Answer:
$10.82%
Explanation:
The computation of stock value is shown below:-
First we need to find out the expected dividend for computing the stock value
So, Expected dividend = $1.42 × (1 + 1.3%)
= $1.44
Now, Stock value = Expected dividend ÷ (Required return - Growth rate)
= $1.44 ÷ (14.6% - 1.3%)
= $1.44 ÷ 13.3%
= $10.82%
So, for computing the stock value we simply applied the above formula.
Answer:
d. the business judgment rule will not apply.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
In Business management, if a court of competent jurisdiction determines that a manager's corporate decision amounted to self-dealing i.e putting his or her own interests first, the business judgment rule will not apply.
Generally, in order for the business judgement rule to apply, it is expected or required that a manager should act in the best interest of a corporation.
Answer: The control the company has over Ike's job details.
Explanation:
The Home-baked bread company and Ike share something in common which is the fact that Ike is an employee of the company and also he is to be paid by the company.
As an employee of the bread company, they still control Ike's job role and can decide to vary or maintain his current job role depending on what the company desires to achieve. Also if he doesn't meet up to some target he can still be laid off, due to the fact that he is still on his trial period.
Answer: $450 profit
The investor exercised the right to buy the stock for 60 and can sell the stock in the market for 68 for an $8 per-share gain.
The gain of 8 minus the premium of 3.50 gives the investor a profit of 4.50
(4.50 Ă— 100 = $450).
Answer:beta
Explanation:Beta is a measure of a stock's volatility in relation to the overall market.
Beta is a component of the capital asset pricing model (CAPM), which is used to calculate the cost of equity funding. The CAPM formula uses the total average market return and the beta value of the stock to determine the rate of return that shareholders might reasonably expect based on perceived investment risk. In this way, beta can impact a stock's expected rate of return and share valuation.
Beta is calculated using regression analysis. Numerically, it represents the tendency for a security's returns to respond to swings in the market. The formula for calculating beta is the covariance of the return of an asset with the return of the benchmark divided by the variance of the return of the benchmark over a certain period.
