A stock's beta measures the (C) sensitivity of the stock's returns to those of the market portfolio.
The correct option is (c).
A portfolio is a group of economic investments like stocks, bonds, commodities, cash, and coins equivalents, including closed-stop finances and trade traded budget (ETFs). humans commonly trust that stocks, bonds, and coins include the core of a portfolio.
Portfolios maintain all and any shape of investment assets. economic experts often talk about a portfolio of shares and bonds, but lots of humans construct portfolios to put money into gold, actual estate or cryptocurrencies, among other asset classes.
A portfolio is a compilation of substances that exemplifies your ideals, competencies, qualifications, training, schooling and reviews. It provides perception into your persona and work ethic.
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a budget is most likely to be effective if it is not used to evaluate a manager's performance. it has top management support
A budget is most effective when it is seen as a tool to help a manager plan and manage their resources more efficiently and effectively. It should not be used as a way to evaluate the performance of a manager.
Effective Budgeting: Utilizing Resources with Top Management SupportTop management support is essential in order for a budget to be successful, as it provides a sense of ownership and accountability, and encourages managers to stay within their allotted resources.
In order for a budget to be effective, top management must provide their support and approval. This helps to ensure that managers are given the resources to plan and manage their departments in the most efficient way possible. Additionally, budgets should not be used as a way to evaluate the performance of managers, as this is counter-productive.
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a battery manufacturer warrants its automobile batteries to perform satisfactorily for as long as the owner keeps the car. auto industry data show that only 20% of car buyers retain their cars for 3 years or more. historical data suggests. Owned Probability of Battery Failure Battery Exchange Costs % Failed Batteries Returned Less than 3 3 or more 0.2 0.6 $50 $20 75% 50% If 50,000 batteries were sold this year, what is the estimated warranty cost?
Previous question
Warranty rate is the cost associated with a defective product repair, replacement, or refund. A guarantee comes with a assurance period at some stage in which the supplier or manufacturer of the good is responsible for any defects that may also show up at some stage in the use of the product.
How do you calculate estimated guarantee payable?To calculate the warranty expense, first determine out how many products will want repair or replacement:
Total variety of devices sold X Percentage of gadgets that are defective. Units wanting repair or replacement X cost per unit to repair or replace. 14 water bottles x $4 per water bottle = $56 cost of inventory.
Is warranties Payable an estimated liability?Warranties payable. Warranty legal responsibility is an example of an estimated liability. It is an estimated legal responsibility due to the fact it arises from the estimates of the business entity that there may be merchandise that were out in the market that have defects.
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https://brainly.com/question/15415456#SPJ4when taking into account cultural differences, sidney gray used the dimension to measure the degree to which companies disclose information to the public.
Sidney Gray utilized the secrecy-transparency dimension to assess how much information businesses release to the public while accounting for cultural variations.
Transparency denotes honesty, openness, and responsibility. In businesses, organizations, governments, and communities, transparency is practiced. For instance, in a commercial connection, a transparent agent clarifies prices upfront so there are no unforeseen costs afterward.
Being open and honest is not a weakness, but rather a strength. Companies will be able to get new perspectives, new thoughts, and improved understanding through exchanging ideas and information. If you can learn to be open and honest, problems will be resolved more quickly and effectively.
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hampton company reports the following information for its recent calendar year. income statement data selected year-end balance sheet data sales$ 160,000accounts receivable increase$ 10,000 expenses: inventory decrease16,000 cost of goods sold100,000salaries payable increase1,000 salaries expense24,000 depreciation expense12,000 net income$ 24,000
Required: Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Net income Depreciation expense Inventory decrease Salaries payable increase Accounts receivable increase Net cash provided by operating activities 0
Salaries payable increased by $1,000, inventory decreased by $6,000, depreciation cost was $12,000, and accrued interest was increased by (10,000) dollars. Cash flow from operating activities is negative and totals $43,000.
