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kirill115 [55]
3 years ago
9

1. You are evaluating the purchase of HypeToys, Inc. common stock that just paid an annual dividend of $1.80. You expect the div

idend to grow at a rate of 12% per year, indefinitely. You estimate that a required rate of return 17.5% will be adequate compensation for this investment. Assuming that your analysis is correct, and the company pays dividends once a year, what is the most that you’re willing to pay for the common stock if you were to purchase it today? Round to the nearest $.01.
Business
1 answer:
Arte-miy333 [17]3 years ago
5 0

Answer:

$36.65

Explanation:

D1 = D*(1+g)

D1 = 1.8*(1+0.12)

D1 = 1.8(1.12)

D1 = $2.016

Price of stock P = D1 / (re - g)

Price of stock P = $2.016 / (0.175 - 0.12)

Price of stock P = $2.016 / 0.055

Price of stock P = $36.654545

Price of stock P = $36.65

So, $36.65 is the most that i will be willing to pay for the common stock if i am to purchase it today.

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4 0
3 years ago
The project has been challenging to manage. Everyone has been on edge due to pressure to complete the project on time. Unfortuna
denpristay [2]

Answer: C. Involve the team in creating ground rules for the meetings.

Explanation:

The meetings have seemingly descended into anarchy and as such needs to be controlled in an orderly manner to make any sort of progress. One way this can be done is through the setting of ground rules. These rules need to be accepted and inclusive of people's qualms or else the arguments will continue.

When the rules are made therefore, the inputs of the entire team should be taken into consideration and this is what the Project manager needs to do. Setting all inclusive rules also helps the team understand each other better during the discussions are point of views will be seen and understood better.

7 0
3 years ago
Bright Daffodils Inc. operates in a state where the smoker's rights law is prevalent. Samantha, the HR manager at Bright Daffodi
pickupchik [31]

Answer:

The correct answer is B. Lara cannot be legally terminated for smoking outside the workplace.

Explanation:

If the conduct is not based on facts that occurred in the performance of her duties, Lara cannot be fired by Bright Daffodils. In this case, people have legislation that protects them and, in the event of dismissal, Lara can request the reinstatement of their work because, within the structure of the law, smoking is not considered a crime. Despite this, Lara must comply with internal policies and must not smoke during her working hours.

7 0
3 years ago
Sometimes development aid goes toward disaster relief. For​ example, after the Indian Ocean tsunami of​ 2004, non-governmental o
solong [7]

Sometimes development aid goes toward disaster relief. For​ example, after the Indian Ocean tsunami of​ 2004, non-governmental organizations helped devastated countries to rebuild.

Based on your understanding of the​ chapter, which of the following statements are true of foreign​ aid? ​(Select all that​ apply).

A. Foreign aid is inefficient when it is given directly to an extractive government.

B. Foreign aid is efficient when it is directly used to rebuild capital and promote growth in an economy.

C. Foreign aid is efficient when it is given directly to an extractive government.

D. Foreign aid is inefficient when it is directly used to rebuild capital and promote growth in an economy.

Answer:

Option A & B is correct

Explanation:

- corruption within the government affects the proper use of aids for that which it's designated for( diversion of funds to personal accounts of government officials in charge e.g mobutu of Zaire.)

Foreign aid is a powerful tool which can be used to mediate failure of market mechanism and boost economic growth by facilitating productive investment in key areas of the economy.

5 0
3 years ago
An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $47 a share at whic
Feliz [49]

Answer:

56.67%

Explanation:

Purchase cost = 30 dollars

Margin x price = 0.60x30 = $18

30-18 = $12

Profit = $47 - $30 - 0.07(12)

= 16.16

Percentage earned = (16.16 /18) * 100

= 89.78%

Profit from the trade

= 47-30

= 17

Percentage earned = 17/30 * 100

= 56.67%

The return would have been 56 67% if the investor had not done this.

5 0
3 years ago
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