If you estimate that firm b will pay a dividend of $1 per share in one year, and that the dividend will grow at 3% per year indefinitely, what should be the value of stock b?.
Answers
Based on the fact that Firm B will pay a dividend of $1 in one year and the growth rate of the dividends, the value of stock which is Stock B, will be $9.17
How to find the value of the stock?The value of a stock can be found by the Gordon Growth model as:
Value of stock = Next dividend / (Expected return - Dividend growth rate)
The Next dividend by Firm B is said to be $1.
The Expected return would be the average return of Firm B which is 13.9%.
The Dividend growth rate is 3%.
The value of the stock is therefore:
Value of stock = Next dividend / (Expected return - Dividend growth rate)
Value of stock = 1 / (13.9% - 3%)
Value of stock = 1 / 10.9%
Value of stock = $9.17
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Related Questions
Jeffrey is having a busy day
Answers
Answer:
Tell Jeffery to take a nap
Explanation:
What combines data from different channels into one holistic view of the customer and analyzes the data for insights on customer segmentation, demographics, spending, etc.
Answers
Omnichannel marketing is one which combines data from different channels into one holistic view of the customer.
The Omnichannel marketing refers to integration of the different channels that an organizations uses to interact with its consumers the main goal of creating a consistent brand experience.
It enables the organization to engage with brands and leads to overall better customer experience.
Therefore, in conclusion, the Omnichannel marketing is one which combines data from different channels into one holistic view of the customer.
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managers will often allocate common fixed expenses to business segments because:
Answers
Managers often allocate common fixed expenses to business segments because it allows them to better understand the profitability of each segment.
Common fixed expenses are expenses that cannot be directly traced to a specific segment, such as rent or salaries for top-level management. By allocating these expenses to each segment based on a predetermined allocation method, managers can more accurately determine the cost of each segment's operations.
This is important because it allows managers to make informed decisions about which segments to invest in or divest from. If one segment appears to be less profitable than the others, managers may decide to reduce its funding or discontinue its operations altogether. Additionally, allocating common fixed expenses can also help with performance evaluation and incentive compensation.
However, it is important to note that the method used to allocate common fixed expenses can greatly impact the accuracy of the results. Therefore, managers must carefully consider which allocation method is most appropriate for their business and ensure that it is consistently applied.
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The taylor rule puts _________ as much weight on closing the unemployment gap as it does on closing the inflation gap.
Answers
The Taylor Rule is a rule that links inflation and economic growth to a central bank's policy rate.
It was created in 1993 by economist John Taylor and presupposes an equilibrium federal funds rate that is 2% higher than the yearly inflation rate.
Thus, Twice is the answer for the blank.
Why is the Taylor principle significant, What does it entail?It means that the real interest rate should be raised when inflation increases.
The Taylor principle is the theory that, in order to reduce economic heat when inflation rises (by raising the real interest rate), the nominal interest rate should be raised "more than one-for-one."
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after you finish giving a presentation, an audience member asks your team for additional information on your topic. your coworker is answering the question thoroughly, but you notice that the rest of your audience has tuned out. how can you re-engage your audience? select all that apply.
Answers
You might change to a different question or ask a new question of your audience if you notice that they are losing interest.
Describe Presentation.A presentation is how a speaker communicates information to an audience. A presentation's typical goals include informing, persuading, inspiring, motivating, creating goodwill, or presenting a novel concept or service. Speeches, opening statements, lectures, and demonstrations can all be included in presentations. For presentations, preparation, planning, organization, writing, the use of visual aids, stress management, and question-answering are frequently required. Presentations are widely used in tertiary job settings, like when accountants give a corporation's detailed financial report. An interactive presentation has the advantage of capturing more audience attention and encouraging audience engagement, which promotes a sense of community.
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You have been hired as the new controller for the Radiance Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements: a. Inventory at December 31,2022 , was understated by $6,000b. Inventory at December 31,2023 , was overstated by$9,000c. On December 31,2023 , inventory was purchased for $3,000. The company did not record the purchase until the inventory was paid for early in 2024. At that time, the purchase was recorded by a debit to purchases and a credit to cash.
