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Yanka [14]
3 years ago
10

You are evaluatig an equity investment in a public company called Corona Corp (ticker: COR). You expect the company will pay a $

2.00 dividend per share at the end of next year and that dividends will grow at a constant rate of 5% annually in the future. You require a 13% return on investments in equity. Based on these assumptions, what is the fair value of a share of COR stock today?
Business
1 answer:
melamori03 [73]3 years ago
5 0

Answer:

$25

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

2/ 0.13 - 0.08 = $25

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At the stage, the product reaches its highest point of demand and sales
gregori [183]

Answer: Maturity Stage

Explanation:

At the maturity stage, the product reaches its highest point of demand and sales. The market is getting closer to saturation, so the number of potential new customers is limited, and competition increases. During the saturation and decline stage, sales stop increasing, so profitability is lowered.

5 0
3 years ago
A loaf of bread cost $0.18 in 1955 and the CPI was 26.8. The CPI in 2013 was 233.
luda_lava [24]

Answer:1.56

Explanation

(0.18÷26.8) *233= 1.56

4 0
3 years ago
Stitch Fix is an online personal styling service that was founded in 2011. This company combines computer algorithms with human
iren [92.7K]

Answer:

A

Explanation:

there is no correlation between the clothes been made for customers and an increase in life expectancy  

The company's efficiency is increased as a result of tailoring customers clothes to be exactly what they want.

Also, Stitch Fix contributes to GDP as a result they can contribute to global economic growth

8 0
3 years ago
What is the relationship between a firm's industry environment and the firm's earning potential?
Damm [24]

An organization is more likely to generate above-average returns the more it can positively impact the environment of its industry.

The general rules of competition that affect all companies that offer comparable goods and services. Industry environment is a concept that Harvard professor Michel E. Porter advanced into the forefront of strategic thinking and company planning. The core of his work, which outlines the five factors that affect industry competition, first appeared in the Harvard Business Review. Strategic managers can link distant issues to their influence on a firm's operating environment with the use of his well-defined analytical framework.

To learn more about firms environment here

brainly.com/question/17494285

#SPJ4

3 0
1 year ago
An investor owns $3,000 of Adobe Systems stock, $6,000 of Dow Chemical, and $7,000 of Office Depot. What are the portfolio weigh
Drupady [299]

Answer:

0.1875; 0.375; 0.4375

Explanation:

Given that,

Adobe Systems stock = $3,000

Dow Chemical = $6,000

Office Depot = $7,000

Total Value of stock:

= Adobe Systems stock + Dow Chemical + Office Depot

= $3,000 + $6,000 + $7,000

= $16,000

Portfolio weights of Adobe Systems stock:

= Value of Adobe Systems stock ÷ Total Value of stock

= $3,000 ÷ $16,000

= 0.1875

Portfolio weights of Dow Chemical stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $6,000 ÷ $16,000

= 0.375

Portfolio weights of Office Depot stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $7,000 ÷ $16,000

= 0.4375

3 0
3 years ago
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