The following is how Hampton Company prepared its statement of cash flows' operating activities using the indirect method:
Operating Expenses and Cash Flow
$24,000 in profit
Non-cash item adjustments:
A $12,000 depreciation cost
Compensation for Variations in Working Capital
An increase in the amount of receivables ($10,000)
$16,000 less in inventory
An increase in the amount of salary that is payable $1,000
$43,000 in Net Operating Cash
Sales are computed as sales less cost of goods sold, selling, general and administrative costs, operating costs, depreciation, interest, taxes, and other costs. Net income (NI), often known as net earnings, is the difference between these two figures. Investors might use this figure to gauge the extent to which an organization's revenue outpaces its costs. This figure can be found on an organization's income statement and serves as a gauge of profitability.
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jason incorporated maintains a qualified profit-sharing plan for its employees. this year, jason contributed $2,300 to preston's profit-sharing account. which of the following statements is true? multiple choice jason cannot deduct the contribution, and preston does not include the contribution in gross income. jason cannot deduct the contribution, but preston must include the contribution in gross income. jason can deduct the contribution, but preston does not include the contribution in gross income. jason can deduct the contribution, and preston must include the contribution in gross income.
The following statement "Jason can deduct the contribution, but Ms. Preston does not include the contribution in her gross income" is true.
Income, which is often stated in monetary terms, is the spending and saving opportunity acquired by an entity within a given duration. Conceptually, income is hard to define, and various disciplines may have distinct definitions. Haig-Simons income, which defines income as Consumption + Change in Net Worth and is commonly applied in economics, is a very significant definition of income.
Income is a total that includes any wages, salaries, profits, interest payments, rent, or other forms of earnings earned in a calendar year for families and individuals in the United States, as defined by tax law. Gross income for a business is the total revenue less the cost of items sold.
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Which of the following items should be included in Melay, Inc.’s summary of significant accounting policies for the current year? A.Operating segment sales for the current year are Alay $1M, Belay $2M, and Celay $3M. B.Future common share dividends are expected to approximate 60% of earnings. C.Property, plant, and equipment is recorded at cost with depreciation computed principally by the straight-line method. D.During the current year, the Delay Segment was sold.
Depreciation is a term used in accounting to describe two different aspects of the same idea: first, the actual decline in fair value of an asset, such as the annual decline in value of factory equipment
due to use and wear, and second, the allocation in accounting statements of the asset's initial cost to the periods in which it is used (depreciation with the matching principle). Depreciation is the process of reallocating, or "writing down," the cost of a tangible item (such as equipment) over the course of that asset's useful life. It also refers to the decline in asset value. Long-term assets are depreciated by businesses for accounting and tax reasons. The balance sheet of a company is impacted by the asset's decline in value.
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assume that the united states government introduces an expansionary monetary policy, increasing the money supply in the market. in the accompanying graph, demonstrate the long run effect on aggregate demand and short run aggregate supply. then, answer the following question. aggregate price level real gdp lras sras ad in the classical model of the price level, what is the long run effect of an increase in the money supply on real gdp?
It has no impact on GDP. The SRAS and AD lines are both left-directed.
The phrase "gross domestic product" (GDP) refers to the market value of all final products and services produced and sold in a certain time period by countries (GDP). Due to the measurement's complexity and subjectivity, it must be repeatedly adjusted before it can be considered a reliable indication.
While nominal GDP is better for comparing national economies on the international market, GDP per capita at purchasing power parity may be more beneficial for comparing living standards between nations. However, variations in the cost of living and inflation rates of the nations are not reflected in GDP (nominal) per capita. It is also possible to quantify the contribution of each industry or sector to the overall GDP.
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capital asset planning (cap) is an investment adviser registered in states a, b, and c. cap has no place of business in state d. the registration prov
Accredited investors are those who have demonstrated their ability to make financial decisions based on objective criteria. The goal of capital asset management planning is to forecast future capital requirements and create plans and initiatives to meet those demands.