Answers
These errors need to be corrected to ensure the accuracy of the financial statements. An adjustment of $6,000 needs to be made to increase the inventory balance at the end of 2022, an adjustment of $9,000 needs to be made to decrease the inventory balance at the end of 2023, and a journal entry needs to be made to record the inventory purchase of $3,000 in 2023.
Here's a step-by-step explanation to address the errors you've mentioned:
1. Inventory at December 31, 2022, was understated by $6,000:
To correct this error, you need to increase the inventory balance at December 31, 2022, by $6,000. This will also require an adjustment to the retained earnings balance for 2022.
2. Inventory at December 31, 2023, was overstated by $9,000:
To correct this error, you need to decrease the inventory balance at December 31, 2023, by $9,000. This will also require an adjustment to the retained earnings balance for 2023.
3. Inventory purchased for $3,000 on December 31, 2023, was not recorded until paid for in 2024:
To correct this error, you need to record the inventory purchase in the 2023 financial statements. You should debit inventory and credit accounts payable for $3,000 on December 31, 2023. Then, when the payment is made in 2024, you should debit accounts payable and credit cash for $3,000.
By following these steps, you can correct the errors related to the 2022 and 2023 financial statements for the Radiance Company.
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In IS implementation, which factor can lead to the risk of loss of confidentiality?
A.
loss of key employees
B.
poor password practices
C.
loss of hardware
D.
unskilled personnel
Answers
Answer:
B. poor passward practices
Explanation:
I dont have one exept that I took the edmentum test and it was right.
Answer:
THe answer is B
Explanation:
in business continuity planning, what is the primary focus of the scope?
Answers
The primary focus of the scope in business continuity planning is to identify and prioritize critical business functions and processes that must be maintained in the event of a disruption or disaster.
What does this have?This includes assessing risks and potential impacts, developing strategies for mitigating those risks, and implementing measures to ensure continuity of operations.
The scope also involves defining roles and responsibilities of key personnel and establishing communication protocols to ensure timely and effective response and recovery efforts.
By having a clearly defined scope, organizations can better manage potential disruptions and minimize the impact on their business operations, reputation, and bottom line.
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according to the loanable funds model, when government spending increases but taxes are not raised, interest rates:
Answers
Based on the Loanable Funds model, when government runs a budget deficit, the interest rates increases because of the increase in the demand of loanable funds by the government.
The loanable funds model illustrates the relationship between the supply and demand of loanable funds in the market. In the graph of the loanable funds model, the x-axis is the real interest rates and the y-axis represents the quantity of loanable funds.
When the government spending increase but the taxes are not raised, this will lead into a budget deficit condition where the government spending exceeds its income. This will put government in need to borrow money from the public or called as the crowding out effect. This condition will push the real interest rate higher to meet the needs of the money borrowed.
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Imagine that you are a college student, and you use Tasks to manage all your school assignments. Would there be any disadvantages to this system?
Answers
Homework can develop time management skills, forcing students to plan their time and make sure that all of their homework assignments are done on time.
Answer:
Explanation: i though the same thing
which of the following statements is true about the relationship between business processes and information systems? group of answer choices information systems incorporate all business process activities and hence, should be developed before business processes. the relationship between business processes and information systems is one-to-one. developing information systems before business processes ensures that all activities are considered in the development process. a business process need not relate to any information system, but an information system relates to at least one business process.
Answers
A business process need not relate to any information system, but an information system relates to at least one business process, this statements is true about the relationship between business processes and information systems.
A business process is a logically related sequence of actions that specify how particular business tasks are carried out. It is a distinctive method of coordinating work, information, and knowledge inside an organization. Business processes are important for managers to be aware of since they affect how well a firm can conduct its operations and could provide a competitive edge. Each of the main business functions has its own unique business processes, but many of them are cross-functional. Information systems assist firms restructure and streamline business operations by automating certain of these procedures.
The official organizational division in charge of information technology services is the information systems department. It is in charge of maintaining the networks, data storage, hardware, and software that make up the company's IT infrastructure. The department is often led by a CIO and is made up of professionals including programmers, systems analysts, project managers, and information systems managers.
