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dem82 [27]
2 years ago
14

Symon's Suppers Co. has announced that it will pay a dividend of $4.27 per share one year from today. Additionally, the company

expects to increase its dividend by 4.6 percent annually. The required return on the company's stock is 10.8 percent. What is the current share price
Business
1 answer:
Ganezh [65]2 years ago
8 0

Answer:

The price of the stock today is $65.02

Explanation:

The current price of the stock can be calculated using the constant growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock.

The formula for the price of the stock today under the constant growth model is,

P0 = D1 / (r - g)

Where,

  • D1 is the dividend expected to be paid next period
  • r is the required rate of return
  • g is the growth rate in dividends

To calculate the price today, we use the dividend for the next period. Thus, we will use D2  to calculate the price of the stock at Year 1 and will discount it back to today to calculate the price today.

P0 = [(4.27 * (1+0.046)) / (0.108 - 0.046)] / (1+0.108)

P0 = $65.017 rounded off to $65.02

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You have been approached by the editor of Gentlemen’s Magazine to carry out a research study. The magazine has been unsuccessful
horsena [70]

Answer:

The management research question capable of developing a scientific proposal will be questions that will address the concerns of the management.

1. How Gentlemen’s Magazine can be marketed to shoe manufacturers

2. What is the profitability of shoe manufacturing?

3. What are the main sources of sales for shoe manufacturer?

4. What percentage of clothing stores also deal in the sales of shoes?\

5. What is the percentage demand of male shoes?

6. What is the profitability of shoe sales in general?

7. Will men shoes be a profitable venture for Gentlemen’s magazine? and how profitable?

8. What is the frequency of purchase of men's shoes in a year?

9. How many pairs of shoes do men purchase at one time?

10. What types of men shoes are most likely to be purchase by men?

11. What is the preferred colors of shoes purchased by men?

Explanation:

The management research question capable of developing a scientific proposal will be questions that will address the concerns of the management.

1. How Gentlemen’s Magazine can be marketed to shoe manufacturers

2. What is the profitability of shoe manufacturing?

3. What are the main sources of sales for shoe manufacturer?

4. What percentage of clothing stores also deal in the sales of shoes?\

5. What is the percentage demand of male shoes?

6. What is the profitability of shoe sales in general?

7. Will men shoes be a profitable venture for Gentlemen’s magazine? and how profitable?

8. What is the frequency of purchase of men's shoes in a year?

9. How many pairs of shoes do men purchase at one time?

10. What types of men shoes are most likely to be purchase by men?

11. What is the preferred colors of shoes purchased by men?

8 0
1 year ago
Respect for an able leader's decisions goal attainment and customer satisfaction are examples of
quester [9]
Respect for an able leaders goal accomplishments, decisions and customer satisfaction is an example of appreciation of the leader's fine qualities and showing that the leader is carrying out his performance according to his/her expectations of what being a leader is.
5 0
2 years ago
With respect to delaying revenue recognition until completion of a long-term contract, it is the case that: Multiple Choice A) E
hichkok12 [17]
<h2>Estimated losses on the overall contract are recognized before the contract is completed. </h2>

Explanation:

Revenue recognition cannot be done prior to the completion of contract.

But the asset can be created. Only after the contract gets completed the revenue recognition can be realized.

For a long-term project, the revenue can be recognized based on the percentage of completion.

Revenue recognition keeps financial transactions aligned.

Option A: valid

Option B Invalid, because expenses are also recognized

Option C: This process is acceptable.

Option D: Gains and profits are calculated in this type of method

8 0
2 years ago
Which best describes the barrier to trade known as dumping? Destroying shipments of imports to force consumers into purchasing d
Lana71 [14]

Answer: Selling exports abroad at a lower price than the domestic price.

Explanation:

Dumping is a practice in international trade where the country exporting, does so at a price that is lower than the domestic price of the good being exported in the importing country.

This allows the country exporting to gain more market share but can also lead to the collapse of the domestic industry thereby allowing for an export based monopoly to form.

An example would be Japan selling electronics in the U.S. at lower rates to capture market share even though those same electronics commanded a higher price in Japan.

7 0
1 year ago
Which of the following is true if the production volume​ decreases? A. average cost per unit decreases B. fixed cost per unit in
enot [183]

Answer:

B. fixed cost per unit increases

Explanation:

As we know that

If the production volume increases, the fixed cost per unit is decreases as it reflect an inverse relationship between the fixed cost per unit and the production volume

Let us take an example

Fixed cost = $20,000

Production volume = 100,000

Decrease in production volume = 80,000

So, the fixed cost per unit in the first case is

= 20,000 ÷ $100,000

= $0.2

And, the fixed cost per unit in the second case is

= 20,000 ÷ $80,000

= $0.25

Therefore, the fixed cost per unit increases

5 0
1 year ago
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