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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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Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.
Arisa [49]

Answer: (A) Greenfield investment

Explanation:

 The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.

The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.

According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.

 Therefore, Option (A) is correct answer.

7 0
3 years ago
Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau o
fiasKO [112]

Answer:

c

Explanation:

The labour comprises of those who are able to work. it includes those who are employed and those who are not employed

An individual is considered unemployed if she is without a job and has been searching for a job in the last 4 weeks. Sheila is not in this category and thus she is not considered unemployed.

types of unemployment

1. structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

The geologist lost his hob permanently due to increase in wages (polices)

2. Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

3. Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

4. Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

6 0
3 years ago
The _________ pricing strategy maintains low prices and avoids the use of special sales.
Harrizon [31]
<span>This is everyday low pricing, which is also known as EDLP. Usually, the EDLP is in the range of a high-low retailer's promotional price. However, the EDLP is not a discounted price. People are attracted to this price, because it is something they can count on.</span>
4 0
4 years ago
Standards for the Code of Ethics for Market Intelligence Professionals includes to manipulate the data as the researcher sees fi
aalyn [17]

Answer:

to provide honest and realistic recommendations and conclusions in the execution of one's duties

to comply with enforced laws,

Explanation:

6 0
3 years ago
List the special procedures that must be used when working with tsi agar
Andrews [41]
<span>TSI Agar is used for identifying various microbes, containing sugars, sulfur, and a PhD indicator. One must only use the TSI Agar test for a period of 24-hours, any longer and certain microbiota will ferment all available sugars and the test will be rendered invalid.</span>
8 0
3 years ago
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