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what are the economic factors influencing the communication industry as a whole and how does this impact the economic base
Answers
According to The concept of the economic base is very important in the theory and also that is the practice of economic development. When We think of the economic base as the engine that is driving the economy of the community. Thus, It is the sector or sectors providing exports from the local area to the rest of the world.
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Which quality of accounting information states that the information is verifiable and is not subject to opinion.
Answers
Reliability!
Hope this helps, Good luck! :)
madsen motors’ bonds have 22 years remaining to maturity. they have a $1,000 par value and the coupon interest rate is 9%. interest is paid annually. if the yield to maturity is 11%, what is the bond’s current market price?
Answers
The bond will cost $834.48 on the open market if the yield to maturity is 11%.
What is the valuation of bonds?
Bond valuation is a method for calculating the hypothetical fair value of a specific bond. A bond's face value also referred to as its par value or cash flow, and the value of the bond at maturity are both calculated as part of the valuation process. A bond's par value and interest payments are fixed, so an investor uses bond valuation to determine what rate of return is necessary for a bond investment to be profitable.
Calculation:
Appling the following formula for bond valuation;
Value of a bond = Present Value of Interest Payment + Present Value of Principal Payment
Present Value of Interest Payment = Coupon Amount * PVIFA
Where,
r is the bond's YTM.
n is the bond's remaining maturity period.
PVIFA stands for Present Value Interest Factor of an Annuity at Rate (r%), Number of Years.
The Present Value of the Principal Amount = Principal Amount * PVIF
Where,
PVIF is the Present Value Interest Factor at r%, n years
In this question,
Par value = $ 1000
n = 22 years
r =11%
Coupon amount = 1000* 9% = 90
\(PVIFA = \frac{1 - (1 + r )^{-n} }{r} \\PVIF = (1 + r)^{-n} \\Price = 90 * \frac{1 - (1 + 0.11)^{-22} }{0.11} + 1000*(1+0.11)^{-22}\)
= $834.48.
Therefore, the bond will cost $834.48 on the open market if the yield to maturity is 11%.
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Examine the supply and demand schedules for cell phones. How much would
a seller charge if he or she wanted to sell cell phones for their equilibrium
price
Answers
Answer: $400
Explanation:
The owner of a bike shop would like to analyze the sales data to determine if the business is growing, declining, or remaining flat. The owner has the following data:
Sales Revenue Last Year =$125,000
Sales Revenue Current Year = $150, 000
What is the Sales Growth?
Do not forget to type the % symbol after multiplying your result by 100 to convert to percentage!
Hint: Your answer will NOT have decimal point.
Example: 75%
Answers
To calculate the sales growth, you can use the following formula:
(Sales Revenue Current Year - Sales Revenue Last Year) / Sales Revenue Last Year x 100%
Plugging in the numbers, we get:
($150,000 - $125,000) / $125,000 x 100% = 20%
Therefore, the sales growth is 20%.
Sales Growth = (Sales Revenue Current Year - Sales Revenue Last Year) / Sales Revenue Last Year × 100%
Sales Growth = ($150,000 - $125,000) / $125,000 × 100%
Sales Growth = $25,000 / $125,000 × 100%
Sales Growth = 0.2 × 100%
Sales Growth = 20%
Therefore, the Sales Growth is 20%.
accounting profits at a firm's break-even point are
Answers
At a firm's break-even point, accounting profits are equal to zero. This means that the revenue generated by the firm exactly covers all its costs, resulting in no net profit or loss.
The break-even point is the level of sales or production volume at which total revenue equals total costs. It represents the point where the business covers all its fixed costs and variable costs but does not generate any additional profit. Any revenue earned beyond the break-even point would result in positive accounting profits, while falling short of the break-even point would result in accounting losses.
To calculate the break-even point, the firm's total costs, including fixed costs and variable costs, are compared to the revenue generated by the firm's products or services. Once the break-even point is reached, every additional unit sold contributes to generating positive accounting profits.
