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Brrunno [24]
2 years ago
7

Waller Co. paid a $0.137 dividend per share in 2000, which grew to $0.55 in 2012. This growth is expected to continue. What is t

he value of this stock at the beginning of 2013 when the required return is 13.7 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.)
Business
1 answer:
Elena L [17]2 years ago
7 0

Answer:

Dividend in year 2000 (Do) = $0.137

Dividend in year 2012 (D12) = $0.55

Required return (Ke) = 13.7% = 0.137

D12 = Do(1 + g)n

$0.55 = $0.137(1 + g)12

<u>$0.55</u> = (1 + g)12

$0.137

4.0146 = (1 + g)12

12√4.0146 - 1 = g

1.1228 - 1 = g

g = 0.1228 = 12.28%  

Po = Do<u>(1 + g) </u>

            ke - g

Po = $0.55<u>(1 + 0.1228) </u>

                 0.137 - 0.1228

Po = $0.55<u>(1.1228) </u>

                   0.0142  

Po = $43.49  

Explanation:

In this case, we need to calculate the growth rate using the formula D12 = Do(1 + g)12. Then, we will calculate the current market price, which is a function of current dividend paid, subject to growth rate, divided by the excess of cost of equity over growth rate.

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An institutional broker wants to review their book of customers to see which are most active. Given a list of trades by customer
bixtya [17]

Answer:

Alpha

Beta

Delta

Epsilon

Zeta

Explanation:

The customers list should be updated and sorted periodically to identify regular customers and those customers with big orders. There are many customers in the list and the list is not sorted according to alphabetical order. Those customers which account for more than or at least 5% of total trade are Alpha, Beta, Delta, Epsilon and Zeta. These are place first in list among other customers.

8 0
2 years ago
A country has a noninstitutionalized population of 243 million people. out of that number, 38 million are under the age of 16 70
rosijanka [135]

Answer:

The answer is 60%

Explanation:

Labor force is the total number of people that have job(employed) and the number of people who are willing, able and actively searching for job(unemployed) in a population.

Labor force participation rate is calculated by dividing the labor force by the noninstitutionalized population.

Labor force = employed + underemployed + unemployed

= 96 + 31 + 8

=135 million

So we have:

(135 ÷ 243) x 100 percent.

60% (the nearest whole percentage)

3 0
2 years ago
Suppose you are considering renting an apartment.​ You, the​ renter, can be viewed as an agent while the company that owns the a
Ipatiy [6.2K]

Answer:

Kaynaddi here is the answer of your question

The agent is not the owner of the apartment so he will not take care of the apartment, because he isn't supposed to pay the cost of fixing damages in the apartment. To mitigate this risk renter can be asked to pay a deposit which can be adjusted for any damages done in the apartment.

A provision in the lease agreement for the annual renewal allows an incentive for a renter who is long term. Doing so will help maintain leased apartment.

3 0
2 years ago
Digby's product manager is considering lowering the price of the Daft product by $2.50 and wants to know what the impact will be
Dvinal [7]

Answer:

D.  34.00%

Explanation:

The computation of the new contribution margin is shown below:

As we know that

Contribution Margin = Net Sales Revenue - Variable Expenses

where,

Net sales revenue is

= 604 units × $32.5

= $19,630

The variable expense = Total material cost + total labor cost

Total Material Cost = 604 units × $14.36 = $8,673.44

Total Labor Cost = 604 units × $7.09 = $4,282.36

So, the variable expense is

= $8,673.44 + $4,282.36

= $12,955.8

Now

Contribution margin = $19,630 - $12,955.8 = $6,674.2

And,

Contribution margin ratio = Contribution margin ÷ net sales

So,  Contribution margin = $6,674.2 ÷ $19,630

= 34.00%

4 0
2 years ago
Isn’t "corporate entrepreneurship" an oxymoron? Do the characteristics of an established organization, such as its routines and
pashok25 [27]

Answer:

Isn’t "corporate entrepreneurship" an oxymoron?

I guess that most people would believe that corporations and entrepreneurs and completely opposite, and for the most part they are right. But some corporations actually do have entrepreneurial spirit or at least try to. E.g. 3M is famous for allowing their employees some creative time so that they can come up with new ideas. Google is another example of a large corporation that allows for creative time while at work.

Do the characteristics of an established organization, such as its routines and structure, increase efficiency but at the same time kill any entrepreneurial spirit?

Routines, schedules and corporate structure not only kill, but they rather massacre and exterminate entrepreneurial spirit and creativity. One great example of how corporations do not allow people to think or act differently can be seen in the movie about Ford competing in Le Mans.

Is there any way that a company can have the best of both worlds?

I guess that it is difficult, but not impossible for a company to have corporate entrepreneurship. The problem is that corporations will probably believe that it is a waste of money to pay for their employees to do nothing and just wander around thinking about new ideas. Creativity has a cost and not everyone is willing to pay for it.

8 0
2 years ago
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