If an investment adviser's only clients are other investment advisers, broker-dealers, and institutional clients, then the adviser does not need to register in the state even if he does not have a physical presence there.
Accredited investors can be either large institutions or retail (individual) investors who meet specified financial requirements; either can qualify for the exemption unless the choice explicitly excludes institutions. Because of the nature of the inquiry, the exemption does not apply.
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The right question is:
Capital Asset Planning (CAP) is an investment adviser registered in states A, B, and C. CAP has no place of business in state D. The registration provisions of the Uniform Securities Act would not apply to CAP in state D if it confined their advisory business in state D to all of these EXCEPT
other investment advisersbroker-dealersindividuals qualifying as accredited investorssavings and loan associationswhich of the following is a set of clear, consistent, and specific attributes or characteristics that define your company in the consumers mind?
Image is a set of clear, consistent, and specific attributes or characteristics that define our company in the consumers mind.
who is a consumer?Any individual or group who uses a good or service for the last time is referred to be a consumer. Here are some illustrations: a someone who pays a hairstylist to cut & style their hair. corporation that purchases a printer for business purposes.
Why is it referred to as a consumer?A person is referred to as a consumer if they buy goods or services for their own use rather than for manufacturing or resale. A customer is someone who makes the choice of whether or not purchase a product there at store or a person who is influenced through marketing and advertising.
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walter builds birdhouses. he spends $5 on the materials for each birdhouse. he can build one in 30 minutes. he is semi-retired but earns $8 per hour at the local hardware store. he can sell a birdhouse for $20 each. refer to scenario 13-11. an economist would calculate the total cost for one birdhouse to be a. $13. b. $5. c. $9. d. $8.
An economist would calculate the total cost for one birdhouse to be $9.
The economic expert is a British weekly newspaper printed in demitab format Associate in Nursingd published digitally. It focuses on current affairs, international business, politics, technology, and culture. primarily based in London, the newspaper is closely held by The Economist Group, with its core editorial offices within the United States, furthermore as across major cities in continental Europe, Asia, and the Middle East. In 2019, its average world print circulation was over 909,476; this, combined with its digital presence, runs to over 1.6 million. Across its social media platforms, it reaches an audience of thirty-five million, as of 2016. The newspaper encompasses a distinguished focus on data journalism and informative analysis over original reporting, to each criticism and acclaim.
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one of the advantages of formal planning is group of answer choices does not become burdened by setting forth the resources required to complete the plan it precedes and ties together the other management functions of organizing, leading, and controlling the smaller the organization, the more time will be spent in a formalized planning process once written, assumptions are not difficult to change
One of the advantages of formal planning is that more time will be spent in a formalized planning process once written, assumptions are not difficult to change.
Formal planning tends to increase the likelihood of long-term survival of an organization. So, it can be said that planning shall provide a sense of vison, direction, rationale and purpose for the plan.
Such which can be easily communicated to other members of the organization, showing them that how serious it is about reaching these organizational goals. Thus, such assumptions are not difficult to change.
Hence, the formal strategic planning calls for an explicit process.
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which of the following requires that pension rights be vested and protected by the pension benefits guarantee corporation?
The Pension Benefits Guarantee Corporation must vest and preserve pension rights in accordance with the Employee Retirement Income Security Act.
The ERISA protects employees in what ways?The interests of participants in employee benefit plans and their beneficiaries are protected by ERISA. Participants must be informed of the plan's specifics by plan sponsors, according to this requirement. It outlines the standards of conduct for fiduciaries, including plan administrators.
The Employee Retirement Income Security Act of 1974 (ERISA), a federal legislation, establishes minimal standards for the majority of voluntarily established retirement and health plans in the private sector in order to safeguard the participants in these plans.
