1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mina [271]
3 years ago
10

You are interested in buying a share of stock in LMU Company. You expect a dividend payment of $10 next year and that the divide

nd will grow by 6% per year thereafter. You desire a 8% return on your purchase. According to the Gordon growth model, what is the maximum price you would pay for a share of this stock?​
Business
1 answer:
rusak2 [61]3 years ago
4 0

Answer:

The correct answer is $500.

Explanation:

According to the scenario, the computation of the given data are as follows:

Dividend = $10

Growth rate = 6%

Rate of return = 8%

So, we can calculate the Maximum price of the stock by using following formula:

Price of stock = Dividend ÷ ( Rate of return - Growth rate)

By putting the value,

Price of stock = $10 ÷ ( 8% - 6%)

= $10 ÷ 0.02

= $500.

You might be interested in
John works part-time for a moving company and earns a total of $116 each weekend. A friend invites him to go on a cruise next we
adell [148]

Answer: $116

Explanation: Opportunity cost refers to the loss of profit by an individual or a firm when one chooses to go for best alternative instead of the second best alternative.

In the given case, John has two alternatives and if he chooses to go on the trip it would cost him the loss of $116 salary that he receives.

Thus the opportunity cost of going on the trip would be $116.

5 0
3 years ago
An industry leader may be joining the project team and can potentially provide additional expertise. What strategies should the
lesya692 [45]

Answer:

1) Finalizing Project Details

2) Setting Clear Expectation

3) Choosing the right team and system

4) Defining milestones

5) Establishing clear communication

6) Managing project risks

7) Avoiding scope creep

8) Evaluating the project after compilation

Explanation:

The project manager is responsible for achieving the project objectives. The main objectives of project management are:

- Establish clear, useful and achievable goals and establish contacts

- Providing project requirements, such as the workforce, required information, various contracts, materials or technologies required to achieve the project objectives

- Elimination of cost, time, scope and quality constraints of the project management triangle

The project manager is a client representative and with the support of the organization they represent, it is necessary to identify and fulfill the client's needs. Installation ability, cost, time, quality and above all are essential to customer satisfaction.

Main functions:

- To be sure why the project is so important

- Determine the quality of the project products

- Engineer supplies

- time of formation

- Investment, partnership agreement and welding

- Adapt the management plan to the project

- Creation and motivation

- Project risk assessment and change

-Development

- Shareholder management

- Good governance

- Completion of the project

The main strategies which are appeared as result of the actions and functions of the project manager is:

1) Finalizing Project Details

2) Setting Clear Expectation

3) Choosing the right team and system

4) Defining milestones

5) Establishing clear communication

6) Managing project risks

7) Avoiding scope creep

8) Evaluating the project after compilation

7 0
3 years ago
40. Using simple math, the Water Utility Fund of Eugene, Oregon has the following subtotals on its December 31, 2019 Statement o
alekssr [168]

Answer:

B. $1,260

Explanation:

The computation of the net position unrestricted is shown below

Unrestricted Net Position is

= Total Current and accrued Assets + Other assets - current liabilities

= $2,000 + $60 - $800

= $1,260

We simply added the other assets and deduct the current liabilities to the total current and accrued assets so that the amount could come in a correct way

Therefore all other information that is not considered is irrelevant. Hence, ignored it

3 0
3 years ago
Roman loves corn bread. He buys corn meal and wheat flour in order to make corn bread. His recipe calls for two cups of corn mea
ale4655 [162]

Answer:

(B) U(c,f)=min{2c,f}

Explanation:

This is an example of Leontif utility function which states that the preferences of a consumer is to a constant ratio of quantities of two or more goods in his demand bundles and having an extra unit of a single good will not increase the utility of the consumer and will make the extra unit to waste. But having more units of all the goods in the demand bundle which maintain the constant ratio will increase the utility of the consumer.

A good example usually used in economics is that of a pair of shoe. Having one right and one left of a type of shoe gives a consumer utility at a constant ratio of 1:1, and increasing each leg by multiple of one at every point in time will increase the utility of the consumer, while increasing just only one makes the utility not to change. For instance, having only two left shoe will not give the consumer any utility and make both the left shoe useless.

In the question, the ratio of cups of corn meal, denoted by c, and cups of flour, denoted by f, is 2:1. This implies that to increase the utility of the consumer, c has to increase by a multiple of 2 at every point in time while f has to increase by one at the same point in time to maintain the constant ratio of 2:1. Increasing only c by 2 or only f by 1 will maintain the constant ratio and it will lead to a waste of the increased unit of the affected commodity.

Therefore, option (B) U(c,f)=min{2c,f} is the correct answer that gives a constant ratio of 2:1 = 2c:f.

I wish you the best.

7 0
3 years ago
Write the name of trainings offered by Vocational Training Center​
nataly862011 [7]

Answer:

<h2>Common Vocational Courses</h2><h3>3.1 Healthcare and Social Assistance.à</h3><h3>3.2 Construction Industry.</h3><h3>3.3 The Manufacturing Sector.</h3><h3>3.4 Food Service.</h3><h3>3.5 Accounting and Bookkeeping.</h3><h3>3.6 Cosmetology and Hair Stylists.</h3><h3>3.7 Computer and IT Support.</h3><h3>3.8 Trucking and Transport Industry.</h3>

Explanation:

hope it help brainliest pls

8 0
3 years ago
Other questions:
  • Assume that Jocelyn is comparing two fixed-rate loan options, a 15 year and a 30 year mortgage. Both options have the same inter
    5·2 answers
  • A single-stock futures contract on a non-dividend-paying stock with current price $250 has a maturity of 1 year. If the T-bill r
    11·1 answer
  • The sales department of a consumer products organization realized that its rivals were adopting new customer relationship manage
    14·1 answer
  • Sandra Kristof sells furniture for McKinney Furniture Company. Kristof is having financial problems and takes​ $650 that she rec
    10·1 answer
  • A company makes a credit sale of $750 on June 13, terms 2/10, n/30, on which it grants a return of $50 on June 16. What amount i
    11·1 answer
  • A. Following are the transactions of a new company called Pose-for-Pics.
    7·1 answer
  • Below, you are given the total revenue and total cost associated with producing and selling different quantities of a good. You
    13·1 answer
  • Sifa Company is selling for Shs60.00 per share today. In one year, Sifa Company will be selling for Shs58.00 per share, and the
    6·1 answer
  • Why is it important to know about your digital footprint?
    8·1 answer
  • When it comes to managing a corporation, the corporation relies on its board of directors and officers.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!