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kondaur [170]
3 years ago
14

Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out​ 60% of i

ts earnings in total​ - 40% paid out as dividends and​ 20% used to repurchase shares. If​ Sultan's earnings are expected to grow by ​% per​ year, these payout rates do not​ change, and​ Sultan's equity cost of capital is ​%, what is​ Sultan's share​ price?
Business
1 answer:
sukhopar [10]3 years ago
7 0

Answer: $73.33

Explanation:

Dividend discount model can be used to calculate the value of the shares:

= Earnings paid out / (Cost of equity - growth rate)

Earnings to be paid out:

= 60% * 5,500,000

= $3,300,000

Value of shares:

= 3,300,000 / ( 9% - 6%)

= $110,000,000

Share price:

= Value of shares / Number of shares outstanding

= 110,000,000 / 1,500,000

= $73.33

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In two or more complete sentences, compare and contrast making a purchase with a debit card versus making a purchase with a cred
Vlad [161]

Answer:

When you pay with a credit card you use the bank's money that you have to pay back but with a debit card, you are using money straight out of your account. In the end, you are basically using your money just not in the form of paper.

Explanation:

When you pay with a credit card you use the bank's money that you have to pay back but with a debit card, you are using money straight out of your account. In the end, you are basically using your money just not in the form of paper.

3 0
2 years ago
An internet company gives their old computer system to the computer science
Elanso [62]

Answer:

Explanation:

The formula for GDP is

GDP = C + I + G + NX

C = consumption

I  = Investment by business and household purchases by individuals

G = Government  Expenditures

NX = foreign trade.

The first thing you can do is knock out foreign trade.

I think you can dispense with Government expenditures as well all though a school is an arm of government.

I think investment is what you have to look at carefully because it does include charitable organizations.  We'll come back to this.

Consumption is what it sounds like it sounds.

You can't answer this in any other way than to know how the company writes it off. It is an asset that goes from some value to 0. It no longer exists on their books. So it decreases their assets. It is balanced on their books by calling it an expense I think and that further has impact on their books.

So they are decreasing their value (albeit by a small amount -- they've already bought new computers).

I'm not sure about this, but I think what has happened is that the GDP is going to go down. Their investment has decreased by being written off.

8 0
3 years ago
A manager is hired by a start-up for her demonstrated ability to think strategically and make broad-based decisions that serve t
STatiana [176]

Answer:

Conceptual Skills

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question the manager was most likely hired for her Conceptual Skills. This is the ability that an individual may possess to analyze hypothetical situations in order to gain valuable information and develop strategies. Which allows that individual to make certain big decisions in benefit of the company.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are ris
Feliz [49]

Answer:

Jennifer is losing purchasing power by 2%.

Explanation:

An increase in prices indicates a decrease in the purchasing power of the consumers. An increase in income means an increase in the purchasing power of the consumers.  

A 5% raise means that Jennifer's income will increase by 5% and so will her purchasing power. But at the same time, a price rise by 7% means that her purchasing power will decrease by 7%.  

This means that overall her purchasing power will decrease by 2%.

4 0
4 years ago
HELPPP
Kamila [148]

Answer:

ture

Explanation:

5 0
2 years ago
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