The PBGC, an agency of the government, is required to preserve and vest pension rights under ERISA, which President Ford signed into law in 1974. Employers are required to comply with certain regulations and maintain formal pension plan documents.
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The difference between digital advertising and organic marketing on social media platforms is that digital advertising is _____ and organic marketing is _____. Select all that apply.Paid; not paid. For E-commerce only; for all businesses.More targeted; less targeted. Unhelpful; helpful.
The difference between digital advertising and organic marketing on social media platforms is that digital advertising is a)c) paid/more targeted and organic marketing is not paid/less targeted.
In the field of business, digital advertising is a method of advertising in which paid techniques are used in order to generate more audience for the advertisement. It is believed that the more no.of people who watch the advertisement, the more will be the chances of the sales of the product. Hence, digital advertising is more targeted and paid for a targeted audience.
On the other hand, organic marketing is used to generate traffic on the website of a business without using any paid measures. As a result, there is a lesser targeted audience for organic marketing.
The question will correctly be written as:
The difference between digital advertising and organic marketing on social media platforms is that digital advertising is _____ and organic marketing is _____.
Select all that apply.
a) Paid; not paid.
b) For E-commerce only; for all businesses.
c) More targeted; less targeted.
d) Unhelpful; helpful.
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[The following information applies to the questions displayed below.] On July 15, 2021, the Nixon Car Company purchased 2,400 tires from the Harwell Company for $35 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the gross method of accounting for purchase discounts. Required: 1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2021. 2. Prepare the journal entry for the payment, assuming instead that it was made on August 15, 2021. July 15, 2021 Record purchase of tires July 23, 2021 Record payment of July 15 purchase Required 2 August 15, 2021 Record payment of July 15 Purchase
[The following information applies to the questions displayed below.]
On July 15, 2021, the Nixon Car Company purchased 2,400 tires from the Harwell Company for $35 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the gross method of accounting for purchase discounts.
3. If Nixon instead uses a periodic inventory system, explain any changes to the journal entries created in requirements 1 and 2.
The July 15 entry would include a debit to the _____________
entry would include a credit to the ____________________.
If Nixon uses a periodic inventory system, the July 15 entry would include a debit to the Purchases account and a credit to the Accounts Payable account.
The entry on July 23 would include a debit to Accounts Payable and a credit to Cash for the amount paid. The entry on August 15 would include a debit to Accounts Payable and a credit to Cash for the amount still owed plus interest.
A periodic inventory system is an inventory management system in which a physical count of stock is taken at regular intervals, such as once a month or once a quarter. The physical count is compared to the inventory records to determine the quantity of stock on hand. This system is used to identify discrepancies in inventory records and to update the records with the actual amount of stock on hand.
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benjamin has recently received a large estate settlement, and he is eager to use the money toward the purchase of a successful business that is already in operation. which of the following should be discouraged as a source for finding businesses for sale?
Phonebook should be discouraged as a source for finding businesses for sale.
Is buying an existing company a wise move?There is less risk. Buying an established business is intrinsically less hazardous than establishing one from scratch because it already has goodwill, is operational, has clients and customers, personnel, systems, suppliers, financial history, a location or locations, and you might be able to convince the seller to finance it. When there is demand, go there. Look for markets where your goods or services are in high demand or where there is little to no competition. To make sure your company fits into the local market, you should, if at all possible, move your operations to a location where the other businesses on the block are complementary.
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if two nations have a trade dispute, the world trade organization may be asked to mediate and provide a decision within one year's time.
When one nation adopts a trade policy measure or does something else that one or more other WTO members believe violates WTO rules, a dispute results.
What do we mean organization?The organization is a group of people who cooperate, such as a firm, neighborhood association, charity, or union. This term "organization" can be used to describe a person, a group, a company, or the process of making and developing anything.
What is organization definition and example?The organization is a formal gathering of people, like a business, charity, political party, or club. Almost majority of these specialty schools are run by nonprofit institutions. ... the International Labor Organization report.
