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dezoksy [38]
3 years ago
6

Each of two stocks, A and B, is expected to pay a dividend of $7 in the upcoming year. The expected growth rate of dividends is

6% for both stocks. You require a return of 12% on stock A and a return of 12% on stock B. Using the constant-growth DDM, the intrinsic value of stock A _________.a. will be higher than the intrinsic value of stock Bb. will be the same as the intrinsic value of stock Bc. will be less than the intrinsic value of stock B
Business
1 answer:
spin [16.1K]3 years ago
5 0

Answer:

B

Explanation:

Intrinsic value of the stock using the constant growth DDM model = D1 / r - g

D1 = dividend in the following year

r = required return

g = growth rate

Since the growth rate and required rate and growth rate of both stocks are the same, the intrinsic value of both stocks would be equal to :

$7 / 0.12 - .06 = $116.7

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The objectives of U.S. monetary policy are to achieve​ ______.
SSSSS [86.1K]

Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth.  If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

4 0
3 years ago
Which of the following is true of using direct marketing channels?
podryga [215]

Answer:

c

it reduces the number of channels example, by using email and short message servicing

7 0
3 years ago
Nelson Industries makes widgets using a two-step process that involves machining first and assembly second. In the Machining Dep
alexira [117]

Answer:

12,600

Explanation:

Concept of Equivalent units of production measures the number of units in terms of percentage completion in input elements of the process.

<u>The equivalent units of production for materials</u>

Note : all materials are issued at the beginning of the process, therefore materials are 100% complete in both Widgets transferred out and Ending widgets.

Calculation :

transferred out (8,600 × 100%)     = 8,600

ending inventory  (4,000 × 100%) = 4,000

total                                                 = 12,600

Therefore,  the equivalent units of production for materials in the Machining Department is 12,600.

4 0
3 years ago
Elise is the manager in the finance department for a company that competes in a service industry. If her company is like most co
nata0808 [166]

Answer:

This statement is False

Explanation:

One of the characteristics of the modern day service industry is Division of Labor. Thus, Elise would not leave almost all aspects of human resources functions to specialists. This is the decision of a human resources manager and not Elise who is the finance manager. The jurisdiction of her duty and reporting line does not allow such to happen.

4 0
3 years ago
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars
Virty [35]

Answer:

The Expected Awareness level for the next year will be 58%

Explanation:

In order to calculate the Expected Awareness level, first we have to calculate opening awareness level using the following formula:

Opening awareness level=Closing level−Decrease in awareness per year

                                          =80%−(1/3×80%)

                                          =80%−26.4%

                                          =53.6%

After having calculated the Opening awareness level we can calculate the Expected Awareness level for next year with the following formula:

Expected Awareness level=Opening awareness level+Increase in level

                                             =53.6%+5%

                                             =58%

​

​

7 0
3 years ago
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