Answer:
$3.18 (rounded to nearest cent)
Explanation:
FIrst we shall find out the price at the end of year 2:
P1 = D2 ÷ (k-g)
Where,
P1 = price a the end of first year
D2 is the dividend in second year = $0.25
k is the cost of equity = 9.2% =0.092.
g is the growth rate = 2% = 0.02
now,
P1 = $0.25 ÷ (0.092 - 0.02)
=$0.25 ÷ 0.072
=$3.4722222222 (this is estimated price after two years).
Value of share today:
= Price of share after one year × (discounting factor @9.2% for one year).
Discounting factor @9.2% for two years = 1 ÷ (1.092)
=0.91575091575
The value of share today:
= ($3.4722222222) × (0.91575091575.)
= $3.17969068
= $3.18 (rounded to nearest cent).
Answer:
The correct word for the blank space is: Ad-hoc.
Explanation:
Ad-hoc decision-making is an approach of coming up with solutions in front of cases that require taking a specialized path. Ad-hoc decision making is supported by recent, factual data that allows individuals, in most cases managers, to make an educated decision. Ad-hoc decisions sometimes are taken by committees instead of one manager alone.
Answer:
B. Mass marketing
Explanation:
Mass marketing is a strategy in which a company decides not use segments and target the whole market with the same strategy trying to reach as much people as possible. In this case, this is the approach Gary is using as he is designing a campaign using an approach that one product or service will work for everyone.
Answer:
D. Systems analysis
Explanation:
Systems analysis involves a study of the various components of a system to see if if they are efficiently meeting the needs of the business.
Processes are optimised to maximise their efficiency.
Problems that negatively affect achievement of set gloas are identified within the system, and this forms the basis for process improvement.
The type of business that Wally is proposing in the scenario above is partnership. There are three different type of partnership,they are: limited partnership, limited liability partnership and general partnership. Each of these three types provides partners with different level of liability. Thus, Wally was wrong when he said that there could be no personal liability for debts.