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TRUE/FALSE. vertical cmarketing chaneel green supply chain multiered marketing channelinstacart an online store that delivers its products to homes in and around
True, smart shoppers has most likely developed a B) green supply chain.
The operational management technique and optimization approach to lessen the environmental impact throughout the life cycle of the green product, from the raw material to the finished product, could be referred to as a green supply chain or sustainable network. A clever shopper can be identified using a few basic guidelines. A knowledgeable shopper acts "smartly" when buying purchases. People gather as much information as they can to make the best decision possible on the commodity or service they desire to purchase. Smart shopping campaigns automatically analyze data from enquiries, intent signals, basket size, and customer preferences on brands and products to discover trends that are related to online conversion value. Smart shopping campaigns are one of the marketing modalities that emphasize performance the most.
Note that the correct question is:
Smart Shoppers has most likely developed a(n) ________. Is it true/false?
A) vertical marketing channel
B) green supply chain
C) multitiered marketing channel
D) intermodal transportation system
E) hybrid distribution system
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One of the most common causes of a materials price variance is an unexpected change in
a. raw materials costs. b. machinery c. employee turnover. d. the manufacturing process.
One of the most common causes of a materials price variance is an unexpected change in raw materials costs (A).
Raw material is the basic material from which a product is made. Raw material costs can change unexpectedly which causes a material price variance. This material price variance happens when there is a difference between the actual price paid for materials in production and the standard price of the material. Of course this difference will not be favorable if the actual price paid is higher than the standard price. Various factors may contribute to this unexpected price change, including a price increase, transportation expenses, or the quality of materials.
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1. Historically, most startups
a. Pivot and iterate while continuing to search for a business model that works
b. Run out of money and shut down
c. Grow very slowly and barely break even
d. Grow into a successful company
Answer:
hjj
Explanation:
which of the following denotes a common weakness between the four firm concentration ratio and the hhi
The Herfindahl-Hirschman Index (HHI) is a common way to measure market concentration and market competitiveness, often before and after M&A transactions.
The index measures the degree of competitiveness as well as company size in relation to industry size. The HHI is calculated by summing the numbers from the quadrupling of each company's market share in a given market. It can be as low as 0 and high as 10,000, with lower values indicating a smaller market.
A widely accepted indicator of market concentration is the HHI. It is determined by squaring the piece of the pie of each firm contending in a market and afterward adding the subsequent numbers. It can be as low as 0 or as high as 10,000. The HHI is utilized by the U.S. Department of Justice to assess potential antitrust concerns related to mergers.
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Full Question = Which of the following denotes a weakness that is common to both the four firm concentration ratio and HHI?
alternative dispute resolution, with a specific focus of the law to the role of christian leadership in the workplace
Despite the fact that managing leadership conflict in a church is a dispute that frequently arises, little attention has been paid to this issue. The church's leadership, which is meant to set an example for other kinds of leadership in society, is likely to be undermined by such disagreement.
Any way of resolving conflicts without going to court is referred to as alternative dispute resolution (ADR). ADR brings together all methods and procedures for resolving disputes that take place independently of any governing body. Mediation, arbitration, conciliation, negotiation, and transaction are the most well-known ADR techniques.
Alternative dispute resolution is meant to improve communication between the parties, in addition to potentially eliminating the costs, delays, and uncertainty involved with traditional litigation. ADR offers a space for innovative dispute resolutions that better serve the interests of the parties.
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a firm is considering moving from the united states to mexico. the firm pays its u.s. workers $10.00 per hour. currently, u.s. workers have a marginal product of 25 units, whereas mexican workers have a marginal product of 2.5 units. in order for the firm to reduce its wage cost per unit of output by moving to mexico, the wages in mexico must be below $ per hour
From the question, we can see that the productivity in the United States is (45/9) = 5 times higher than that of Mexico.
