g The scheduling and front desk experience impact how clients rate us on their Intent to Return. True False

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

Now we solve for the intrinsic price using the gordon model

with multi-stage growth:

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

Finally we add them and get:

42.97160726

8 0

3 years ago

Art likes to invest his spare cash in the stock market. In the past, he has focused on growth stocks and long-term value to take

atroni [7]

Answer:

Explanation:

a

8 0

2 years ago

Ted was dissatisﬁed with his job. He said that the company policy, superxisior; and working conditions were responsible for his

nalin [4]

Answer:

The correct answer is B

Explanation:

As the Ted was dissatisfied with the job because of the working conditions, policy of company and supervision. And as per the theory of the Frederick Herzberg, the study indicate that the certain factors of the job are related to the job satisfaction whereas the other factors lead to job dissatisfaction.

In accordance with the theory, the motivating factors are the intrinsic elements of the job that lead to satisfaction like achievement, affiliation, growth and responsibility. And the hygiene factors are the extrinsic elements of the work environment.

Therefore, the extrinsic factors which is hygiene factor or elements of the work environment will not serve as the source of the employee motivation or the satisfaction

5 0

2 years ago

The most appropriate match between type of product and type of process occurs as one moves away from the diagonal in the product

Pavel [41]

The given statement " The most appropriate match between type of product and type of process occurs as one moves away from the diagonal in the product-process matrix " is FALSE

Explanation:

An object is a tangible product which can be marketed or used to meet internal company specifications to external consumers. A method is systemic For example – a procedure can be used in order to create a commodity.

Different objects are clustered together in a process configuration.

Process models are suitable for small businesses that do not need a single product. All unit, equipment, and machines according to how a product is made are placed in a design layout.

5 0

3 years ago

______ are stocks and bonds representing secured or asset-based claims by investors against issuers.

PSYCHO15rus [73]

Answer:

1) C

2) A

Explanation:

6 0

2 years ago

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