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Makovka662 [10]
3 years ago
6

Galaxy Air, previously a no-growth firm, has two million shares outstanding. Until now, it consistently earned $20 million per y

ear on its assets. (It has no debt and pays out all earnings as dividends. Its cost of capital is 10 percent.) Due to its newly appointed CEO, Galaxy Air is now able to squeeze out 1 percent annual growth by plowing back 5 percent of earnings. Calculate its stock price per share
Business
1 answer:
stellarik [79]3 years ago
6 0

Answer: $106.61

Explanation:

The following can be deduced from the information given:

Net Income = $20

Weighted Average no. of shares = 2

Earning per share (EPS) = $20/2 = $10

DPS =(100% - 5%) of EPS

= 95% × $10 = $9.5

Growth Rate (g) = 1%

Cost of equity (Ke) = 10%

DPS1 = [9.5 × (1+0.01)] = 9.595

Price of Stock will now be

= Po = DPS1/(Ke-g)

= 9.595/(0.10-0.01)

= 106.61

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I’m pretty sure the answer is c
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You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a ve
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Answer:

1) You should go home and watch TV.

Explanation:

Since you value seeing the play $10, then you should leave the theater and go to your house to watch TV since that has a higher value for you ($12).

We are talking about opportunity costs here. Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another. In this case the opportunity costs are:

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Since watching TV is more valuable to you, then that is what you should be doing.  

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3 years ago
Rubina is the director of procurement at Baines Corporation. She plans to send a memo to the employees in her department outlini
Romashka-Z-Leto [24]

Answer: describe the bottom line of the policy changes at the beginning of the memo

Explanation:

The options to the question are:

a. describe the bottom line of the policy changes at the beginning of the memo.

b. include an apology at the end of the memo stating the inconveniences that could be caused due to the new policy.

c. present the rationale for the new policies at the memo's beginning.

d. highlight controversial issues, which could arise after the new policies have been implemented, in the memo.

From the question, we are informed that Rubina is the director of procurement at Baines Corporation and that she plans to send a memo to the employees in her department outlining some changes in the company's personnel policies as she believes that most of the employees will view the changes favorably.

Since she is of the opinion that most of the employees will view the changes favorably, she can describe the bottom line of the policy changes at the beginning of the memo. This is because she believes the memo will get a favourable audience. In a situation whereby she is not sure if it will be favourable, in the begining of the memo, she may have to offer and apology and tell them the rationale behind the memo before going into further details.

8 0
3 years ago
TravelLite and FareLine compete as online travel agencies. Historically, TravelLite has focused more on flights, whereas FareLin
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Answer:

16.80% and 39.43%

Explanation:

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For Travel lite, the net profit margin is

= $1,080 ÷ $6,430 × 100

= 16.80%

And, for fare line, the net profit margin is

= $3,020 ÷ $7,660 × 100

= 39.43%

By dividing the net income or net profit by the total revenues we can get the net profit margin or we can say it is profit percentage that is earned by the company

It is always expressed in percentage

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