How are employees in Mexico treated?Workers in Mexico are shielded against discrimination on the basis of age, gender, handicap, socioeconomic and marital status, race, national origin, sexual orientation, and religion. Protections are available before, during, and after employment.
What professions held immigrants from Mexico?The majority of the Southwest's businesses, including ranching and mining, are dominated by immigrants from Mexico and their offspring. For immigrants from Mexico, the expanding train system in America was particularly significant. Mexican immigrants were historically used by the railroad sector as a source of inexpensive labor.
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The comparative balance sheets for Windsor, Inc. show these changes in noncash current asset accounts: accounts receivable decreased$80,600, prepaid expenses increased$26,500, and inventories increased$42,000. Compute net cash provided by operating activities using the indirect method, assuming that net income is$205,500. (Show amounts that decrease cash flow with either a-sign eg,−15,000or in parenthesis eg.(15,000).
The net cash provided by operating activities using the indirect method assuming a net income is $140,400.
The net cash flow from the operating operations of a corporation shows whether any new money entered or left the company. The cash flow from these operations is a crucial metric to assess a company's financial performance. It represents revenue generated by an organization's ongoing commercial operations. It is shown as a corporation's first portion of the cash flow statement.
Calculating the adjusted income -
Adjusted net income = Net income + Decrease in accounts receivable - Prepaid Expenses
= 205,500 + (80,600) - 26,500
= 124,900 - 26,500
= 98,400
Calculating the net cash provided by operating activities:
Net cash provided by operating activities = Adjusted net income + Increase in inventories
= 98,400 + 42,000
= 140,400
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investors can benefit from investments in stock via increases in the market price of the stock or through the receipt of dividends. this statement is
domino's and little caesars are competing over the price of pizza. what is the dominant strategy? note: there will be a problem like this one the final.
The correct answer would be opting for the Dominant strategy in game theory by Domino and Little Caesar, where Each business charges $5.
The science of making strategic decisions in situations with several actors is known as game theory. Used by businesses, These can be genuine games or real-world events like combat, interpersonal exchanges, or managerial judgments.
Sometimes, regardless of how other players behave in business, the ideal strategy will remain the same. This is a dominant strategy.
The so-called Nash equilibrium in game theory, on the other hand, describes a mutual understanding rather than a specific plan in which one party is aware of the other's optimal approach and takes it into account when determining their own.
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Giordano Chocolates applies overhead using direct labor costs and had a total labor variance of $12,540 U in the month of March. Because of this, the manufacturing overhead variance will be
unaffected
Giordano Chocolates applies overhead using direct labor costs and had a total labor variance of $12,540 U in the month of March. Because of this, the manufacturing overhead variance will be unaffected.
Give a brief account on overheads.Costs associated with the day-to-day operation of the business are known as overheads. Contrary to operating costs, overheads cannot be linked to a particular cost unit or commercial activity. As opposed to that, they assist the company's overall revenue-generating operations.
For instance, a business that sells vehicles pays a higher rent for office space in a location with extra room for a showroom. One of the overhead expenses for the company is the premium rent. Whether or not a company's products are selling, it must continually cover its overhead expenditures.
Types :
Fixed overhead: Costs known as fixed overheads are expenses that don't vary based on variations in the volume of business activity each month.Variable overhead: Variable overheads are costs that fluctuate with business activity levels and might rise or fall with varying levels of activity. The costs will rise while business activity is high, but when business activity is low, the overheads will significantly decrease or even disappear.Semi-variable overhead: Semi-variable overheads have certain traits with fixed costs as well as variable costs. These expenses can be incurred by a company at any moment, albeit the precise cost will vary depending on the volume of commercial activity.To know more about, overhead, visit :
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definition sharpe ratio is used to measure the return of an investment to its risk. it is a mathematical expression that is a measure of the excess return (above the risk-free rate) earned in excess of what would have been earned on a risk vs reward investing investment during the same period. when employed for evaluating a portfolio, the ratio can be computed for any number of time periods. for example, the ratio may be computed from daily price data to evaluate performance over one year, or from monthly returns to monitor results over three years.
