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olasank [31]
4 years ago
15

A start-up will not pay any dividends for 3 years. At the end of the third year, it is expected to pay a dividend of $0.30. This

dividend should then grow at a rate of 12% for 6 years, and at a reduced rate of 6% thereafter. The market required rate of return for similar high growth start-up companies is 16%. Estimate the price of the company's shares today.
Business
1 answer:
Natalka [10]4 years ago
6 0

Answer:

The price of share at today is $1.724.

Explanation:

- First, calculate the present value of the estimated value of the dividend stream from end of Y3 to end of Y9 using growing annuity formula:

[0.3/ ( 0.16 -0.12)] x [ 1 - [ (1+0.12)/(1+0.16) ] ^6 ] x (1/1.16^2) = $1.058

- Second, calculate the Dividend receipt at the end of year 10 which is 0.3 x 1.12^6 x 0.94 = $0.557

- Calculate the present value of the dividend stream after Y9 which is a perpetuity:

[ 0.557/ ( 0.16 - (-0.06) ] x (1/1.16^9) = $0.666

- The stock price is equal to the sum of the present value of the two dividend streams calculated above = 1.058 + 0.666 = $1.724.

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Answer:

C.  Most people used the reply all button

Explanation:

This is a problem that can occur in companies due to misuse of e-mail functionalities. What happened in this case was that the employees who responded to the HR director's request email, used the reply button to all contacts forwarded in the director's original email, which ends up creating an email chain unnecessary and can hinder and delay the work of other employees, who need to see emails related to their role.

Therefore, the essential thing is that each employee makes use of the e-mail tool effectively, responding only to the recipient of the e-mail and avoiding sending unnecessary and private messages to contacts not interested in the professional subject addressed in the e-mail.

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The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred n
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Blockbuster is your answer
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4 years ago
In the _____ form of e-commerce, firms want to develop buyer loyalty and repeat business but seldom develop a close working rela
Molodets [167]

Answer: business to consumer

Explanation:

E-commerce simply means buying of goods and services online through the internet. Since it's a digitalized world now, this is common.

In the business to consumer form of e-commerce, firms want to develop buyer loyalty and repeat business but seldom develop a close working relationship with individual buyers.

4 0
3 years ago
When sales are made in a local Walmart, the sales data is sent to Walmart headquarters where the data are used to build a pictur
meriva

The question is incomplete:

When sales are made in a local Walmart, the sales data is sent to Walmart headquarters where the data are used to build a picture of the buying habits of people who shop at individual Walmarts across the nation. The use of ________ makes this possible.

A) POS systems

B) social shopping

C) e-commerce

D) e-menus

E) direct selling

Answer:

A) POS systems

Explanation:

-POS System refers to the equipment and software that retailers use in their stores to register the sales. This system has the information about the sales, the inventories and CRM.

-Social shopping is a method that is used for online shopping that tries to involve friends in the purchasing experience.

-E-commerce  refers to purchasing and selling goods online.

-E-menus is a system used by restaurants that allows to order food through an electronic device.

-Direct selling refers to selling directly to consumers without using intermediaries.

According to this, the answer is that the use of POS systems makes this possible because these systems have the information from stores like sales and inventory that allows to analize people's buying habits.

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3 years ago
Food Fanatics caters meals where their cost of producing an extra meal is $25. Each of their meals is standard and sells for $20
ollegr [7]

Answer:

B

Explanation:

The marginal cost of producing food is $25, which is greater than the price of selling the food.

At this point the firm is incurring a loss. In order to improve profit margins, the firm should reduce the amount of meals been produced, so that profit would increase

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