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how should a consumer seek remedy once they have experienced unfair financial practices
A trust in the other party to accurately adjust any errors made on their behalf
B Contact the other party one time only as opposed to multiple communications
C Contact local media organization to reveal any wrongs committed by the other party
D Take steps to properly file a dispute and engage an advocate to handle their case
How are consumers responsible for their own security
A They should create simple passwords using birthday and names instead of something more complicated
B They should always use open public networks because they are more secure than private networks
C They must join an identity protection service to protect themselves from identity theft
D They should use and regularly update an antivirus program to protect their personal information
Which statement correctly describes an internet security issues
A Phishing is an illicit software program which unwittingly sends private account information from a user's computer
B Spyware are individuals who attempt to get access to another person's computer to harm it somehow
C A virus is a harmful program that gets loaded onto a user's computer after visiting an infected website
D Hackers are attempts to deceive people into revealing personal information with fraudulent emails and social media requests
Answers
Answer: C
Explanation:
You welcome.
Erik's job is to negotiate the best price for his client, a retaller that sells high-end shoes. He approaches a shoe manufacturer with whom the retailer wants to carry out business. He tells the manufacturers that his client is willing to purchase 10 pairs of shoes of every size if they lower their price by 10 percent. What kind of intermediary is Erik?
A. distributor
B. consumer
C. wholesaler
D. broker
Answers
Answer:
D. broker
Explanation:
A broker is a person or a firm who organizes or arranges for financial transactions between two parties or more. A broker is an intermediary because they connect a willing seller to a willing buyer for a commission. Brokers do not take ownership of the products being transacted. They only create a link between buyers and sellers.
Erick is a broker. He acts on behalf of the retailer and connects them to the manufacturer.
(PLEASE ANSWER FAST!!) (19 POINTS)
One of the least important things you can do for yourself before you apply for a job is take an inventory of your skills and experiences.
A. True
B. False
Answers
It’s B trust me
Automatic stabilizers lead to changes in taxation and government spending as economic output varies. How do automatic stabilizers impact tax revenue and government spending during a recession?
Tax revenue will (increase / decrease / not change) and government spending will (increase / decrease / not change).
Suppose that the government is required to balance the budget. Which of the following is an appropriate discretionary approach during a recession and what effect would it have to the economy?
a. Cut taxes to encourage consumer spending which would minimize the effects of the recession.
b. Increase government spending to stimulate the economy causing an increase in overall aggregate demand.
c. Cut government spending to equal tax revenue possibly magnifying the effects of a recession.
d. Invest in public infrastructure that promotes employment and stimulates the economy.
e. Increase both government expenditures and taxes by the same amount.
Answers
Options a, c, and e, which involve cutting taxes, cutting government spending, or increasing both expenditures and taxes, can be counterproductive during a recession.
During a recession, automatic stabilizers have the following impact on tax revenue and government spending:
Tax revenue will decrease: As economic output decreases, individuals and businesses earn less income, leading to lower tax payments. This decline in tax revenue is primarily due to reduced income taxes and corporate taxes.
Government spending will increase: Automatic stabilizers, such as unemployment benefits and welfare programs, automatically expand during a recession as more people become unemployed or experience financial hardship. This increase in government spending is intended to provide support to individuals and stimulate economic activity.
Therefore, tax revenue will decrease, and government spending will increase during a recession due to the operation of automatic stabilizers.
If the government is required to balance the budget during a recession, the most appropriate discretionary approach would be:
b. Increase government spending to stimulate the economy, causing an increase in overall aggregate demand.
By increasing government spending, especially on infrastructure projects, the government can directly inject funds into the economy, creating jobs and boosting economic activity. This stimulates aggregate demand, leading to increased consumption and investment, and potentially helping to lift the economy out of recession.
Options a, c, and e, which involve cutting taxes, cutting government spending, or increasing both expenditures and taxes, can be counterproductive during a recession. Cutting taxes may not effectively encourage consumer spending if people are facing financial uncertainty, while cutting government spending may further exacerbate the recessionary pressures by reducing overall demand. Increasing both expenditures and taxes simultaneously may not provide the desired stimulus to the economy.
Option d, investing in public infrastructure that promotes employment and stimulates the economy, aligns with the idea of increasing government spending to boost economic activity. This approach can create jobs, enhance productivity, and have positive multiplier effects on other sectors of the economy.
