the franlkin corpoation is expexted to pay a dividend of 1.01 per share at the end of the year the stock sells for 64.39 per shar required rate return is 7.75% what is the equiliburm growth rate

Answers

Answer 1

Answer:

The equilibrium growth rate is 6.18%.

Explanation:

This is calculated by using the Gordon growth model (GGM) formula which is based on the assumption that dividend growth rate will be stable year after year forever. The formula is as follows:

P = d / (r - g) ……………………………………… (1)

Where;

P = current share price = 64.39

d = expected dividend = 1.01

r = required return = 7.75%, or 0.0775

g = equilibrium growth rate = ?

Substituting the values into equation (1) and solve for g, we have:

64.39 = 1.01 / (0.0775 - g)

64.39(0.0775 - g) = 1.01

4.990225 - 64.39g = 1.01

4.990225 - 1.01 = 64.39g

3.980225 = 64.39g

g = 3.980225 / 64.39

g = 0.0618143345239944, or 6.18143345239944%

Rounding to 2 decimal places, we have:

g = 6.18%

Therefore, the equilibrium growth rate is 6.18%.


Related Questions

Government patent regulations specify that investors will maintain exclusive legal rights for how long

Answers

Answer:

A limited time

Explanation:

The cost that varies depending on the values of the decision variables is a: ____________

a. dual cost.
b. sunk cost.
c. relevant cost.
d. reduced cost.

Answers

Answer:

The cost that varies depending on the values of the decision variables is a: ____________

c. relevant cost.

Explanation:

The relevant cost affects a decision outcome.  It is not like the sunk cost, which is fixed in total, no matter the decision being made.  A relevant cost is also known as a differential or incremental cost, because it makes a different under some decision alternatives.  Relevant costs are important to consider whenever a business entity is making a buy or make decision.  Relevant costs have their unit costs fixed while the total costs vary according to the alternatives.

What other factors, aside from cost, affect our personal purchase choices?


a) Other people's opinions of us
b) Our individual personality
c) Popular trends
d) All of these

Answers

Answer:

d

Explanation:

A decline in U.S. wealth would tend to cause: _____________

a. long-run aggregate supply to increase.
b. aggregate demand to increase.
c. short-run aggregate supply to increase.
d. long-run aggregate supply to decrease.
e. aggregate demand to decrease.

Answers

Answer: e. aggregate demand to decrease

Explanation:

A decline in U.S. wealth would tend to cause aggregate demand to decrease. Demand is defined as the amount of goods and services that one can buy at a certain price and at a given time.

When an economy is made up of wealthy individuals, the aggregate demand for that economy tends to increase due to the fact that such individuals have the purchasing power and hence can afford to buy whatever they want.

When there's a reduction in wealth, this will result into a reduction in aggregate demand as the people won't have much fund to make purchases like before.

The Susan Hansen Group in St. George, Utah, sells $16,000,000 of single-family homes and townhomes a year. If single-family homes, with an average selling price of $250,000, sell 3.5 times more often than townhomes, with an average selling price of $190,000, how many of each are sold?

Answers

Answer:

52.605 family homes are sold

Explanation:

Let townhomes be x. The selling price is x(190,000). Family home has 3.5, more often than townhomes is 3.5x. The selling price is 3.5x(250,000). A year of single family homes and townhome are sells 16,000,000

3.5x(250,000) =x(190,000) = 16,000,000

875,000x + 190,000x = 16,000,000

1,065,000x = 16,000,000

x = 16,000,000 / 1,065,000

x = 15.03

So, 15.03 townhomes are sold

Hence, the family homes is 3.5x

3.5x = 3.5(15.03)

= 52.605

Therefore, 52.605 family homes are sold

Which is NOT a type of written communication used in the business world?

A. Letters and emails
B. Brochures and advertisements
C. PowerPoints and memos
D. All of the above ARE used in the business world
I'll mark Brainliest

Answers

Answer:

D) All of the above

Explanation:

This because, Letters and emails are written ways to communicate with co-workers, friends, & family, brochures and advertisements are ways to communicate your idea or business production to other people to see and buy, powerpoints are ways to show a visual of what your product is and present it in a professional manner., and memos are written messages to help you remember something that's you would later present or use during business.

What action would you recommend Silvio take with respect to the transfer pricing and sourcing problems with European plants?

Answers

Answer:

It is imperative to note that since the european plants cost of processing are getting higher with time , it could be given to other companies who could process it at a lower cost.

Silvio then needs to to get their cooperation and go with his team members to conduct a one-on-one negotiation to speed up the process and ensure more experience for members of his team.

