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Ratling [72]
3 years ago
9

Storico Co. just paid a dividend of $1.50 per share. The company will increase its dividend by 20 percent next year and then red

uce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 15 percent, what will a share of stock sell for today
Business
1 answer:
jeyben [28]3 years ago
4 0

Answer:

The selling price today = $28.536

Explanation:

The question states that D0 is $1.5.

To calculate price, we need to calculate Present value of future dividends along with a terminal value from the time the dividend growth is becoming constant.

The D1 growth will be 20% of D2.

The fall in dividend growth will be 5% till it reaches 5%.

  • P0 = D1 / (1+r)  +  D2 / (1+r)²  +  D3 / (1+r)³  + D4 / r-g
  • Where,
  • r = required rate of return
  • g = growth rate

Thus,

P0 = 1.5*(1.2) / (1+0.15)  +   1.5*(1.2)*(1.15) / (1+0.15)²  +   1.5*(1.2)*(1.15)*(1.1) / (1+0.15)³   +  1.5*(1.2)*(1.15)*(1.1)*(1.05) / (0.15 - 0.05)

P0 = $28.536

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Answer:

b. location clustering near high traffic flows

Explanation:

Proximity to customers is a major consideration when deciding on a business location.  A business situated in areas with many potential customers has a high probability of succeeding. Restaurants are usually strategically situated in places with heavy customer flow.  

Restaurants may be established near offices, in market places, near public transport terminus, or other location convenient to customers.  With time, customers tend to associate that particular building, area, or street with restaurants. As the area becomes synonymous with restaurants, more customers will visit it, leading to more restaurants to open in that locality.

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3 years ago
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Papessa [141]

Answer:

Explanation:

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2. Verily, the conjoint assessment results are important in choosing assessing decisions. Ticket cost contained 38% of the examination. From the data, we can conclude fans are increasingly loath to purchase $60 tickets. By joining this ticket cost with various characteristics with higher utility scores, we can deliver a group that will be impressively all the more addressing the fans. The proportionate should be conceivable with the other evaluating decisions to make various group offers .The Portland Trail Blazers' NBA foundation was in a terrible position. Fans were spilling out the door, and the players couldn't find the bushel. The gathering wore a 22-36 record and advance managers presently ran its home, the Rose Garden after its owners had proclaimed money related indebtedness. The gathering's guide had been ended for sure. The field had been a sellout just three years earlier, and the gathering had been dear by Portland. However, starting in the 2003 season, interest began to fall pointedly by more than 15 percent by 2005. In the midst of a comparative time, 42 of 70 indulgence suites sat void in the midst of the period. More Portland crowd individuals viewed the atmosphere by then Blazers' amusements.

3. Yes there could be more than one.

By looking at the conjoint assessment and other data open from the survey, I believe that the Portland Trail Blazers the officials should offer two unmistakable packs. One being either six or ten redirections for each group. Disregarding the way that organization lean towards the six preoccupation pack, giving fans the decisions to buy for ten diversions will empower the gathering to sell more tickets. Regarding seating, they should offer the mid 300 court seats, averaging between $40-50

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son4ous [18]

The more​ debt used, the greater the leverage a company employs on behalf of its owners.

<h3>What is financial leverage?</h3>

Financial leverage exists as the usage of borrowed money (debt) to finance the purchase of assets with the anticipation that the income or capital gain from the new asset will surpass the cost of borrowing.

<h3>What is financial leverage example?</h3>

An example of financial leverage use contains utilizing debt to buy a house, borrowing money from the bank to begin a store, and bonds issued by companies.

Debt exists as an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another group, the creditor. Debt stands for deferred payment, or sequence of payments, which distinguishes it from an immediate purchase.

To learn more about financial leverage refer to:

brainly.com/question/17099821

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8 0
1 year ago
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EastWind [94]

Answer:

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7 0
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Is the owner or any bots or a co-owner on here i need to talk<br><br>If you are not DO not REPLY
timama [110]
What exactly do you need to talk about… but hey i’m here lol
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3 years ago
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