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likoan [24]
1 year ago
13

If Virusfree Inc's stock sells for $40, pays a $4.25 dividend, and the stock is expected to grow at a constant rate of 5%, which

one of the following would be the estimated cost of equity? 15.63% 17.46% 14.52% 12.69%
Business
1 answer:
Alika [10]1 year ago
6 0

Answer:

<u><em>15.63%</em></u>

Explanation:

The answer is simply calculated by putting a simple formula in place.

The formula is, P = D/(r-g)

Hence, applying the formula, we have the following values,

P: 40 , D: 4.25 , g: 0.05 & r: ?

Step 1: 40 = 4.25/(r-0.05)

Step 2: r = (4.25/40)+0.05

Hence the cost of equity is = 15.63%

Thankyou.

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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
1 year ago
Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts for the exclusive right to m
Alchen [17]

Answer:

The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.

Explanation:

We have to compare the present-value of both plans to answer this question.

The Plan A has a present value of $30,000 as is an inmediate payment.

The Plan B has both an annual payment and a royalty, for a span of ten years.

The present value for Plan B is:

PV_b=\sum_{i=1}^{10}(1000+0.50q)/(1+i)^i

This can be simplified with a annuity factor for 10 years, with i=10%.

A_{10}=\frac{1-(1+i)^{-10}}{i}= \frac{1-1.1^{-10}}{0.10}\\\\A_{10}=\frac{1-0.386}{0.10}=\frac{0.614}{0.10}=6.14

Then, the PV can be calculated as:

PV_b=6.14(1,000+0.50q)\\\\PV_b=6,140+3.07q

To be indifferent, both present values have to be equal:

PV_b=PV_a\\\\6,140+3.07q=30,000\\\\q=(30,000-6,140)/3.07=23,860/3.07=7,772

The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.

6 0
1 year ago
After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and
ExtremeBDS [4]

Answer:25,000 in 12 years = 25,000*(1.09)^12= $70,316

Value of $7,500 deposits in 6 years

Use financial calculator and input these values

N=6

PV=0

PMT=7,500

I=9

Compute FV= 56,425, after this

PV= 56,425

PMT= 15,000

I=9

N=6

Compute FV=$ 207,480

We will have (207,480+ 70,316) = $277,796 in 12 years to start our business.

                                 

Explanation:

4 0
1 year ago
"Your team is allocated a project involving a major client, the Beswick Company. Although the organization has many clients, thi
ser-zykov [4K]

Answer:

B. a high degree of centrality

Explanation:

According to the model of power, there are four contingencies of power which are; <u>centrality</u> ,substitutability, visibility and discretion and each may be high or low within the organization, depending on the scenario.

Centrality refers to <u>how dependent others are, on the person or group holding power, and to what extent the actions of those holding power can affect the people depending on them.</u>

The higher the number of people dependent on the power holder, the higher the degree of centrality.

Therefore, my team has a high degree of centrality because the work of several other teams are dependent on my team's performance.

6 0
1 year ago
Why are infectious agents and toxins ("select agents") listed in the "additional requirements for facilities transferring or rec
nika2105 [10]
They are given additional regulatory oversight by CDC BECAUSE THE ITEMS POSE A SEVERE THREAT TO PUBLIC HEALTH AND SAFETY. 
Because of the high threat that the items pose to the society's health, regulations have to be put in place to control their transportation and use in order to protect the safety and health of humans, animals and plants and plant products. 
8 0
1 year ago
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