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castortr0y [4]
3 years ago
7

A stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock

is in equilibrium. a. The stock's price one year from now is expected to be 5% above the current price. b. The stock's dividend yield is 5%. c. The stock's required return must be equal to or less than 5%. d. The expected return on the stock is 5% a year.
Business
1 answer:
Llana [10]3 years ago
7 0

Answer:

a. The stock's price one year from now is expected to be 5% above the current price.

Explanation:

Under gordon model:

\frac{divends}{return-growth} = Intrinsic \: Value

If we calculate the value of the stock for the year after that:

\frac{divends x (1 + growth)}{return-growth} = Intrinsic \: Value

to calculate the value of the increase we divide next year over current year.

\frac{divends(1+growth)}{return-growth} \div \frac{divends}{return-growth}\\\\\frac{divends(1+growth)}{return-growth} \times\frac{return-growth}{divends}\\\\\frac{divends(1+growth)}{divends}= 1+ growth

We have demostrate that next year stock should increase by 1 + growth so statement c is correct.

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Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? E
ArbitrLikvidat [17]

Answer:

Net profit is more important to consider because it accounts for all the costs associated with making and selling the product and it includes the operating expenses that are excluded from gross profit. Gross profit is the profit made after deducting costs associated with making and selling its products, or the costs associated with providing its services.

6 0
3 years ago
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Whether a business makes a profit or loss is determined by the difference between the total amount of money a business takes in,
elena55 [62]

Answer:

Revenue/Income; Expenses

Explanation:

Profit or Loss is determined as the difference between the revenue made by a business (also known as its income), and the expenses spent in the process of generating that revenue.

Profit/Loss = Revenue - Expenses

If the difference is positive, the outcome is a profit. If the difference is negative, the outcome is a loss.

5 0
3 years ago
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $47,8
Gre4nikov [31]

Answer:

$15,450

Explanation:

The computation of the common fixed expenses is shown below:

We know that,

Net operating income = Contribution margin + Sales × contribution margin -  traceable fixed expenses - common fixed expenses

$35,700 = $47,800 + $235,000 × 25% - $55,400  - common fixed expenses

$35,700 = $47,800 + $58,750 - $55,400  - common fixed expenses

$35,700= $47,800 + 3,350   - common fixed expenses

So, the common fixed expense would be $15,450

8 0
3 years ago
Research proves that heterogeneous groups are infinitely more productive and creative than homogeneous groups. Describe environm
exis [7]

Explanation:

Homogeneous groups are those composed of people with the greatest number of similarities possible, such as experiences, educational level, opinions and skills. An environment that can be found in homogeneous groups is in work teams, where the members have educational levels and skills as similar as possible to achieve goals and objectives.

A heterogeneous group, on the other hand, is made up of different people regarding different variables, such as culture, opinions, languages, life experience and several others. This type of group is common to find in higher education institutions.

Research shows that heterogeneous groups are more productive and creative, and this refers to the social plurality in which they are found in this group, since having different types of people with different cultures, experiences and skills, can reinforce the dynamics of the group and the productivity.

It is important for the human being to be in contact with different people, as there is mutual enrichment between the exchange of experiences. Heterogeneous groups are increasingly common in a globalized world, so we must seek to expand the individual view and try to exercise activities where it is possible to contact different people, this increases individual perspectives, knowledge and mutual respect

4 0
2 years ago
A multinational organization is defined as a business that
kherson [118]

Answer:

Explanation: A Multinational Organisation is an organisation that has an office in its country of origin as well as in at least one branch in another country. They control all the activities in the country of origin as well as in the other offices in other countries.

6 0
3 years ago
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