On January 1, Sustainable Energy Corporation issues bonds that have a $100,000 par value, mature in 8 years, and pay 12% interest per year. Interest payments are paid to bondholders semiannually on June 30 and December 31. How much interest does Sustainable Energy Corporation pay to bondholders every six months if the bonds are sold at par?

a. $1,200
b. $3,000
c. $6,000
d. $12,000
e. $100,000

Answers

Answer:

c. $6,000

Explanation:

The semiannual interest payable to bondholders every six months is computed using the semiannual coupon payment formula below:

semiannual coupon payment=face value*coupon rate*6/12

face value of the bonds=$100,000

coupon rate=12%

6/12 symbolizes a six-month payment

semiannual coupon payment=$100,000*12%*6/12

semiannual coupon payment=$100,000*6%

semiannual coupon payment=$6,000

The $6,000 would be every 30 June and 31 December for 8 years during the bonds' life

talk about your experience as a leader of a team at school?

Answers

It was very good I lead them army of students at a football team

Answer:

ehhh its pretty lame ngl

Explanation:

but its also fun lol

Say the reserve requirement is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan:_______

a. adds $10,000 in bank reserves.
b. eliminates $2,000 in bank reserves.
c. eliminates $10,000 in bank reserves.
d. adds S2,000 in bank reserves.

Answers

Answer:

a. adds $10,000 in bank reserves.

Explanation:

Given that

Reserve requirement is 20%

Now if you want to pay back the loan of $10,000 so here the act of paying back the loan is that the amount of loan i.e. $10,00 would get added to the bank reserves

Therefore as per the given situation, the option a is correct

And, the same is to be considered

Thus, all the other options are incorrect

Mapping the network of primary trading partners is something that should be done to: _________

a. Review and establish supply chain strategies
b. Obtain point-of-sale information from customers
c. Help the firm decide which businesses to include in its supply chain management efforts
d. Assess and improve internal integration of key supply chain processes

Answers

Answer:

Option c: Help the firm decide which businesses to include in its supply chain management efforts

Explanation:

Mapping the network of primary trading partners helps us to dentify critical supply chain trading partners.

Mapping according to this question is the representation of the plan, it features and sometimes drawn. It gives one a broad understanding about the work/project at hand.

A machine which cost $400,000 is acquired on January 1, 2017. Its estimated salvage value is $100,000 and its expected life is five years.

Required:
Calculate depreciation expense and complete the following schedules for 2017 and 2018 for each of the following methods.

A. Straight Line Depreciation
B. Sum of the Years Digits

Answers

Answer and Explanation:

The computation of the depreciation expense for 2017 and 2018 under the following methods

a. Straight-line method

= (Purchase cost - residual value) ÷ (estimated life)

= ($400,000 - $100,000) ÷ (5 years)

= $60,000

Since the depreciation expense under this method would remain the same for the remaining useful life

So for 2017 and 2018, the depreciation expense i.e. $60,000 would be charged every year.

b. Under the sum-of-the-year-digits method

For 2017,

= ($400,000 - $100,000) × 5 years ÷ ( 5 + 4 + 3 + 2 + 1)

= $300,000 × 5 years ÷ 15 years

= $100,000

For 2018, the book value is

= $400,000 - $100,000

The $100,000 is the depreciation expense of 2017 year

= $300,000 × 4 ÷ 15

= $80,000

On July 1, 2008, Blitzer Inc. signed a one-year, 6% interest-bearing note payable for $5,000. Blitzer Inc. has a December 31 yearend. The amount of interest expense that should be reported in the 2008 income statement for this note (rounded to the nearest dollar) would be

Answers

Answer:

interest expense = $150

Explanation:

the journal entry to record accrued interest:

December 31, 2018, accrued interest from note payable

Dr Interest expense 150

    Cr Interest payable 150

interest expense = principal x interest rate x time = $5,000 x 6% x 6/12 = $150

A bank issues 200 pesos, against which it holds assets of $40 cash, plus bonds worth 60 pesos. On backing theory principles, how many pesos will it take to buy $1?

Answers

Answer:

3.5

Explanation:

Calculation for how many pesos will it take to buy $1

Using this formula

Number of Pesos=Pesos issued by bank-Bond/Asset

Let plug in the formula

Number of Pesos=200 -60 /$40

Number of Pesos=140/40

Number of Pesos=3.5

Therefore the number of pesos it will take to buy $1 will be 3.5

An employer will do a 50% match on your investment to a 401k retirement plan. If you decide to contribute a monthly amount of $220, how much should be in the account after 15 years

Answers

Answer:

There will be $92,635.42 in the account after 15 years.

