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riadik2000 [5.3K]
1 year ago
5

Assume the Atlas Corporation is expected to pay a $5 cash dividend next year. Dividends are expected to shrink at a rate of 3% p

er year. The expected return from the market portfolio is 13% and riskless interest rate is 6%. Use the constant-growth dividend discount model (DDM) to determine the intrinsic value of Atlas stock if the company has a beta of .5.
Business
1 answer:
Simora [160]1 year ago
3 0

Answer: $40

Explanation:

First find the required return using CAPM;

Required return = Riskfree rate + beta * (Market return - riskfree rate)

= 6% + 0.5 * (13% - 6%)

= 9.5%

Then use DDM to determine intrinsic value;

= Next dividend / (Required return - growth rate)

= 5 / (9.5% - (-3%))

= $40

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. ________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impr
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Answer:

D. Positioning.

Explanation:

Positioning is a market strategy that tries to create a product with similar features to that of its competitors and tries to drive the image through marketing.



This ịs a very powerful marketing concept because it builds a product's reputation and makes it distinguishable from the products of other competitors. This is done to try to occupy the mind of its intended customers and get them to see the difference between their product and that of rival companies. This type of advertising has become very common.

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1 year ago
Forte Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 11,000 units were started and as
LUCKY_DIMON [66]

Answer:

a. 10,000 units

Explanation:

The computations of units completed are shown below:

= Beginning work in process units + units started - closing work in process units

= 3,000 units + 11,000 units - 4,000 units

= 10,000 units

For this question, we ignored the equivalent units as the question has asked about the completed units only

So, all other information is irrelevant

6 0
2 years ago
ABC Company is trying a new method of employee motivation. Entry-level employees undergo a year of close supervision and bi-week
Serhud [2]
<h2>ABC Company is using <u>Job Enrichment </u>Technique.</h2>

Explanation:

ABC Company is trying out the following:

  • Hand-holding the employees according to their expertise and the position that they handle
  • Provide opportunity to grow up the level
  • Make sure that industry goals are achieved
  • Provide task in such a way that it enhances the skills of employee associated with the organization's goal
  • Increasing the challenging level with proper training and guidance

Let us understand the term "Job Enrichment"

It is the "motivation technique" used in the organization to provide greater satisfaction to the employee.

3 0
2 years ago
The following costs relate to Salad Box Company for a relevant range of up to 10,000 units annually: Variable Costs: Direct mate
Vadim26 [7]

Answer:

Equations best describes the equation to determine total profit for a sales volume: Total profit  = $10.00X – ($4X + $30,000)

Explanation:

Total variable costs to produce 1 units = Direct materials + Direct labor + Manufacturing Overhead + Selling and administrative = $1.25 + $0.75 + $1.00 + $1.00 = $4 per unit

Fixed Costs = Manufacturing overhead + Selling and Administrative = $20,000 + $10,000 = $30,000

Box sells each unit for $10.00. X is the number of units are sold

Total profit = Sales revenue - (Total variable costs + Fixed Costs) = $10.00X – ($4X + $30,000)

3 0
1 year ago
Which entities constitute the primary and secondary stakeholders of a business, respectively? __________ are some of the primary
horsena [70]
The correct answers are as follows:
1. The primary stakeholders of a business are defined as those individuals who engage internally in economic transactions with the company. Primary stakeholders have direct interests in the company and they are affected by the policies, objectives and the actions of the company.
Secondary stakeholders are those individuals who do not have direct interest in the company.
2. SHAREHOLDERS AND CUSTOMERS are some of the primary stakeholders of a business. Other examples of primary stakeholders are: suppliers, creditors, employees, investors, etc.
The primary stakeholders of a company depend on the financial well being of the company for their own benefits and the company also depends on their efforts in order to succeed.
3. THE GENERAL PUBLIC AND THE COMMUNITY IN WHICH A COMPANY IS LOCATED are some of the secondary stakeholders of a business. Other examples of secondary stakeholders are: the media, business support groups and activist groups.
It is very important for a company to identify and work with its secondary stakeholders. Companies who recognize and cooperate with their secondary stakeholders usually achieve good reputation and goodwill and always get supports for their expansionary efforts.
3 0
2 years ago
Read 2 more answers
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