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pav-90 [236]
3 years ago
8

As an investor you have a required rate of return of 12 percent for investments in risky stocks. You have analyzed three risky f

irms and must decide which (if any) to purchase. Your information is Firm ABCCurrent dividends $1.00 $3.00 $7.50Expected annual growth rate in dividends 7% 2% (-1%)Current market price $23 $33 $60aWhat is your valuation of each stock using the dividend-growth model?
Business
1 answer:
Darina [25.2K]3 years ago
5 0

Answer:

Explanation:

Expected annual growth rate in dividends 7%

Dividend growth Model= Pv=Do(1+g)/Ke-g

present value = 1(1+7%) / 12%-7%

present value =1.07 /5%

present value =21.4

Expected annual growth rate in dividends 2%

Dividend growth Model= Pv=Do(1+g)/Ke-g

present value = 1(1+2%) / 12%-2%

present value =1.02 /10%

present value =20.4

Expected annual growth rate in dividends -1%

Dividend growth Model= Pv=Do(1+g)/Ke-g

present value = 1(1+(-1)%) / 12%-2%

present value =0.99/10%

present value =7.69

You might be interested in
You are a network engineer for a midsized government contractor working on a project for a national government lab. Your network
vaieri [72.5K]

Answer:

In creating a Bill of Material for the infrastructure and tools for the lab, we need to create certain test plans, by having to test applications anf devices that will work in a new environment

Infrastructures devices in the IPv6 lab is needed such as switches, routers, firewalls.

End systems are important with various operating systems and application that is hosted in a fictional network.

At the end of the day, it might be costly, but durability is rest assured on the long period of time.

Explanation:

Solution

By setting up a IPv6 and converting labs from IPv4 to IPv6 is not only tasking, but we need to create or design certain test plans.

We  test how applications and devices will work in a new environment and this set up will be like a real world environment  (scenario)

This IPv6 lab will need infrastructure devices like routers, firewalls, routers, switches.

With the addition of infrastructure devices it also needs end systems with various operating systems. and  applications that are hosted in the operational network

All these things will cost but  the durability is assured on the long period.

Setting up a full lab set up may costly but it provides an environment where we can test application and infrastructure safely.  this type of system testing will give insights to how the system will function when we allocated operationally . this will helps to reduce cost  and if we want test these for multiple labs we can develop a tunnel.

Tunnel Is nothing but a native common thing that connects all the labs that want to initiate an IPv4.

Because of time and cost both will decrease and infrastructure durability increases and performance .

6 0
3 years ago
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variabl
o-na [289]

Answer:

Cost Advantage of different locations:

b. $20,000

Phoenix certainly had a cost advantage over Atlanta and based on this factor, it should be chosen for the new plant instead of any other city.

Explanation:

a) Total Costs of different locations:

                        Atlanta       Phoenix

Fixed Cost      $80,000     $140,000

Variable cost  400,000      320,000

Total Costs  $480,000    $460,000

b) Variable costs

                                   Atlanta       Phoenix

Annual Demand        20,000        20,000

Variable cost/unit        $20              $16

Total variable cost  $400,000  $320,000

c) Cost Advantage is the competitive edge which location (or company) can have over another through reduced production or marketing costs or both so that it can offer cheaper prices or use excess profits to bolster promotion or distribution.   In this case, the comparison is on the total cost, which is made of variable and fixed costs.

4 0
3 years ago
Which of these terms is most closely related to tradeoffs?
ohaa [14]
Hello!

You forgot the alternatives!

incentives 
<span>margin </span>
<span>markets </span>
<span>scarcity
</span>
The term that is most closely related to trade-off, from the list above, is: scarcity. Scarcity is the condition that moves the trade-offs, it determines the quantity of each product you need or have. So, for example, if you need a product that you don't have enough and another that you have in excess, you can exchange it with someone that have interest in your product and has the one that you need.

Hugs!
7 0
3 years ago
Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October:
Alex73 [517]

Answer:

Equivalent units of Production = 46500 & 37800

Explanation:

At the start of October, Clonex Labs inc, started with 385000 units into production and at the end of the month it had completed 409000 units this means the difference between 409000 and 385000 is the number of units transferred to the next department (i.e 24000), now that we have computed this, we find ending work-in-process as follows:

Clonex Labs, Inc.                                           Materials   Conversion

Units transferred to the next department:    24000        24,000

Ending work in process :

Materials : 30000x75%                                  22500

Conversion : 30000x46%                                                    13800

                                                                      -------------        -------------

Equivalent units of Production =                    46500           37800            

                                                                     =========        ========  

3 0
3 years ago
If you are an HR Manager , which among these rating sources do you believe in the most crucial?
kupik [55]

Answer:

behaviour

Explanation:

his\her behaviour to collegues matters more for good environment in business

3 0
3 years ago
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