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Otrada [13]
3 years ago
7

A firm has experienced a constant annual rate of dividend growth of 7 percent on its common stock and expects the dividend per s

hare in the coming year to be $2.40. The required rate of return on the stock is 12 percent. The value of the firm's common stock is ________.
Business
1 answer:
Sveta_85 [38]3 years ago
3 0

Answer:

The value of the firm's common stock is $48

Explanation:

The constant dividend growth model is used to determine the market value of the share and which can be expressed as:

P = \dfrac{D}{r-g}

here;

the value of the current market price of the share (P) = unknown?

The dividend expected in the next year (D) = $2.40

The required rate of return (r) = 12% = 0.12

The growth rate (g) = 7& = 0.07

Replacing the values into the above equation:

P = \dfrac{2.40}{0.12-0.07}

P = \dfrac{2.40}{0.05}

P = $48

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Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishi
skad [1K]

Answer:

a. The cost of inventorying a single item is $1.00 per item.

b. The cost of inventorying a single item is $0.86 per item.

c. The cost of inventorying a single item is $0.95 per item.

d. The cost of inventorying a single item is $1.08 per item.

e. You should assign two workers per computer in order to minimize the cost of inventory per single item.

Explanation:

Note: This question is not complete. A complete question is therefore provided before answering the question as follows:

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $100 each and you must pay each worker $25 per hour.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

The explanation to the answer is now provided as follows:

Note: See the attached excel file for all the calculations.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is <u>$1.00 per item.</u>

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is <u>$0.86 per item.</u>

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

The cost of inventorying a single item is <u>$0.95 per item.</u>

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

The cost of inventorying a single item is <u>$1.08 per item.</u>

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

To minimize the cost of inventory per single item, you should assign the number of workers at a point where the cost inventorying a single item is the lowest.

From from parts a to d above, the <u>lowest cost of $0.86 per item </u>of inventorying a single item is obtained in part b when you assign two workers per computer.

Therefore, you should assign two workers per computer in order to minimize the cost of inventory per single item.

Download xlsx
6 0
3 years ago
What is the main challenge of career planning in changing times?
White raven [17]

The answer is option B. The main challenge of career planning in changing times is that you need to revise your plans often.

The world we live in is dynamic. New inventions, new technology, new methods of doing things always come up with time.

Because of this, when making a career plan, one must be fully aware that the process is not static. That is, changes would occur and as such, you have to revise your plans often so that it is in line with what is obtainable at the time.

<em>Read more on career planning here: brainly.com/question/6457203?referrer=searchResults</em>

5 0
3 years ago
7. on an average hourly basis, how much does butcher enterprises spend on wages and benefits, respectively, in dollars?
Blababa [14]

The compensation survey showed an average hourly rate of $23 for total compensation. Of this amount, wages are $16 per hour and benefits are $7 per hour. In comparison, Butcher Enterprises spends an average hourly rate of $19 for total compensation. Of this amount, 70 percent is allocated for wages.

1-7. On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits, respectively, in dollars?

Answer:

Hourly wage = 0.7 * $19 = $13.3

Hourly benefit = 0.3 * $19 =$5.7

Explanation:

Butcher enterprises spends average hourly rate of total compensation = $ 19

Allocation for hourly wage = 70%

So therefore;

Hourly wage = 0.7 * $19 = $13.3

Allocation for hourly benefit = 30%

So therefore;

Hourly benefit = 0.3 * $19 =$5.7

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An ‘A’ is worth 4.0 points

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How has Groupon effectively used personal selling, advertising, and public relations to market its products?
Rainbow [258]
Groupon effectively uses personal selling, advertising, and public relations to market its products and service by Maintaining a good relationship with the customers by providing easy usage on the application as the customers are convenience. Groupon will effectively use its marketing budget in this campaign to creatively reach consumers and achieve lasting brand loyalty
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