Explanation:

Missing question "The interest rate is fixed at 2.05%"

As the employer does a 50% match on the employee’s investment, the monthly contribution to the retirement plan will be = 2 * $220 = $ 440.

The future value (F) of an annuity is given by F = (P/r)[(1+r)n-1]

P is the periodic payment

r is the rate per period

n is the number of periods.

P = 440, r = 2.05/1200 and n = 15*12 = 180.

F = (440*1200/2.05)[ (1+2.05/1200)180 -1]

F = (528000/2.05)*0.359664042

F = 92635.4215493

F = $92635.42

Thus, there will be $92,635.42 in the account after 15 years.

If the inflation rate is positive power is ?. This situation is reflected in the ? Rate of return on an investment, which will be ? The ? Rate of return

Answers

Answer:

If inflation rate is positive, purchasing power of money decreases thus the rate of returns on investment decreases.

Explanation:

Crane Company sells 50000 units for $10 a unit. Fixed costs are $350000 and net income is $100000. What should be reported as variable expenses in the CVP income statement?

Answers

Answer:

Variable expenses = $50,000

Explanation:

Given:

Sales price = 50,000 x $10 = $500,000

Fixed costs = $350,000

Net income = $100,000

Find:

Variable expenses

Computation:

Variable expenses = Sales price - Fixed costs - Net income

Variable expenses = $500,000 - $350,000 - $100,000

Variable expenses = $50,000

Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.

Answers

Answer:

The long and short-term consequences of not promoting equality or working to reduce poverty are:

1. the poverty gap widens, causing many more of the population to become poor while a few become richer.

2. extreme poverty becomes the norm, thereby hampering societal progress.

3. discrimination and social classes become oppressive.

Explanation:

Economic equality describes a situation that ensures that every individual in a society has an equal economic opportunity to make the most of their lives and talents by having some access to resources.  Equality reduces discrimination among certain groups of the population, especially those with protected characteristics such as race, disability, sex, and sexual orientation.  It ensures the fair distribution of natural resources among the population, according to their individual needs and capacity.  It does not mean sameness in social or economic status.

The following are the long and short-term implications of failing to promote equality or act to alleviate poverty:

1. The wealth disparity increases, forcing many more people to fall into poverty while a few get wealthier.

2. Extreme poverty has now become the norm, stifling societal advancement.

3. Social stratification and inequality become oppressive.

Learn more:

https://brainly.com/question/10031848?referrer=searchResults

Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)

Answers

Answer: $2,398.55

Explanation:

The deposit at the end of year one would have been compounded by 2 years at the end of year 3. The second year deposit would have compounded by 1 year and the third year deposit would not have compounded at all.

The future value at the end of 3 years is;

= (500 * ( 1 + 11%)²) + (750 * ( 1 + 11%)) + 950

= $2,398.55

The question might not be the exact same but you can use this as a reference.

When an oligopoly market reaches a Nash equilibrium:_______

a. a firm will have chosen its best strategy, given the strategies chosen by other firms in the market.
b. the firms will not have behaved as profit maximizers.
c. a firm will not take into account the strategies of competing firms.
d. the market price will be different for each firm

Answers

Answer:

Option A: A firm will have chosen its best strategy, given the strategies chosen by other firms in the market.

Explanation:

Oligopoly Market os simply a type of Markets with only a few sellers, each offering a product similar or identical to the others. if and when, how oligopolists do not have the opportunity to collude, once they have reached the Nash equilibrium, it it is always in their best interest to leave their quantities supplied unchanged.

​Oligopolists are always best off, in terms of their profits brings about a total quantity of output that falls short of the Nash-equilibrium total quantity.

When an oligopoly market reaches a Nash equilibrium: A firm will have chosen its best strategy, given the strategies chosen by other firms in the market. Thus, option A is the correct option.

In a Nash equilibrium, each firm in the oligopoly has selected its optimal strategy, considering the strategies chosen by other firms. At this point, no firm can unilaterally deviate from its chosen strategy and improve its position.

Each firm is maximizing its own profit based on the actions of its competitors. This equilibrium is reached when all firms in the oligopoly have made their strategic decisions, and there is no incentive for any firm to change its strategy unilaterally.

Therefore, option A accurately describes the situation in a Nash equilibrium.