It's important to note that the appropriate approach may vary depending on the specific circumstances and economic conditions of a country. Economic policymakers need to carefully consider the effectiveness and impact of different measures when addressing a recession.
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why does a company split its stock quizlet
Answers
A stock split can be a way for a company to make its shares more accessible and appealing to investors while also signaling its positive growth prospects in the market.
A company may choose to split its stock to make its shares more accessible and affordable for investors. By reducing the price of each share, more investors can afford to purchase the stock, which can increase the demand and liquidity for the company's shares.
Another reason a company may split its stock is to signal to the market that the company is performing well and expects to continue to do so in the future. The stock split can generate positive publicity and attract new investors who may be interested in the company's growth potential.
A stock split can also help to improve the liquidity of a company's shares, making it easier for investors to buy and sell the stock in the market. This can increase trading activity, which can lead to higher volumes and more efficient price discovery.
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(What is local technology? Differentiate between traditional technology and modern
technology into 3 points.)
Answers
Answer:
The technology that people use to assist their activities in daily life is called local technology.
And for the differences check the pic. hope it helps :)
Explanation:
Things like smartphones, tablets, gaming systems, and computers are examples of modern technology. Traditional technology includes things like handicrafts that were created before computers were invented.
What are modern technology and its importance?Modern technology is also providing tools to help us change people's lives and improve their conditions. These are the people who can improve their proficiency by using a cultural instrument. Modern technology refers to products, services, and infrastructure that are designed and built with the help of scientific knowledge and engineering. This includes software-based information technology, computers, and networks.
Prior to the Internet and mobile phones, traditional technology was used. Modern technology makes use of the Internet and mobile devices, allowing people to use it more quickly than traditional technology. Furthermore, it is possible that artificial intelligence was used in modern technology rather than traditional technology.
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how do economists determine whether a market is an oligopoly?
Answers
Economists determine whether a market is an oligopoly by looking at the market structure and behavior of firms in the market.
Oligopoly: An oligopoly is a market structure in which a small number of large firms control the majority of the market. This means that there is little competition in the market, which can lead to higher prices for consumers and less innovation from firms.
To determine whether a market is an oligopoly, economists will look at several factors, including:
1. The number of firms in the market: In an oligopoly, there are usually only a few large firms that dominate the market.
2. The market share of the largest firms: In an oligopoly, the largest firms have a significant market share, which means that they have a lot of power to influence prices and other market conditions.
3. The barriers to entry: In an oligopoly, it is difficult for new firms to enter the market, which means that the existing firms have even more power to control the market.
4. The behavior of firms in the market: In an oligopoly, firms may engage in collusion (working together to set prices) or other anti-competitive behavior that can harm consumers.In summary, economists determine whether a market is an oligopoly by looking at the market structure, behavior of firms in the market, and other factors such as barriers to entry.
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Which of these channel members is last in the distribution channel?
A.Retailer
B.Manufacturer
C.Consumer
D.Wholesaler
Answers
Answer:
C
Explanation:
They are the ones to use to products.
Answer:
C. Consumer
Explanation:
Took the test
a bank promises to pay 5.5% pa compound interest on deposits of £2337 if saved for 3 years. how much will the savings be worth at the end of the period mentioned? write your answer correct to 2 decimal places.
Answers
Answer:
£2,744.20
Explanation:
savings amounts after 3 years can be calculated using the formula below.
A = P x ( 1 + r) ^ n
Where A is the amount after three years
P = principal amounts: £2337
r: interest rate: 5.5% or 0.055
n is the number of periods: 3 years
A =£2337 x( 1 + 0.055)^3
A =£2337 x(1.055) ^3
A=£2337 x 1.174241
£2,744.20
Amount after 3 years will be £2744.20
A pay structure in which more efficient workers earn higher wages, as suggested by Frederick W. Taylor, is known as a(n) _____ system.
Answers
Answer:
differential rate.
Explanation:
A pay structure in which more efficient workers earn higher wages, as suggested by Frederick W. Taylor, is known as a differential rate system.
According to Frederick Winslow Taylor, a mechanical engineer and father of scientific management, some efficient workers may earn higher wage than their colleagues.
