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FromTheMoon [43]
2 years ago
7

What is the value of a stock which has a current dividend (D0) of $1.50, and is growing at the rate of 7%

Business
1 answer:
Fofino [41]2 years ago
4 0

Answer: $32.10

Explanation:

Here is the complete question:

What is the value of a stock which has a current dividend (D0) of $1.50, and is growing at the rate of 7%? The investor's required rate of return is 12%. a. $26.75

b. $30.00

c. $32.10

d. $21.42

e. $13.38

Current dividend =D0 = $1.50

Growth rate = g= 7% = 0.07

D1 = D0 × (1+g)

D1 = $1.50 × (1 + 0.07)

= $1.50 × 1.07

= $1.605

The value of the stock will then be:

P0 = D1 / (r - g)

P0= $1.605/(0.12 - 0.07)

P0 = $1.605 / 0.05

P0 = $32.10

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Cost reduction is still the number one priority for many supply chain executives, according to the MHI and Deloitte survey. Sele
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Answer:

MHI and Deloitte Survey

Cost Reduction #1 Priority

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Explanation:

For supply chain companies to achieve their profit targets, they need to curtail costs.  Consumers are not ready to absorb much costs as they are presented with low-priced alternatives.  The competition for customers among supply chain organizations is very high.  Everyone competes for the dollar the consumer is willing to spend on goods.  With property and advertising costs skyrocketing, careful management of the cost structure is required.

7 0
3 years ago
Which of the following statements about the Consumer Decision Process is false?
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Answer:

The answer is: A) In a successful purchase, every stage in the process has to happen.

Explanation:

Sometimes we as customers don´t have the time or are unable to follow all the stages in the consumer decision process. Many times it depends on what need we want to satisfy. For instance, if we are hungry or thirsty we might decide to eat at the first restaurant we find. It doesn´t mean we made a bad choice, it simply happened that way because we didn´t have time to research about all the restaurants in the area and then evaluate and decide which one was the best for us. Many daily purchases are part of our daily routine. Imagine how many hours we would spend at a grocery store if we had to follow every step of the process.

On the other hand, if I´m searching for a new house, I will follow steps one through five several times, over and over again until I finally decide which house to buy.

7 0
3 years ago
With respect to advertising, _____ opinion leadership can involve presenting the results of surveys showing that a high percenta
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The answer is stimulating.
3 0
3 years ago
A firm has earnings before interest and taxes of $27,130, net income of $16,220, and taxes of $5,450 for the year. While the fir
grin007 [14]

Answer:

The correct answer is e. -$4,940.

Explanation:

This problem requires us to calculate the amount of the cash flow to creditors. The cash flow to creditor means all payment made to creditors in form of interest payment or principal payment. The amount borrowed is deducted from it. The detail calculation is given below.

Interest =  Earning before interest and taxes - Net income - Taxes

Interest = 27,130 - 16,220 - 5,450

Interest = $ 5,460

Cash flow to creditors = 31,600 + 5,460 - 42,000 = -$ 4,940

6 0
3 years ago
A real estate professional leased a building for 10 years at an annual rent of $48,000. She will receive a commission of 7.5% fo
Alex Ar [27]

Her gross income from this commission over the life of the lease is $28,560.

Commission for the first five years

Commission=5×(48,000× .075)

Commission=5×3600

Commission=$18,000

Commission for the next three years

Commission=3×(48,000 ×.05)

Commission=3×2,400

Commission=$7,200

Commission for the final two years

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Commission=2×1,680

Commission=$3,360

Gross income commission:

Gross income commission=$18,000+$7,200+$3,360

Gross income commission=$28,560

Inconclusion her gross income from this commission over the life of the lease is $28,560.

Learn more about gross income commission here:brainly.com/question/24825618

3 0
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