Descriptive, Exploratory, and Causal. Y has conducted causal market research wherein the effect of change on the current operations is quantified.

Here, in this causal market research, Y is attempting to reach the Primary stakeholders and the Secondary stakeholders with the information it has gained through its market research.

Primary stakeholders are those individuals, groups or entities who are involved with the monetary transactions of an organization. Primary stakeholders include- employees, customers, investors, banks, lenders etc.

Secondary Stakeholders are the stakeholder who are not directly involved in a company, thus, they have indirect influence over the company. Secondary stakeholders include- competitors, government, trade unions, community etc. These groups do not have any financial interest in the company.

Hence, the answer is given and explained above.

To learn more about the stakeholders here:

brainly.com/question/24125431

#SPJ4

7 0

2 years ago

Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,

Ratling [72]

Answer:

B) 9.1%

Explanation:

Cost of debt is the interest rate paid by a company due to borrowing money; i.e debt from investors.

$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;

First, find pretax cost of debt ;

Pretax cost of debt = (Interest expense / Face value of debt )*100

= (26,000,000/ 185,000,000 )*100

=0.1405 *100

= 14.05%

Next, use pretax cost of debt to find after-tax cost of debt;

After-tax cost of debt = Pretax cost of debt (1-tax)

= 14.05% *(1-0.35)

= 9.13%

Therefore, Westford's cost of debt capital is 9.1%

6 0

3 years ago

Suppose you examine the central bank’s balance sheet and observe that since the previous day, reserves had fallen by $100 millio

aksik [14]

Answer:

The Central Bank is trying to increase money supply.

Explanation:

When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.

It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.

In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.

In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.

Cheers!

6 0

3 years ago

Harrison Corp. wants to raise its level of service to enhance customer experience. The board of directors sent out an email cont

romanna [79]

Answer:

Downward communication

Explanation:

Downward communication in a formal structure is the flow of information in terms of orders, appreciation, encouragement from higher authority to subordinates across the organization.

Upward communication in the form of feedback and problems flow from lower level employees to upper level. Here, the board of directors are top level employees who have passed the message to the employees to raise the level of service. This is a form of downward communication.

4 0

3 years ago