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melomori [17]
3 years ago
14

The common stock of Water Town Mills pays an annual dividend of $1.84 a share. The company has promised to maintain a constant d

ividend even though economic times are tough. How much are you willing to pay for one share of this stock if you want to earn a 13.6 percent annual return?
Business
1 answer:
wel3 years ago
3 0

Answer:

The maximum that should be paid for a share of this stock today is $13.53.

Explanation:

The price of a company's stock which pays a constant dividend through out can be calculated using the zero growth model of the Dividend discount model (DDM). The formula for price of the stock today under DDM's zero growth model is,

P0 = D / r

P0 = 1.84 / 0.136

P0 = $13.529 rounded off to $13.53

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alukav5142 [94]

Answer:

The correct answer is nominal group technique.

Explanation:

This nominal group technique is a type of brain storming where structured meetings are being held among the members, where they will try to take out the solutions to the problems identified by them, and thus facilitating decision making. The meetings are structured here because the goal is to make sure the meetings are not dominated by few individuals and the silent members also share their thoughts and ideas with the rest of the group.

5 0
3 years ago
Assume Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects t
photoshop1234 [79]

Answer:

A) $560 million

Explanation:

First lets calculate the NPV of the cash stream by this investment,

PV Cash stream = Cash flow/ (r-g), where r = avg cost of capital and g = growth of the cash stream.

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Total initial outlay = 420 + 20 = $440 million

NPV of the project then,

NPV = 1000 - 440 = $560 million

Hope that helps.

8 0
3 years ago
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Lady_Fox [76]

Answer:

b. The pairs in which neither individual is given extra juvenile hormone is the control

Explanation:

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6 0
3 years ago
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Helga [31]
B.full service research supplier
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Vikki [24]

Answer:

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3 years ago
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