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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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Explanation:

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This can be the demand supply change as well as the demand cost and the production cost of the production that must be taken into account before we begin to find a relation between their elasticity.

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3 years ago
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gregori [183]

Answer:

The correct Choice here is A)

Explanation:

360-degree feedback is a performance evaluation/management technique that provides each worker the opportunity to receive feedback about their performance from senior colleagues and four to eight peers, reporting staff members, co-workers, and customers.    

If it is true that the salespeople of the company travel extensively and are expected to <em><u>work independently</u></em> <em><u>without supervision</u></em>, then <u>it is important to see from the customers eyes what happens when the Sales People go out.</u>

This information will provide information with respect to what the Sales people are doing right and what they aren't getting done.

Armed with these information, Prestige Pergasus can in the next financial year work it's way into even more profits IF following from the feedback they:

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Cheers!

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Answer:

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If the company uses the few balanced scorecard​ that would leads to not balancing the desired outcomes with its performance drivers that means they are not able to matched with each other outcomes or results                    

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The statement, Japan generally runs a significant trade surplus because of the structural barriers against imports into Japan, is true.

As Japan's savings rate is high relative to Japan's domestic investment, Japan generally runs a trade surplus. Thus, the result is high net capital outflow which is matched by high net exports, resulting in a trade surplus.

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Hence, in 2019, Japan reported the biggest trade surpluses with different countries.

To learn more about trade surplus here:

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