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fenix001 [56]
2 years ago
15

Using a dividend discount model, what is the value of a stock that pays an annual dividend of $5 that is not expected to grow, a

nd the discount rate is 10%? What will be the value of the stock if the dividend is expected to grow 5% per year?
Business
1 answer:
Alenkasestr [34]2 years ago
5 0

Answer:

a. <u>Value of the stock without growth rate</u>

= D1 / (r - g)

= $5 / (10% - 0)

= $5 / 10%

= $5 / 0.10

= $50

b. <u>Value of the stock with growth rate</u>

= D1 / (r - g)

= $5 / (10% - 5%)

= $5 / 5%

= $5 / 0.05

= $100

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Do some independent research on Nicholas Carr (the author of "IT Doesn’t Matter") and explain his current position on the abilit
pychu [463]

Answer:

I agree with Carr's position.

Explanation:

Nicholas Carr is a book author who conceived in america and he has distributed numerous books and articles on innovation, business, and culture.  

Nicholas Carr composed an article called "IT Doesn't Matter" in Harvard Business school at 2003 and in the year 2004 he distributed book called "Does IT Make a difference"  

So His thoughts irritated the data innovation industry for decages.  

Nicholas Carr is a previous individual from the Encyclopedia Britannicas publication leading group of counsels.  

Nicholas Carr was additionally in the directing leading group of the World Economic Forums distributed computing venture.  

Nicholas Carr was an author in home at the University of California at Berkeleys news coverage school.  

So Since 2005 he has composed the well known blog which got exceptionally famous.  

Nicholas Carr was likewise previous official proofreader of the Harvard Business Review.  

His present position is composing and giving a few methods in business and innovation.  

I concur with the situation of Nicholas Carr why in light of the fact that with the assistance of his articles we would knowledge be able to better information on business, innovation and culture.  

With the goal that we can improve our range of abilities and we can learn new things in various societies and advancements.  

By help of his articles and books we can increase some view over various territory in business and new innovations.  

So there are a lot of individuals who followed his articles and books and got numerous inputs to him with respect to the new articles and innovations.  

Nicholas Carr utilizes crafted by Gary Small and enduring the mechanical change of the advanced psyche and the hypothetical bedrock of The Shallow and he likewise cast chilling forecasts about what's to come.  

Nicholas Carr books overlooks the nature of the real book being perused and which is appears to accept that the thoughts in books are of inherently better quality.  

Indeed, even every one of Nicholas Carr proclamations are seen to disentangle after a touch of pushing.

7 0
3 years ago
Paul began his speech as follows: They called Lou Gehrig the iron horse. The tireless worker played an astounding 2,130 consecut
Tatiana [17]

Answer:

relating the topic to the audience

Explanation:

Based on the scenario being described within the question it can be said that to gain attention and interest Paul related the topic to the audience. Paul did this by comparing Lou Gehrig to the audiences daily lives at school. By doing this it is catching the audiences attention which in term causes them to be interested in the rest of the speech that Paul is giving.

7 0
3 years ago
On January 1, 2018, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $
harkovskaia [24]

Answer:

net income attributable to the non controlling interest is $40800

Explanation:

Given data

Race sold = $450000

cost = $330000

owned = 15%

net income = $204000

Race net income = $806000

to find out

net income attributable to the non controlling interest

solution

we find the non controlling interest

so we apply formula for non controlling interest that is

non controlling interest of income = net income × (100%  - 80%)

put here value of net income

non controlling interest of income = net income × (20%)

non controlling interest of income = 204000 × (20%)

non controlling interest of income = 40800

so net income attributable to the non controlling interest is $40800

8 0
3 years ago
Which of the following statements is NOT true regarding​ forecasting? A. Forecasting may involve taking historical data and proj
laiz [17]

Answer: Forecasting is exclusively an objective prediction.

Explanation: In simple words, the process of predicting any future event by analyzing the past data is called the forecasting. The factors that an analyst takes from the past could be both qualitative and quantitative.

     The forecasting process is done for a specified period and not for infinity. In other words, it is the study of trends and predicting how these trends could change in the future.

Hence from the above we can conclude that the correct option is B.

6 0
3 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per
Arturiano [62]

Answer:

$150,000

Explanation:

The computation of value of ending inventory under absorption costing is shown below:-

Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit

= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)

= $5 + $4 + $3 + $8

= $20

Ending Inventory in units = Units produced - Units sold

= 25,000 - 17,500

= 7,500

Cost of Ending Inventory = Total Cost per unit × Ending Inventory units

= $20 × 7,500

= $150,000

So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.

8 0
3 years ago
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