Bruce was driving to work yesterday when he was nearly run off the road by a speeding furniture delivery truck. On the back of the truck was a phone number to call if you believed the driver was not handling the truck safely. Rather than deciding to never buy furniture from this furniture company, Bruce called the company and complained about the truck driver. The person who took his call thanked Bruce for his concern, apologized for the driver and promised to reprimand him. Which service recovery strategy was the furniture store using
Answers
Answer: Encourage and track complaints
Explanation:
Encourage and track complaints is a method of customer service some organization implemented to curb some customer service issue or likely monitor how well their product and services are or how well their workers treat their customers. This method of customer service operation helps the firm not to loose potential clients and customers already with them but still likes in the hands the clients or customer's feedback.
Find the number of units that must be produced and sold in order to yield the maximum profit, given the equations below for revenue and cost. R(x)=5xC(x)=0.001x^2+0.7x+30 A. 2850 units B. 5700 units C. 4300 units D. 2150 units
Answers
The number of units that must be produced and sold in order to yield the maximum profit is 2150 units.Given:R(x) = 5xC(x) = 0.001x² + 0.7x + 30
To find:The number of units that must be produced and sold in order to yield the maximum profit.
Profit = Revenue - Cost
P(x) = R(x) - C(x)P(x)
= 5x - (0.001x² + 0.7x + 30)P(x)
= - 0.001x² + 4.3x - 30
Using the vertex formula:-
b/2a = - 4.3/2(-0.001)
= 2150
The maximum profit occurs when 2150 units are produced and sold. The number of units that must be produced and sold in order to yield the maximum profit is 2150 units.
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Please read the "Focus on International Issues" on the top of page 120 in your textbook. After reading, please discuss why Siemen's earnings were able to increase so much faster than their revenue? What would happen if their revenue would have fallen by 9.4%?
From 2017 to 2019 nestles revenue increased only 3.1 percent, but its operating earnings increased 59.0 percent. In other words its profit grew 19 times as fast as its revenue.
class is Managerial Accounting
FOCUS ON INTERNATIONAL ISSUES COST-VOLUME-PROFIT ANALYSIS AT A SWISS COMPANY The greater the percentage of a company's total costs that are fixed, the more sensitive the company's earnings are to changes in rev- enue or volume. Operating leverage, the relationship between the changes in revenue and changes in earnings, introduced earlier, applies to companies throughout the world, large or small. Nestle Manufacturing companies often have significant fixed costs. Nestle Group, SA is a large, food manufacturing company head- quartered in Vevey, Vaud, Switzerland. Most college students will be familiar with its candy products, but it is also a major producer in infant formulas. From 2017 through 2019 Nestle's revenues increased only 3.1 percent, but its operating earnings increased 59.0 percent. In other words, its profit grew 19 times as fast as its revenue (volume). This is a classic example of the effects of fixed costs, whether measured in dollars, euros, or Swiss francs. Studying Nestle offers insight into a true global enterprise. Though headquartered in Switzerland, it does business in almost ev- ery county in the world. In 2019 it generated less than 25 percent of Klaus Ohlenschlaeger/Alamy its revenues in Europe, let alone Switzerland. Its financial statements are presented in Swiss francs (CHFs), but it does business in 11 other major currencies. Its stock is currently traded on the SIX Swiss Stock Exchange, but it can also be purchased using ADRS (American De- pository Receipts) on the over-the-counter market in the United States.
Answers
Siemens' earnings were able to increase so much faster than their revenue due to the fixed costs that were reduced over the year, and as a result, they were able to produce a higher level of earnings.
With the reduction in fixed costs, Siemens was able to cut back on expenses and streamline their business practices, leading to a faster growth in earnings. If their revenue would have fallen by 9.4 percent, Siemens would have been negatively impacted.
With the reduction in revenue, Siemens would have experienced a significant decrease in earnings, which would have hurt the company's profits. The company would have had to cut back on expenses in order to maintain its bottom line, which would have impacted the business's operations and growth moving forward. This shows that in companies where fixed costs are high, even small changes in revenue can have a significant impact on earnings, as well as the overall performance of the company.
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