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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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Which of the following items are included in official U.S. GDP statistics? Instructions: In order to receive full credit, you mu
elena-14-01-66 [18.8K]

Answer:

Included in GDP

Money spent to clean up a toxic waste site in Ohio.

Andre paying Ted for a haircut in Chicago

Revenue generated by legal medical marijuana sales in California.

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

Money spent to clean up a toxic waste site in Ohio is part of government spending and it would be added in GDP

Andre paying Ted for a haircut in Chicago is part of consumption spending and it would be added as part of GDP

Revenue generated by legal medical marijuana sales in California is part of consumption spending and it would be added as part of GDP

3 0
2 years ago
Paul is able to look at things from different perspectives. He prefers to watch rather than do, and tends to gather information
Furkat [3]

Answer:

Paul's learning style is that of a <u>Assimilator(a)</u>

Explanation:

  • The Assimilating learning style lays emphasis on concept and logic.
  • The people with Assimilative learning style prefer to gather wide range of information and then they organize it in clear ,logical format.
  • These people are attracted towards logical theories like analytical models.

7 0
3 years ago
The lifetime effects of lost wages, benefits, and social security contributions that come with taking time out of the workforce
Anestetic [448]

The lifetime effects of lost wages, benefits, and social security contributions that accompanies taking time out of the workforce to raise children is called the <u>mommy tax</u>.

<h3>What is a mommy tax?</h3>

A mommy tax is a terminology which was coined by the author Crittenden and it can be defined as the lifetime effects of lost wages, benefits, and social security contributions that a woman experiences by taking time out of the workforce to raise her children.

This ultimately implies that, a mommy tax is used to connote the motherhood penalty which is characterized by severe wage and hiring disadvantages for a woman in the workplace when taking time to raise children.

Read more on mommy tax here: brainly.com/question/1166652

8 0
2 years ago
How was Samsung able to go from a copycat brand to an innovation leader?
xeze [42]
They still are a bad brand no offense
6 0
3 years ago
Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B wi
n200080 [17]

Answer:

The firm will not sell any bundle, the amount of bundle to be sold will be zero.

Explanation

Solution

Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.

Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude  that  their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.

However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a  Bundle.

We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.

Therefore, any bundle will not be sold by firm. the amount of Bundle sold will be known as a zero Bundle

5 0
3 years ago
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