Answer:
What is the expected dividend yield for Portman's stock today?
d. 6.40%
Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?
a. $0.52 per share
Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900
Explanation:
cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%
dividend in one year = $1.68 x 120% = $2.016
intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50
expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%
Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244
Answer:
1. Continue to serve every dog that is brought to Bow Wow as well as possible, since customer service is a high priority and 2. Identify this as a threat and adopt a more rigorous screening process before accepting dogs, as well as charge more for dogs who have had a behavioral incident during a previous stay.
Explanation:
Bow Wow has as its best quality in the market the ability to treat well challenging dogs. This is what makes Bow Wow different. Focusing on not losing that characteristic, it would be paramount to maintain the ability to serve every dog as best as possible. Even the challenging ones. However, it is not wise from a business point of view to charge the same from dogs that have very different degrees of attention needs. Hence, it would be proper to charge more from the owners who have more difficult dogs. As Bow Wow will not lose its reputation, those owners will see that its worth the extra cost at the same that its not possible to bring to another daycare.
A withholding that you can see on your pay stub could include a health insurance payment or a retirement savings.
Entrepreneurship is a quality that is very attractive to colleges. Admissions committees like to see that you can think outside the box, be creative, and make opportunities for yourself. It’s a skill that’s particularly relevant right now: Many products and services you use came from startups or from companies that began that way.
