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olasank [31]
3 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]3 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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A​ lump-sum purchase or basket purchase involves paying a single price for several assets as a group.
il63 [147K]

Answer:

TRUE

Explanation:

A basket purchase is the acquisition of a number of assets as a group, in a single purchase transaction. This is common when the basket purchase is lower than the price charged for individual assets.

7 0
3 years ago
Your general speech topic is dog obedience, and you have arranged an interview with an authority. what is your next task?
valentinak56 [21]
It is to research about dog behavior
6 0
3 years ago
A combination of a sole proprietorship and corporation
egoroff_w [7]
The answer is cooperative. It is described as jointly-owned and democratically-controlled enterprise. It includes <span>non-profit community organizations. There are many types of cooperatives such as worker cooperatives, consumer cooperatives, and producer cooperatives.</span>
8 0
3 years ago
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 265,000 shares of stock outst
PIT_PIT [208]

Answer: $16.60

Explanation:

The following information can be gotten from the question:

Total common equity = $4,050,000 Shares of stock outstanding = 265,000

Net Income = $450,000

Dividends = $100,000

Based on the information given, the book value per share will be calculated as:

(Total common equity + Net income - Dividends) / Outstanding shares

= ($4,050,000 + $450,000 - $100,000) / 265,000

= $4,400,000 / 265,000

= $16.60

6 0
2 years ago
What is expected of a new salon employee and what are two things you must do every day? 2. What are six habits of a good team pl
aleksklad [387]

Answer:

1.

As an employee working for a salon, it is necessary to have understandings and skills related to this job. They should have hair care skills to provide services for customers such as: washing, cutting, dyeing, etc. In addition, they also need to have good working attitude, which includes being on time for their shifts, being friendly, respectful to the customers. As a service provider, they should also be customer-oriented, which means prioritize the benefits of customers.

2.

A good team player is the one who have both good individual skills and the team-oriented attitude as well. So that they tend to have these habits:

+) The first one is they need to strive to help. This reflects their attitude to contribute as a team and help each other rather than just look for personal achievement.

+) Second one is to pitch in, start doing something as a group, put the responsibility for and the benefit of the whole group on top.

+) The next one is share your knowledge. Sometimes, in a group, the field of understanding of each member is different. It is necessary to share the knowledge to assure that other people can also understand what you gonna do to have appropriate adjustment or support if necessary. This can also help team members all gain.

+) The fourth one is to have positive mind. The more optimistic and future-focused a member the better they perform at work. And this attitude also helps lift the enthusiasm as well.

+) The fifth one is being willing to resolve conflict. As conflicts are unavoidable in team work due to the difference in many aspects of people. A good team player tends to be more willing to resolve conflict as it could affect the work efficiency.

+) The last one is to be willing to be subordinate and loyal. This could help remain the team spirit well and make a team player become a good listener. Even when they are wrong or have no idea, it is essential that they are willing to be subordinate rather than just want to lead everything.

3.

Three most common methods of salon compensation could be salary, commission, and salary plus commission.

Salary is the fixed amount that the employees receive when fulfilling all of their duties. The job and salary are usually discussed and accepted by both sides before they start working.

The commission is the money the employees receive, which is calculated by the level of completion of the job.

Salary plus commission are used when the employees can earn sales or create added value to the business of the firms - which is higher than the required level of their duties.

4.

Five principles of selling salon products and services are:

+) First, be familiar and have understanding about each product's feature, benefits, effect as well as the other services. This is to assure that they can sell and recommend the right one that the customers need.

+) Second, try to adapt the technique to meet the needs of each client. The clients demand and personality varies so that their needs are different, for example some are willing to have more recommendation to buy, some are easily confused and uncomfortable instead.

+) The third one is asking questions determining the need to generate the customer's interest in products or services.

+) The fourth one is never underestimate the client's knowledge. Despite the fact that there are still customers do know much about beauty knowledge, you should never assess it and try to show your respect to the customer's understanding.

+) The last one is keeping relaxed and friendly manner when having a sales talk. This could make the conversation more comfortable and please the client.

5.

To expand the client base, you should focus much on the customer services and try to deliver the value to the customers. This can be enacted in these ways:

+) Membership: Provide frequent customers with membership to obtain added benefits.

+) Provide consistently great services and products in all aspects, not focus on particular things.

+) Be respectful to the customers and each other within the business.

+) Connection: try to connect more with your clients to make them feel they are cared.

+) Be positive as people are always moving towards and attracted by the enthusiasm and optimism.

+) Focus on making the salon image reliable to keep the repeat customers.

3 0
3 years ago
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