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aalyn [17]
2 years ago
14

Hyper, Inc. is a growing firm that chooses to payout only 20% of its earnings as dividends (thus, it has a plowback ratio of .8)

. Hyper expects EPS next year of $5 and and a Return on Equity of 15%. This ROE is expected to be maintained indefinitely and is also appropriate to use for Hyper's required return on equity. Given this information, what is the current price of Hyper, Inc. stock
Business
1 answer:
alukav5142 [94]2 years ago
4 0

Answer:

a.$33.33

Explanation:

Options are "<em>a.$33.33 , b. $30.13 , c. $16.67 , d. $26.66"</em>

<em />

EPS1 = $5

D1 = 0.20($5) = $1

Sustainable Growth Rate = (0.80)(0.15) = 12%

As per Dividend Discount Model,

Stock Price = D1/(r - g)

Stock Price = 1/(0.15 - 0.12)

Stock Price = $33.33

Therefore, the current price of Hyper, Inc. stock $33.33

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2 years ago
Describe the ways in that general and functional managers are different from end users. what purpose do these managers have in r
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General and functional managers are different from end users. what purpose do these managers have in regards to information systems at an organization

General management focuses on the entire business as a whole a top-down organizational view. A functional manager is a person who has management authority over an organizational unit such as a department within a business, company, or other organization.

General management and functional management have many similarities; the primary difference is that a functional manager focuses on one facet of an organization, while the general manager must keep everything in view.

Functional managers are most common in larger organizations with many moving parts, where different business functions are led by managers within those respective fields.

Management is the act or art of managing things.

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Organization refers to a collection of people, who are involved in pursuing defined objectives.

To know more about the Management here

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6 0
1 year ago
Financial literacy is the set of skills and knowledge needed to make informed decisions about __________. A. career matters B. m
Likurg_2 [28]

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5 0
3 years ago
Consider a country that is operating under a system of flexible exchange rates. If the central bank in this country imposes an e
UNO [17]

Answer:

i a depreciation of its currency;

Explanation:

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If exchange rate is flexible and an expansionary monetary policy is carried out, the supply of money would exceed its demand.  as a result, the value of money would fall. this is known as depreciation

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2 years ago
At the time when products and services are produced or provided to customers, which functional area is responsible for ensuring
Norma-Jean [14]

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3 years ago
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