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RoseWind [281]
3 years ago
11

JRN Enterprises just announced that it plans to cut its dividend from $2.50 to $1.50 per share and use the extra funds to expand

its operations. Prior to this announcement, JRN's dividends were expected to grow at 4% per year and JRN's stock was trading at $25.00 per share. With the new expansion, JRN's dividends are expected to grow at 8% per year indefinitely. Assuming that JRN's risk is unchanged by the expansion, the value of a share of JRN after the announcement is closest to:
Business
1 answer:
Zielflug [23.3K]3 years ago
4 0

Answer:

P0 = $25

Explanation:

To calculate the value of JRN after the announcement, we will use the constant growth model of DDM as the dividends are expected to grow at a constant rate. The formula for price under this model is,

P0 = D0 * (1+g)  /  (r - g)

Where,

  • D0 is the dividend today
  • r is the required rate of return
  • g is the growth rate in dividends

As the risk will remain the same, so we can say that the r or required rate of return will remain the same. To calculate r, we will input the pre announcement values in the formula above.

25 = 2.5 / (r - 0.04)

25 * (r - 0.04)  =  2.5

25r  -  1  = 2.5

25r = 2.5 + 1

r = 3.5 / 25

r = 0.14 or 14%

Using the same formula for post announcement values, we calculate teh price to be,

P0 = 1.5 /  (0.14 - 0.08)

P0 = $25

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If you are an engineer working for a state highway department with the responsibility for overseeing and regulating construction
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8 0
1 year ago
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8 0
3 years ago
Joe Donney operates a roller skating center. He has just received the monthly bank statement at August 31 from Citizens National
dlinn [17]

Answer:

Donney actually have $1,577 at August 31, 2014

Explanation:

Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps

Step 1

<em>Update the Cash Book (Bank Column) Balance</em>

<u>Cash Book (Bank Column)</u>

Debit :

Balance as at August 31                     $1,620

Rent collection                                      $375

Total                                                    $1,995

Credit :

Service charge                                         $9

Dishonored Checks                              $137

Printing Charge                                      $20

Error : Understatement                        $252

Balance as per updated CB              $1,577

Total                                                    $1,995

Step 2

<em>Prepare a Bank Reconciliation Statement</em>

<u>Bank Reconciliation Statement as at August 31</u>

Balance at Bank as per updated Cash Book       $1,577

Add Unpresented Checks                                       $756

Less Lodgements not yet credited                     ($1,695)

Balance as per Bank Statement                             $638

Conclusion :

Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.

3 0
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Answer:

Communication channels are the channels with which information are passed from one to person to another. Messages and ideas are exchanged using these channels to complete the communication process.

Explanation:

Types of communication channels are:

Email

Social media

TelephoneTelevision

Radio

Face-to-face communication

Oral and written communication

Verbal and non-verbal communication.

Communication can be through the use of words or without words, such as the use of signs and gestures. Communication can take place physical and otherwise.

Barriers in communication this are the things that create disturbances in sent messages and thereby causing a misunderstanding between the sender and receiver.

Barriers are:

Poor communication skills: when an individual communication skill is weak, such individual lacks the confidence to communicate effectively in front of others.

Noise disturbance: Noise disturbance is a barrier that hampers the clarity of a message.

Language barriers: The language barrier occurs when there is diversity in an organization workforce. languages or accents differ fromLanguage to language same as cultures.

Perception differences: This occurs when the senders point of view and receivers doesn’t match up which results in lack of understanding.

Wrong pronunciation of words and poor usage of vocabulary: By not pronouncing words accurately and correctly, wrong message might be passed.

the communication channels in a professional settings are:

Formal communication: the use of written letters and e-mails to colleagues, senior management, or the exchange of thoughts through official presentations before board members.

Informal communication: this kind of message channel exist between acquittances people we are familiar with. Any style and words not suitable in formal communication mode can be used here.

Barriers at the professional level are:

Organizational Hierarchy: due to the long chain of hierarchy or it passes through this alters the original message.

Lack of knowledge of non-verbal communication: Body language, gestures and postures are essential factors of communication as a wrong gestures and postures communicate false messages.

Low confidence level: For am individual to be able face a crowd and pass effective communication he needs his confidence level high.

Clarity in the message: The message been passed must be clear, concise and simple. Free of grammatical and spelling errors.

High confidence level: a confident speakers communicates easily, which his message easy to grasp and understand.

Feedback: for a communication process to be complete the receiver must give a feedback.

Good communication skills:

1. Practicing like they say practice makes perfect.

2. Proper pronunciation of words.

6 0
3 years ago
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