The return on an investment is compared to its risk using the Sharpe ratio. It is a mathematical statement of the idea that, rather than indicating an investor's skill level.
The Sharpe ratio, also known as the reward-to-variability ratio, was developed by economist William F. Sharpe as a byproduct of his work on the capital asset pricing model (CAPM) in 1966. In 1990, Sharpe's work on the CAPM earned him the economics Nobel Prize.
The difference over time between realised or predicted returns and a benchmark, such as the risk-free rate of return or the performance of a specific investment category, is the numerator of the Sharpe ratio. The same period's standard deviation of returns serves as its denominator.
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when you buy life insurance, you are making a contract with the company issuing the policy where you agree to pay a premium periodically and the company agrees to pay a death benefit.
When you get life insurance, you are entering into a legal agreement with the business providing the policy in which you commit to paying a premium on a recurring basis and the business commits to paying a death benefit.
A contract for life insurance is made between a person and an insurance provider company. Under exchange for a quantity of money known as the premium, the insurance company promises in this contract to pay a beneficiary a certain sum of money, subject to certain restrictions.
You should be aware that a life insurance policy is a legal contract, just like any other insurance policy. In other words, it is a contract between the parties that states what the insurance provider will do in return for the payment.
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recapitalization tartan industries currently has total capital equal to $4 million, has zero debt, is in the 25% federal-plus-state tax bracket, has a net income of $1 million, and distributes 40% of its earnings as dividends. net income is expected to grow at a constant rate of 3% per year, 200,000 shares of stock are outstanding, and the current wacc is 12.30%.
Part a. The current stock price is $16.99
Part b. The new stock price is $15.92.
A stock entitles investors to future residual earnings of a firm through the distribution of dividends. The price of a stock is therefore strongly tied to the expected future stream of dividends. The dividend growth model assumes dividend grows at a constant rate indefinitely and offers a simple expression for the stock price.
Part a.
We can use the dividend growth model to compute the stock price as follows:
stock price = current dividend per share *(1 + dividend growth rate) / (required return - dividend growth rate).
The current dividend per share = 1 million * 40% / 250,000 = 1.6.
Dividend growth rate = growth rate of net income = 3%,
the required return = WACC = 12.30% (because the firm is an all-equity firm). Applying the dividend growth model, the price of the stock = 1.6*(1 + 3%) / (12.30% - 3%) = 16.98
Part b.
Applying the Modigliani-Miller theorem
The value of the levered firm = value of unlevered firm + value of debt * tax rate = 4 million + 2 million * 40% = 4.8 million.
So the value of the equity after recapitalization = 4.8 - 2 = 2.8 million.
The number of shares outstanding = 250,000 - 2 million / 16.98 = 103062
So the value per share = 2.8 million / 175,898 = 27.16
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a sales agent has been focusing on property management while sponsored by another broker over the last seven years. the sales agent has just received his broker's license and immediately opens his own brokerage office. numerous license holders with whom he worked in the past approach him for sponsorship, indicating a desire to do residential and commercial sales. the new broker has little experience in either area. although the new broker is anxious to get started, he is particularly concerned about his limited experience in residential and commercial sales. the new broker
Considering that a licence holder has the authority to represent buyers, sellers, and intermediaries. At the brokerage firm, licenced brokers are responsible for supervising both licenced salespeople and unlicensed workers.
Brokers are in charge of overseeing all real estate paperwork, even if they have someone else prepare and store them for them. A signed listing contract usually establishes the agency relationship. The buyer's representative, also referred to as a buyer's agent, is employed by potential buyers and represents their best licence at all times during the transaction. When the broker should have known that a statement about a substantial fact was false, there has been a negligent misrepresentation.
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