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oee [108]
3 years ago
8

torico Co. just paid a dividend of $1.85 per share. The company will increase its dividend by 24 percent next year and will then

reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 14 percent, what will a share of stock sell for today
Business
1 answer:
larisa [96]3 years ago
5 0

Answer:

The stock price is $33.26

Explanation:

<u>Dividend of the year</u>

D1 = 1.85 * 1.24

D1 = 2.294

D2 = 2.294 * 1.18

D2 = 2.70692

D3 = 2.70692 * 1.12

D3 = 3.0317504

D4 = 3.0317504 * 1.06

D4 =  3.213655424

Price at year 4 = 2.70692 * 1.12 * 1.06^2/(14%-6%)

Price at year 4 = 42.58093437

Current price = 2.294/1.14 + 2.70692/1.14^2 + 2.70692*1.12/1.14^3 + 2.70692*1.12*1.06/1.14^4 + 42.58093437/1.14^4

Current Price = $33.26

So, the stock price is $ 33.26

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You just purchased an existing business that produces solar panels according to the following production function:
frez [133]

Answer:

<u>$50</u>

<u>Explanation</u>:

In the production function, Q = K0.5L0.5,

K denotes the fixed input in the short run.

First, we calculate the total cost:

Cost of Capital= 25 x $1 = $25

Cost of Labor (for a start 25 workers are used)= 25 x $1 = $25

Total= $50

Since the price of the solar panels is $100, substrating from the total cost $50 (100-50) we get $50 profit per unit of solar panel.

4 0
3 years ago
Aden is a small engine mechanic who earns a regular hourly rate of $15.68. For overtime, he earns time and a half on Saturdays a
garri49 [273]

Answer:

Total pay is : $909.44

Explanation:

$15. 68/2 = 7.84 times 8 = 627.20

15.68 times 2 = 31.36 times 7 = 219.52

$627.20 +$ 62.72 + $219.52 = $ 909.44

3 0
3 years ago
When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and the
Alekssandra [29.7K]

Managers are involved in controlling when they conclude that an organization is not making adequate progress toward reaching its goals and objectives and develop remedial actions.

  • Control is a management activity that aids in the detection of problems and the implementation of corrective actions. This is done to reduce deviation from standards and guarantee that the organization's overall goals are met as desired.
  • Controlling is the process of assessing an organization ’s objectives toward its objectives. It comprises monitoring the implementation of a strategy and correcting errors from that plan.
  • Control management is a process that helps your firm spot problems, make adjustments, and keep project management on track. Control management increases your firm's chances of achieving its goals.
  • Controlling is one of the most important management duties of a goal-oriented organization. Management control approaches are classified into two types: modern and classic control strategies. Feedforward, feedback, and concurrent controls are examples of management control techniques.

Thus the correct answer is controlling.

To learn more about controlling, refer: brainly.com/question/28109846

#SPJ4

7 0
1 year ago
công ty A nhập 5000 tấn gạo với giá trị lô hàng là 931000 USD. Tỷ lệ phí bảo hiểm aps dụng cho lô hàng là 5%. Tính số tiền bảo h
lana66690 [7]
<h2>Answer:</h2>

Forse la risposta è 30% scusa se è sbagliata

5 0
3 years ago
Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several othe
mariarad [96]

Answer:

  • False
  • True
  • True
  • False

Explanation:

First one is false because diversification reduces risk because it divides the risk amongst different securities. The portfolio risk will therefore be lower than the average of all stocks' standard deviations.

Second one is true because unsystematic risk is risk that will come with the type of stock or security purchased. It is usually referred to as diversifiable risk because using negatively correlated stocks can help diversify this risk.

Third one is True because the portfolio's risk when diversified is indeed likely to be smaller than the average of all stocks' standard deviation.

Fourth one is false because portfolio risk is <em>reduced</em> if stock that are negatively correlated are put into a portfolio because it means that when one stock is not doing so well, the other being negatively correlated, will be doing fine.

3 0
3 years ago
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