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mel-nik [20]
2 years ago
9

Paccar's current stock price is $75.10 and it is likely to pay a $3.29 dividend next year. Since analysts estimate Paccar will h

ave a 14.2 percent growth rate, what is its required return? Multiple Choice 15.39 percent 17.94 percent 19.62 percent 18.58 percent
Business
1 answer:
Kobotan [32]2 years ago
8 0

Answer:

18.58 percent

Explanation:

Using the growth model formula we have

P₀ = \frac{D1}{Ke-g}

Here P₀ = Current market price = $75.10

D₁ = Dividend at year end = $3.29

Ke = Expected return = to be calculated

g = Growth rate = 14.2%

$75.10 = \frac{3.29}{Ke - 0.142}

Ke - 0.142 = \frac{3.29}{75.10}

Ke - 0.142 = 0.0438

Ke = 0.0438 + 0.142 = 0.1858 = 18.58%

Required rate of return = 18.58%

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What sourcing category would the following items typically be classified in? Item A: high volume/value, low risk, multiple poten
Nimfa-mama [501]

Answer: Item A - Single Sourcing Strategy

Item B - Multiple Supplier Strategy

Explanation:

Item A:

This item is in high volume and has a low risk factor because there are multiple potential Suppliers present in the market. Because of this you can choose the SINGLE SOURCING STRATEGY because you can easily switch to others if one is unable to supply you with the good.

Item B:

This item has a low volume as the Suppliers are equally low. This means that the risk factor here is quite high. Because of these factors it is best to use a MULTIPLE SUPPLIER STRATEGY to mitigate the risk that one supplier will not have it. This was many options are available.

If you need any clarification do react or comment.

4 0
2 years ago
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered read
mina [271]

Answer:

The correct answer is C

Explanation:

A brand named Maybelline released an ad for the product of age minimizing makeup and offering the readers the $1 off coupon, so in terms of the communication, the source is the term which is described as the person or the reader who use the service or the product.

Therefore, the source of the ad is the readers who redeem the coupon featuring off $1 on the product.

3 0
2 years ago
Division A reported income from operations of $975,000 and total service department charges of $675,000. As a result, a.consolid
alexgriva [62]

Answer:

c.income from operations before service department charges was $1,650,000

Explanation:

We can see from the information in the question, that income from operations and service department charges sum a total of $1,650,000

Gross income before service department charges = $975,000 + $675,000

                                                                                    = $1,650,000

8 0
2 years ago
Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the
Mila [183]
QUESTION 1.
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways <span>are as follows:
I. R</span>aise social security retirement age
II. Reduce medicare for wealthy seniors
III. Raise medical <span>healthcare contributions


</span>QUESTION 2.
According to Davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the United States. In his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the Democrats aim at making sure that everyone lives in an “equitable, fair society”. I think I would agree more with the Democrat philosophy because equity and fairness to everyone is<span> a key public value outcome in every society.


</span>
QUESTION 3.
<span>The two fiscal issues that are hyper-partisan are as follows:
I. </span>Military defense spending.
II. I<span>ssues of taxes
</span>- The parties are so divided chiefly because they have extreme opposites points of view on several issues.
- On the issues, I lean towards the Democrat view. 


QUESTION 4.
Towards the end of his talk, Davidson says he fears that the longer we delay any solution, the more the world will look to the U.S. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. He explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.
4 0
2 years ago
Consider the following balance sheet for TD. Assets Liabilities Reserves 493 Deposits 2900 Loans 2407 4. Suppose that TD is a ty
anzhelika [568]

Answer:

what is the money multiplier?

  • 5.88

what is the total change in the M1 Money Supply?

  • Just because a client deposits money into a bank it does not increase M1, it just changes its composition. The immediate effect of the deposit in the total money supply is nothing. If the bank loans the money to other clients ($581 in total loans are possible), and other clients deposit the funds in the same bank or other banks, then the money supply could increase up to $3,416.

what is the minimum amount by which the money supply will increase?

  • If the bank loans the disposable funds, the money supply should increase by $581 at least.

Explanation:

The bank's required reserve ratio = reserves / deposits = $493 / $2,900 = 0.17 or 17%.

the money multiplier = 1 / required reserve ratio = 1 / 0.17 = 5.88

if a client deposits $700, the minimum amount by which the money supply will increase = $700 x (1 - required reserve) = $700 x (1 - 0.17) = $700 x 0.83 = $581

the maximum amount by which the money supply could increase = ($700 x 5.88) - $700 = $4,116 - $700 = $3,416

6 0
2 years ago
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