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Viktor [21]
4 years ago
7

Bensen Co. paid a dividend of $5.25 on its common stock yesterday. The company's dividends are expected to grow at a constant ra

te of 8.5% indefinitely. The required rate of return on this stock is 15.5%. You observe a market price of $78.50 for the stock. Should you purchase this stock
Business
1 answer:
emmainna [20.7K]4 years ago
3 0

Answer:

I would purchase the share as he actual value is more than its current market price

Explanation:

expected dividend in perpetuity =present dividend *growth rate

present dividend is $5.25

growth rate is 8.5%

expected dividend =$5.25*(1+8.5%)

expected dividend=$5.70

in determining the actual value of the stock we the stock price formula below:

price=expected dividend/(expected return-growth rate)

price=$5.70/(15.5%-8.5%)

price=$81.43

In actual terms the stock should be selling for $81.43, hence a buy decision at $78.50 would be a welcoming as the stock is selling beyond its real worth.

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All groups are teams. b. Groups are teams with a high level of task interdependence. c. Unlike teams, groups are associated with
Yuri [45]

Answer:

The correct answer is d. Some groups are just people assembled together in the same physical area.

Explanation:

There may be times when there is a very large group of people who concentrate because they coincide in a place and time, which does not mean that they necessarily share the same ideals. It is enough with a confirmation question to realize what it is that they are gathered.

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3 years ago
Xunder the original constitution, congress could not ban the slave trade until ________.
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The Original Constitution meant that Congress could not ban the slave trade until 1808.

<h3>When did Congress ban the slave trade?</h3>

In the original Constitution of the United States, Northern states wanted to ban the slave trade but the South resisted.

They then came to a compromise where Congress would only ban the slave trade in 1808. This was contained in the Constitution in Article 1, Section 9. The domestic slave trade in the United States continued however.

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7 0
2 years ago
Discuss why two people with similar abilities may have very different expectancies for performing at a high level.
inessss [21]

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Because they're two different people

Explanation:

The main and major reason why, is the obvious one. The first reason that comes to the mind.

Because they are two different people. Different people have different goals, hopes and aspirations. And even those that share them go through different paths while carrying them out. The minds of the two individuals are not the same, and despite the fact that they have similar abilities, they might not necessarily get the job done on time because of other commitments either of them have. Even if they both have none, there's always a distinguishing factor, and that will always trump, thus making them have different expectancies for performing at a high level.

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3 years ago
A U.S. company (like Jelly Belly) makes its gourmet jelly beans in the United States, and sugar is about half the cost of produc
Svetradugi [14.3K]

Answer: Highly doubtful.

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U.S. sugar protection policies save producers in the U.S. billions of dollars so those companies continually lobby for the government to keep up the policies.

A company such as Jelly Belly is not influential enough to fight off the various sugar interests unless there are other players like Jelly Belly in the game. The text makes no mention of them however so it must just be Jelly Bean and they do not have the influence to get the government to reverse policy.

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3 years ago
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