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Aleks [24]
3 years ago
11

announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following di

vidends will be $0.15, $0.20, $0.50, and $0.60 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 5 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 9.5 percent
Business
1 answer:
Verdich [7]3 years ago
7 0

Answer:

The maximum that should be paid for the stock today is $9.99

Explanation:

The price of the stock today can be calculated using the dividend discount model or DDM which values a stock based on the present value of the expected future dividends of the stock. The price of the stock today is,

P0 = 0.10 / (1+0.095)  +  0.15 / (1+0.095)^2  +  0.20 / (1+0.095)^3  +  

0.50 / (1+0.095)^4  +  0.60 / (1+0.095)^5  +  [ (0.60 * (1+0.05) / (0.095 - 0.05)) / (1+0.095)^5 ]

P0 = $9.99

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Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.
Strike441 [17]

Answer:

high,high

not all prices adjust quickly

below

Explanation:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too high.

Real wages decline as nominal wages are adjusted. As a result, the economy returns to full employment

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

As people observe the lower price level, the economy returns to the long-run aggregate supply curve.

According to the misperceptions theory, the economy is in a recession when the price level is below what was expected.

As people observe the lower price level, their expectations adjust.

6 0
3 years ago
Authority to conduct open market operations, which consists of buying and selling of , rests with the Committee. Reserves equal
katovenus [111]

Answer:

If the Fed conducts an open market purchase by specifically buying government securities from the Bank, banks' reserves increase and the quantity of money increases.

Explanation:

The Federal Reserve (Fed) buys and sells government securities to control the money supply. This activity is called open market operations (OPO). By buying and selling government securities in the free market, the Fed can expand or contract the amount of money in the banking system and pursue its monetary policy.

To increase the money supply, the Fed will purchase bonds from banks to inject money into the banking system.

The Federal Reserve's latest effort to calm the financial system — pumping $100 billion a day into trillion-dollar funding markets — is intended to be a temporary role, born of necessity. But it may turn out to be a significant expansion of the Fed's footprint.

3 0
4 years ago
Rochelle, the CEO of a Fortune 500 company, met with business leaders fromthe local community. Afterwards, she spent time inform
snow_lady [41]

Option D

leadership figurehead managerial role was Rochelle playing

<u>Explanation:</u>

Figurehead belongs to a character with meaningless leadership of industry but no exact power. The word figurehead is a personality with the trappings of control but not its practice.

Figurehead – As an administrator, have convivial, ritual and constitutional duties. That personality is presumed to be an origin of notion. Characters view to that one as a character with power, and as a figurehead. Figureheads steward their trios. If one requires to change or create trust in this section, begin with perception, performance, and reliability.

7 0
3 years ago
Rachel is working on a project that technically allows three activities to be done at the same time. if they were to be implemen
tester [92]
This is an example of a people constraint. A constraint is something that holds you back from completing something. In this scenario, there aren't enough people available to complete all of the projects Rachel is wanting to have completed so there is a people restraint with regards to completing activities. 
6 0
3 years ago
What are the profound and philosophical goals and benefits of a modern industrial society, according to Frederick Winslow Taylor
netineya [11]

Explanation:

The greatest objective and benefit of a modern industrial society according to Taylor was the transformation of management into a science, which should maintain the standardization of administrative processes in order to reduce production time and maintain the quality of work.

He developed the rational organization of work, a tool for researching human labor conditions, such as division of labor, specialization, standardization, supervision, salary incentives, etc., whose aim was to analyze how such factors influence productivity and the quality with which a worker perceives and performs his work.

The benefits of Taylor's management model were reduced working hours, perceived employee appreciation, reduced costs, improved organizational environment, etc.

5 0
3 years ago
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