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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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Among salespeople, ________ often represent products that have few options, such as magazine subscriptions and highly standardiz
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Among salespeople,  order takers often represent products that have few options, such as magazine subscriptions and highly standardized industrial products.

<h3><u>Explanation:</u></h3>

A sales person who only aims in getting new orders and will not take any actions regarding finding new customers or increasing the existing order frequency. He will not aim in the increasing of the sales that already exists. He aims only in money making process.  

In the examples given, subscriptions of magazine and highly standardized industrial products are given. When considering these examples, the order takers will only take steps in getting new orders with a few options at their hands.  

4 0
3 years ago
Which of the following terms best represents voluntary actions that violate significant organizational norms and, in doing so, t
Oksi-84 [34.3K]

Answer:

The correct answer is (B)

Explanation:

Deviant workplace behaviour is a voluntary action of the employees that negatively affects the organisational structure and operations. It is a counterproductive behaviour in which employees do not put all the efforts into work and sometimes even withdraw. It goes against the legitimate interest and well-being of an organisation. It also affects other employees, firms and clients.

6 0
3 years ago
Which of the following is not one of the three major credit reporting agencies in the US?
vekshin1
Im pretty sure its experian

8 0
3 years ago
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In​ allentown, pennsylvania, in the summer of​ 2014, the average price of a gallon of gasoline was ​$3.68long dasha ​22-cent inc
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Answer:

The correct and labeled image of the price ceiling is attached :

Explanation:

The Price ceiling is the legal maximum price, it is ineffective and not true for the market equilibrium price. It is always less than the market price equilibrium.

The correct image on the basis of the given instruction and to the price 3.14bis attached to the answer please zoom to see the clear image.

7 0
3 years ago
To make a batch of 800 units, it is estimated that 120 direct labor hours are required at a cost of $12 per hour. Direct materia
Anna [14]

Answer:

It is more convenient to buy the product from an outsource supplier.

Explanation:

Giving the following information:

To make a batch of 800 units, it is estimated that 120 direct labor hours are required for $12 per hour. Direct material costs are estimated at $1,800 per batch. The overhead costs are calculated based on an overhead rate of $7.50 per direct labor hour. The item can be readily purchased from a local vendor for $5 per unit.

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Unitary variable cost= 4,140/800= $5.18

Buy= 5

It is more convenient to buy the product from an outsource supplier.

6 0
3 years ago
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