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VARVARA [1.3K]
3 years ago
10

Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend

has been set at $2.20 a share. Secondly, the company announced that all future dividends will increase by 5% annually. What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return
Business
1 answer:
Agata [3.3K]3 years ago
6 0

Answer:

44

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

2.2 / 0.1 - 0.05 = 44

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Tidewater, Inc., requires its job applicants to take a test that measures their vocabulary and numerical skills. For specific jo
Nataly_w [17]

Answer: performance

Explanation:

When the job applicants for specific jobs are told to perform a sample of the job, this implies that the company is using a performance test.

Performance test simply refers to a test that requires the individuals partaking in it to perform an activity using their skills, ability and knowledge.

6 0
3 years ago
Market efficiency Financial theorists have identified two different types of efficiency in financial markets. The first, informa
inna [77]

Answer: 1. Large

2. Abnormal

3. True

Explanation:

1. At any level, a market’s informational efficiency is likely to be stronger when there is a <u>Large</u> number of market participants.

When there is a larger number of participants, this means that there is a large number of people able to acquire and analyse information about securities and the financial markets.

As a result of this, information is more wide ranging and easily available such that they market has very good information efficiency.

2. The potential for a security to generate <u>Abnormal</u> returns is what generates a profitable investment.

When a security is potentially able to generate abnormal returns, there is a chance of making very profitable returns if those returns are higher or lower than estimated. When returns are estimated, these are usually reflected in the market price already because they are expected, when the returns are better or worse than expected though, this means that the prices were wrong therefore giving a chance of a positive gain on the security.

3. True.

Information efficiency is very important in the market. It can mean the difference between the market being manipulated and used for unfair gains and the market being used fairly by all. Information efficiency gives every market player the same Opportunity to find out about a security and act accordingly instead of select people taking advantage of hidden Opportunities.

5 0
3 years ago
If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the
Anestetic [448]

Answer:

If the lender rate decline he will be worst of due to consumer buying behavior.

Explanation:

  • Lenders are creditors and not all creditors are leanders. During a decline in the interest rates goes down and borrowing gets cheaper. The leander will be worse after the interest rates decline. If the interest rate rises or changes the lender may get higher rates.
4 0
3 years ago
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi
UNO [17]

Answer:

Units transferred out = 760

Explanation:

If we assume that all units are completed in the order of arrival i.e (FIFO), then the units transferred out is the sum of the opening inventory and the units started and completed in the period. The units started and completed in the period is referred to fully-worked.

Fully worked is computed as the units started in the period less the closing inventory .

Fully- worked = 800 - 240 = 560

The units transferred out = opening inventory + Fully-worked

                                          = 200 + 560 = 760

Units transferred out = 760

Note we assumed that the units of the inventory( started last period i.e January) would be worked on first in the month of February  before any other units. So, it is assumed completed by the end of February

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Clean up the ocean by picking up all the trash in the water
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