Answer:
An investor will be willing to pay $40.29 for this stock.
Explanation:
A constant growth dividend discount model will be used in this case because Hudson Corporation is expected to grow at a constant rate. The formula to be used is:
Price = Expected Dividend (Dividend of Year 1) / Required Return - Growth Rate
OR
Price = 2.82 / (.1 - .03) = 2.82 / .07 = $40.29.
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Answer:
True
Explanation:Using specific position titles in ICS helps to describe the responsibilities of the position.
Answer: Target Costing
Explanation:
Target Costing is a method of costing on a product done while it's still being produced to determine the best price at which the product can be sold that would be able to compete with price of other similar products in the market and still make profit for the company.
RTP Corp needs to apply target costing for it's new computer processor in order for it to be profitable and beat the price of other processors in the market.
Individuals differ in risk aversion because of differences in income or wealth.
- Risk aversion is the propensity of people to choose outcomes with low uncertainty over those with high uncertainty, even when the average outcome of the latter is equal to or higher in monetary worth than the more definite event. This tendency is shown in both economics and finance.
- Risk aversion is the tendency to avoid danger. A risk-averse investor is one who prioritizes money preservation over the potential for a higher-than-average return. Price volatility and investment risk are the same.
- If someone would rather take the risk and maybe receive nothing than accept a definite payment (certainty equivalent) of less than $50 (for instance, $40), they are considered to be risk averse. If they have no preference between the wager and a specific $50 payoff, they are risk neutral.
Thus the correct answer is d.
Refer here to learn more about risk aversion: brainly.com/question/8394406
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