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OLga [1]
3 years ago
8

You want to buy XYZ public company. The company currently has a dividend of $3.12, but has indicated they will increase the divi

dend by 3.1% each year. You expect an investment return of 9%. How much is this stock worth
Business
1 answer:
Ivenika [448]3 years ago
6 0

Answer:

$54.52

Explanation:

The formula for determining share price is as stated below based on the Gordon Constant Dividend Model:

Share price=current dividend*(1+g)/(Ke-g)

current dividend=$3.12

g=constant dividend growth rate=3.1%

Ke=required return on the investment=9%

Share price=$3.12*(1+3.1%)/(9%-3.1%)

Share price=$3.12*1.031/5.9%

Share price=$3.21672 /5.9%

share price=$54.52  

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Match the items below by entering the appropriate code letter in the space provided. Plant assets Book value Salvage value Strai
disa [49]

Answer:

1. Small expenditures which primarily benefit the current period. REVENUE EXPENDITURES

2. Cost less accumulated depreciation. BOOK VALUE

3. An accelerated depreciation method used for financial statement purposes. DOUBLE DECLINING BALANCE METHOD

4. Tangible resources that are used in operations and are not intended for resale. PLANT ASSETS

5. Equal amount of depreciation each period. STRAIGHT LINE METHOD

6. Expected cash value of the asset at the end of its useful life. SALVAGE VALUE

7. Process of allocating the cost of equipment over its service life. DEPRECIATION

8. Material expenditures that increase an asset's operating efficiency, productive capacity, or useful life CAPITAL EXPENDITURES

9. An accelerated depreciation method used for tax purposes. MACRS

10. Useful life is expressed in terms of units of production or expected use. UNITS OF ACTIVITY METHOD

Explanation:

7 0
3 years ago
The R&D division of Piqua Chemical Corp. has just developed a chemical for sterilizing the vicious Brazilian "killer bees" w
Step2247 [10]

Answer:

(1)The primary stakeholders in this example are the shareholders of he company who have infused their money expecting it to be used for lawful objects as stated in the charter of the company, the secondary stakeholders can be the environment such as humans.

(2)President actions does not seem ethical, because he wants to save his own job at the expense of polluting the environment what can cause harm to humans, plants and animals.

(3) Since Finlay Inc. has no assets other than $ 10 in patent, it would be very hard to carry the huge losses should lawsuits be filed. In that event, there are going to be huge outflows of cash from the books of Piqua, and the stockholders would want to know why or the reason.

Explanation:

Solution

Given that:

(1)The primary stakeholders in this case, are the shareholders of the company, who have infused their money expecting it to be used for lawful objects as stated in the charter of the company. The secondary stakeholder could be the environment comprising of the fauna,flora, and humans, as the spray can be a serious pollutant in the environment.

(2) The president's actions and reasons are does not seem ethical

Firstly, he wants to save his own job at the expense of polluting the environment, and possibly causing various harm to animals,plants, and even humans.

Secondly, he does not want to share the contingent liabilities that may occur with the stockholders, that may lead to erosion in  shareholder value.

The third reason is,in order to keep these liabilities off the balance sheet of Piqua Chemical Corp., he has developed a SPV for carrying the losses from lawsuits.

Hence, there is no limpidity here, and he has committed a breach of trust. The president of the company, as the agent of the company and its stockholders stands in a  relationship that is fiduciary, and should avoid conflict or issues of interest at all cost.

(3) At the end, it would be hard for Piqua to hide itself from the losses of Finlay Inc.

Since Finlay Inc. has no assets other than $ 10 in patent, how would it be possible to carry the huge losses should lawsuits be applied. In that case, there are going to be huge outflows of cash from the books of Piqua, and the stockholders would want to know the what caused it.

6 0
3 years ago
Kaspar Industries expects credit sales for January, February, and March to be $205,200, $266,800, and $316,800, respectively. It
Mrrafil [7]

Answer:

Results are below.

Explanation:

Giving the following information:

It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.

Sales:

January= $205,000

February= $266,800

March= $316,800

Cash collection January:

Sales in cash from January= 205,000*0.75= 153,750

Total cash collection January= $153,750

Cash collection February:

Sales in cash from February= 266,800*0.75= 200,100

Sales in account from January= 205,000*0.25= 51,250

Total cash collection February= $251,350

Cash collection March:

Sales in cash from March= 316,800*0.75= 237,600

Sales in account from February= 266,800*0.25= 66,700

Total cash collection March= $304,300

7 0
3 years ago
As a group, create a team charter for governing your future CLC activities. The charter should include plans for team building,
Over [174]

Answer:

First of all to create an effective team charter as road way for your group or team, for governing CLC activities the following needs to be considered

<em>• Who are the people involved </em>

<em>• Who is a team leader and who resolves problems </em>

<em>• How long does it take to create a charter </em>

<em>• How long does the charter last </em>

<em>• Creating a Team purpose and mission to others in the organization</em>  

Explanation:

<em>Now the first Method of having a good charter team usually involves the background </em>

<em />

<em>When Creating a charter, you start from the initial stage or point. Questions would be asked on what areas of focus is this charting heading towards. Like what types of project, it would get involved in on the long /short term. </em>

<em />

<em>Questions can be asked as the following bellow, </em>

<em>• Who is a team leader </em>

<em>• What are the roles of each stakeholder in the team </em>

<em>The second Method or role after having a startup background is now to focus on the deeper aspects of the charter like </em>

<em />

<em>• How is success evaluated or measured </em>

<em>• Having a lay down principles to guide the team or group in the right track </em>

<em>• Define roles each team member would play in terms of the success of the company. </em>

<em>• Have a mission and vision statement on how the company would grow on the long term </em>

<em> </em>

<em>The third Method after the Mission and vision statement is created for a successful team charter, it’s the roles and responsibility of team members. For this stage roles and responsibilities would be assigned to each group in the charter by defining the following terms </em>

<em />

<em>• Assign who is doing this for whom and the purpose </em>

<em>• Having asses on all areas needed for the group to succeed  </em>

<em>• Ensure all Team members voice are known, expressed to their best of abilities. </em>

<em>• Create what is called RACI (Roles, Accountable, consulted, Informed) roles and responsibilities matrix </em>

<em>The Fourth Method of a successful team charter is Budget and Resources  </em>

<em>Once roles and responsibility have been established, the team/Group can access the budget and resources to carry out the tasked at hand. </em>

<em> </em>

<em>The Fifth Method of a successful team after budget and resources are, </em>

<em>The internal checks, balance and reviews. </em>

<em>The Team Members of the charter should decide, also, whether team goals assigned to members will be shown in the team members’ annual reviews. A good example of a reliable  system is the SMART goal method The goals should be: </em>

<em>• Specific </em>

<em>• Measurable </em>

<em>• Achievable </em>

<em>• Realistic </em>

<em>• Time-based </em>

<em> </em>

<em> </em>

<em> </em>

<em> </em>

<em> </em>

<em> </em>

<em> </em>

<em> </em>

5 0
3 years ago
Kiersten and her four siblings are starting their own home design business. One of their primary goals is keeping the loving rel
Leto [7]

Answer:

Correct option is D.

Explanation:

An accurate recommendation of the Act is that <u>there should be discussion and well understood ways that the partners will handle disagreements.</u>

8 0
4 years ago
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