Help!!!!! please give an explanation!

Common stock valuelong dash—Variable growth Personal Finance Problem

xenn [34]

Answer:

$24.18

Explanation:

Dividend for year 0 = $2.2

Dividend at year end 1 = $2.2

Dividend at year end 2 = $2.2(1 + .05) = 2.31

Dividend at year end 3 = $2.31 (1 + .05) = 2.4255

Dividend at year end 4 = $2.4255 (1 + .17)= 2.8378

Dividend at year end 5 = $2.8375 (1 + .09)= 3.0932

Dividend at year end 6 = $3.0932 (1 + .09) = 3.371

MPS = $\frac{D_{1} }{(1\ +\ k)^{1} } + \frac{D_{2} }{(1\ +\ k)^{2} } \ +\ \frac{D_{3} }{(1\ +\ k)^{3} } \ +\ \frac{D_{4} }{(1\ +\ k)^{4} } +\ \frac{D_{5} }{(1\ +\ k)^{5} } \ + \frac{1}{(1\ +\ k)^{5} } [\frac{D_{6} }{(k\ -\ g)\ ]}$

where MPS = Market price of share

D= Dividend for different years

k = Cost of equity

g= constant growth rate after year 5

putting values in above equation we get,

MPS = 1.864 + 1.65 + 1.478 + 1.463 + 1.352 + 0.4371 × 37.462

MPS = $24.18

The maximum price per share that an investor who requires a return of 18% should pay for Home Place Hotels common stock is <u>$24.18</u>

4 0

3 years ago

Beech Manufacturing makes expanded and is now making two products: Standard and Deluxe. Each Standard model takes 1.5 machine ho

Talja [164]

Answer:

Beech Manufacturing

The utilities flexible budget for July is:

= $1,225

Explanation:

a) Data and Calculations:

Utility rate per machine hour = $0.35

Standard Deluxe Total

Predicted production 1,100 770 1,870

Expected machine hours 1,650 3,080 4,730

Units produced 1,200 850 2,050

Standard machine hour/unit 1.5 2

Budgeted machine hours

(flexible budget) 1,800 1,700 3,500

Actual machine hours used 3,400

Utilities Static Budget = $1,655.50 (4,730 * $0.35)

Utilities Flexible Budget = $1,225 (3,500 * $0.35)

Utilities Actual Budget = $1,190 (3,400 * $0.35)

6 0

3 years ago

The analysis tool that lists products in descending order of their individual dollar contribution to the firm is:

Sonja [21]

Answer:

Product Life Cycle Analysis

Explanation:

6 0

3 years ago

All else being equal, a company with a low operating leverage will have:

nlexa [21]

Answer:

c) relatively high variable costs

Explanation:

Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.

A business with a large amount of fixed cost relative to variable is said to have a high operating leverage . For such business, operating income would be more volatile because the operating income would not increase in commensurate proportion as sales revenue.

And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs

Operating leverage is calculated as

Contribution /Earnings before interest and Tax

5 0

3 years ago

Q1. Identify the different types of external and internal trends that have impact on HRM? Give an example of each trends in your

Diano4ka-milaya [45]

Internal influences on HRM objectives

Corporate objectives

E.g. an objective of cost minimisation results in the need for redundancies, delayering or other restructuring

Operational strategies

E.g. introduction of new IT or other systems and processes may require new staff training, fewer staff

Marketing strategies

E.g. new product development and entry into a new market may require changes to organisational structure and recruitment of a new sales team

Financial strategies

E.g. a decision to reduce costs by outsourcing training would result in changes to training programmes

External influences on HRM objectives

Market changes

E.g. a loss of market share to a competitor may require a change in divisional management or job losses to improve competitiveness

Economic changes

E.g. changes in the level of unemployment and the labour market will affect the supply of available people and their pay rates

Technological changes

E.g. the rapid growth of social networking may require changes to the way the business communicates with employees and customers

E.g. the growing number of single-person households is increasing demand from employees for flexible working options

Political & legal changes

E.g. legislation on areas such as maximum working time and other employment rights impacts directly on workforce planning and remuneration

Share:

5 0

3 years ago