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Kipish [7]
3 years ago
14

Krustyburger just paid a dividend of $2 and has a required return of 15%. Which of the following equations represent's today's v

alue of this stock if Krustyburger expects a 10 percent constant growth rate in dividends? a. $2(1.10)/0.15 b. $2/[0.15 - 0.10] c. $2/0.15 d. $2(1.10)/[0.15-0.10]
Business
1 answer:
Neko [114]3 years ago
8 0

Answer:

d. $2(1.10)/[0.15-0.10]

Explanation:

The formula to compute the today value of the stock by using the Gordon model is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2 + $2 × 10%

= $2 + 0.2

= $2.2

And, the required rate of return is 15%

Plus the growth rate of return is 10%

So, the today value of the stock is

= $2.2 ÷ (15% - 10%

= $44

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Fred Arden is tried in a criminal court and found innocent of the charge of theft. Shawn Finister, the victim of the alleged cri
Gekata [30.6K]

Answer:

The civil court filing must be dismissed because of the constitutional right against double jeopardy.

Explanation:

Double jeopardy is the legal concept that protects a person from being tried again for the same or similar charge following his aquittal or conviction.

Fred Arden has been tried in criminal court and found innocent. Shawn is trying to sue him again for the same act in civil court.

This is against the rule of double jeopardy.

6 0
3 years ago
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. W
frosja888 [35]

Available Options Are:

a. Cost of Goods Sold

b. Net Profit Margin

c. None of these

d. Asset Turnover

Answer:

Option B. Net Profit Margin

Explanation:

The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.

Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.

Option D is incorrect because asset turnover formula is:

Asset Turnover = Sales / Total Assets

The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.

3 0
4 years ago
Viral promotion involves: Group of answer choices sending a pre-written set of messages to customers or prospects over time. off
marta [7]

Answer:

leveraging a firm's customers to promote a product or service

Explanation:

Viral promotion is a form of marketing in which a good or service is promoted using a firms' social network,

For example, if a firm is about to launch a new product and it wants to do a viral promotion, it would make use of the firms existing customers to promote the good

4 0
3 years ago
Question 1 (10 points) You are faced with a problem. You want to go to the movies with your friends and see the latest action fl
Ray Of Light [21]

The dilemma is to decide whether to ignore mother's orders or comply with them in this situation.

<h3>What is Opportunity Cost?</h3>

Opportunity Cost refers to the losses incurred on leaving the other possible alternatives in the decision making and choosing the one. It is the value of the best alternative choose in the process of the decision making.

In the Above situation,the individual would enjoy with friends if he goes to watch the movie However it can lead to trouble with his mother.

However, if individual does cleaning of the lawn; the price would be the fun you would have to forgo.

The best course of action would be to obey your mother because the consequences of doing otherwise are much worse.

Learn more about Opportunity Cost here:

brainly.com/question/12121515

#SPJ1

7 0
2 years ago
Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Conster
Lilit [14]

Answer:

correct option is C. $2.00

Explanation:

given data

currently pays = $8 an hour

CPI  currently = 160

old = 128 year

to find out

firm should increase the hourly wages of its workers by

solution

we get here first rate that is express as

rate = \frac{CPI*currently\ pay}{time}     ...........1

rate = \frac{160*8}{128}

rate = $10

So Increase is here as  = $10 - $8

increase by = $2

so correct option is C. $2.00

4 0
3 years ago
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