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dybincka [34]
3 years ago
7

Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the gro

wth rate falling off to a constant 4.5 percent thereafter. If the required return is 10.5 percent and the company just paid a dividend of $2.85, what is the current share price?
Business
1 answer:
mel-nik [20]3 years ago
3 0

Answer:

The current share price is $82.85

Explanation:

D1 = (2.85*1.25)

    = 3.56

D2 = (3.56*1.25)

     = 4.45

D3 = (4.45*1.25)

     = 5.566

Value after year 3 = (D3*Growth rate)/(Required rate - Growth rate)

                              = (5.566*1.045)/(0.105 - 0.045)

                               = $96.95  

current price = Future dividend and value*Present value of discounting factor  

= 3.56/1.105 + 4.45/1.105^2 +5.566/1.105^3 + $96.95/1.105^3

= $82.85

Therefore, The current share price is $82.85

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In todayâs workplace, teams are a vital force, and the majority of business professionals must collaborate on the job. The trend
Sphinxa [80]

Answer:

c) response more quickly

Explanation:

Teamwork refers to working in collaboration towards attainment of a common goal. Teamwork leads to synergistic gains as the collective group work exceeds the work carried out individually.

Following points highlight the importance of team work in an organization:

  • Promotes problem solving skills: Working in a team helps individual develop problem solving skills.
  • Improved coordination and communication: Teamwork leads to better familiarity and thus improves coordination.
  • Increased efficiency and quicker responses: Teamwork leads to synergistic gains as collective effort exceeds individual effort and also expeditious performance.  
  • Promotes learning: One to many interactions among team members promotes learning
  • Builds a sense of belonging: Since all team members are united by one common goal, teamwork builds a sense of belonging w.r.t organization.
5 0
3 years ago
Comfort Cords produces curtain cords. In the process of manufacturing those cords, it also produces hair ties which are sold sep
hoa [83]

Answer:

$609,000

Explanation:

The revenue in June for  Comfort Cords is the sum of the revenue from cords and hair ties.

The revenue from each is the product of the unit selling price and the quantity sold.

= 50000 * $12 + 9000 * $1

= $600,000 + $9000

= $609,000

3 0
3 years ago
What do the underlying values in your mission statement tell you?
wariber [46]
A should be your answer
7 0
3 years ago
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Kim's Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferr
iVinArrow [24]

Answer:

a. .4223

Explanation:

Kim's Bridal shoppe has common stock, bonds and preferred stock in its capital. To identify capital structure weight of common stock we calculate value of each capital.  

Common Stock : 10200 shares * $36  = $367,200

Preferred Stock : 215 shares * $87 = $18,705

Bonds Outstanding : 520 Bonds * $1,000 * 93% of par = $483,600

Total capital : $367,200 + $18,705 + $483600 = 869,505

Common stock share : $367,200 / $869,505 = 0.4223

6 0
3 years ago
Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its products in a
Alexeev081 [22]

In this scenario, Yater's Inc. has decided to use (B) one-brand-name strategy.

<h3>What is a co-branding strategy?</h3>
  • Co-branding is a marketing tactic in which various brand identities are applied to a product or service as a result of a strategic partnership.
  • Co-branding (or "cobranding"), often known as a brand partnership, refers to a variety of branding alliances that typically involve the brands of at least two businesses.
<h3>What is a one-brand-name strategy?</h3>
  • When employing a single-brand approach, a business targets only one particular market segment with each of its brands.
  • Each brand has its own distinct "personality," is handled separately, and is distinctly differentiated from the rest of the company's brands.
<h3>What is a transactional marketing strategy?</h3>
  • A business technique known as "point of sale" transactions is called transactional marketing.
  • Instead of focusing on forging a relationship with the customer, individual sales are being optimized for efficiency and volume.

Therefore, in this scenario, Yater's Inc. has decided to use (B) one-brand-name strategy.

Know more about brands here:

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4 0
2 years ago
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