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Mumz [18]
3 years ago
7

Dee's made two announcements concerning its common stock today. First, the company announced that the next annual dividend will

be $1.58 a share. Secondly, all dividends after that will decrease by 1.15 percent annually. What is the value of this stock at a discount rate of 15.5 percent?a.$9.49 b.$10.10 c.$9.82 d.$10.51 e.$11.01.
Business
1 answer:
anzhelika [568]3 years ago
5 0

Answer:

The price per share today is a.$9.49

Explanation:

The value of the stock today can be calculated using the constant growth model of the DDM. The constant growth model is applicable when dividend are growing at a constant rate forever. the growth rate here is negative thus g will be -1.15%

The formula for Constant growth model is,

Price = D1 / r - g

Using the formula, we calculate the price per share today to be:

Price = 1.58 / (0.155 + 0.0115)

Price = $9.49

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Answer:

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Explanation:

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3 years ago
David has just joined a new company. His employer offers a number of different insurance policies as one of its employee benefit
kumpel [21]

Answer:

Health; automobile.

Explanation:

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8 0
3 years ago
Read 2 more answers
Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The diff
Afina-wow [57]

Answer:

Case 1 = $420 million

Case 2 = $280 million

Case 3 = $350 million

Explanation:

As per the data given in the question,

Annual value by one distributor = $420 million per year

Annual value by two distributor = $560 million per year

Case 1)

The marginal value of first distributor is more than second  

So when negotiating the value, it is = $560 million - $420 million = $140 million

and this value would be distribute between both. so each will get = $140 million / 2 = $70 million

and you would expect to capture $420 million of this deal

Case 2)

As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million

Case 3)

In this case marginal amount of contact = $560 million - $140 million = $420 million

and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered  

and you would expect to grab the remaining amount = $560 million - $210 million  

= $350 million

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Answer:

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Sever21 [200]

trade unions are those who get together in barganing for there rights

if there are more trade unions the barganing power is high, as he/she can't refuse when a whole lot of people are striking.

7 0
3 years ago
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