Learn more about oligopoly here:

https://brainly.com/question/33554231

#SPJ6

Behavioral economists contend that the traditional economic framework always accurately depicts human behavior. a. True b. False

Answers

Answer:

False

Explanation:

In simple words, Behavioral economics assume they have defined human actions as logical, constant self, and logically consistent which is inconsistent with the paradigm of individuals as mentioned in theories of traditional economics. Thus, from the above we can conclude that the given statement is incorrect.

In the context of managing inventories in supply chains,__________is the time between placement of an order and its receipt.

a. The lead time
b. A time series
c. The changeover time
d. A time horizon

Answers

Answer:

a. The lead time

Explanation:

The lead time is the time that shows the difference between the time at which the process gets started and the time at which the process get  finished. This can be reviewed in the manufacturing, supply chain management at the time when there is a prior processing, within processing and after processing

Therefore according to the given situation, the option a is correct

hence, all the other options are incorrect

=

1. Consider an economy with a population of 100,000 households. 60 percent of households reportan annual income of $25,000 ("low earners"), 30 percent of households report an annual incomeof $70,000 ("mid earners"), and 10 percent report an annual income of $110,000 ("high earners").(a)[2 pts]What is the total income earned by households in this economy?

Answers

Answer:

The total income earned by households in this economy is:

$4,700,000,000

Explanation:

a) Data and Calculations:

Household population = 100,000

Low earners = 60% with annual income of $25,000 each

Mid earners = 30% with annual income of $70,000 each

High earners = 10% with annual income of $110,000 each

60% of the population = 60,000 (100,000 * 60%) households

30% of the population = 30,000 (100,000 * 30%)  households

10% of the population = 10,000 (100,000 * 10%)  households

Total income earned by the households:

Low earners = 60,000 * $25,000 =      $1,500,000,000

Mid earners = 30,000 * $70,000 =         2,100,000,000

High earners = 10,000 * $110,000 =        1,100,000,000

Total income earned in the economy $4,700,000,000

Select the correct answer.
How can a business save on premium paid to insurance companies while also mitigating risk effectively?
A.
by covering all the risks that a business could face
B.
by having a higher deductible
C.
by choosing an unlicensed insurance agent
D.
by making sure no employees take risks in the business

Answers

Answer:

the answer is b

Explanation:

Suppose a popular band decides to hold a free concert in its hometown. Admission is available on a first-come, first-served basis. This concert is an example of: multiple choice an artificially scarce good. a public good. a common resource. a private good.

Answers

Answer:

None but a rival goods.

Explanation:

Public goods means a product that cannot reduce the consumption of one person due to the consumption of other person. Providing a free concert is necessarily excludable because it is possible to charge entrance. Only a limited person can attend the concert, so it is a rival goods. The free concert is not a public goods none common resources and private goods

Several alternatives are under consideration to enhance security at a county jail. Since the alternatives serve different areas of the facility, all that are economically attractive will be implemented. Determine which one(s) should be selected, based on a B/C analysis using an interest rate of 7% per year and a 10-year study period.

Extra Cameras (EC) New Sensors(NS) Steel Tubing (ST) Access Control (NS)
First Cost, $ 38,000 87,000 99,000 61,000
M & O, $/year 49,000 64,000 42,000 38,000
Benifits $/ year 110,000 160,000 74,000 52,000
Disbenefits, $/year 26,000 21,000 32,000 14,000

Answers

Answer:

The only two projects that actually yield a positive benefit are extra cameras (EC) and new sensors (NS). Since you have to decide based on which project yields the highest return, then you should choose extra cameras (EC) since its IRR is 92% which is the highest.

Explanation:

we have to determine the NPV of each project:

Extra cameras:

initial outlay = -$38,000

net benefit per year (for the 10 year period) = $110,000 - $26,000 - $49,000 = $35,000

NPV = $207,825

IRR = 92%

New sensors:

initial outlay = -$87,000

net benefit per year (for the 10 year period) = $160,000 - $21,000 - $64,000 = $75,000

NPV = $439,768

IRR = 86%

Steel tubing:

initial outlay = -$99,000

net benefit per year (for the 10 year period) = $74,000 - $32,000 - $42,000 = $0

NPV = -$99,000

Access controls:

initial outlay = -$61,000

net benefit per year (for the 10 year period) = $52,000 - $14,000 - $38,000 = $0

NPV = -$61,000

Under the liquidity premium theory the shape of the yield curve depends on:_________

a. the relative return of investments in common stocks versus investments in corporate bonds.
b. the size of the federal government's budget deficit.
c. government tax treatment of long-term versus short-term bonds.
d. the expected pattern of future short-term rates and the size of the term premium at each maturity.

Answers

Answer:

Option d: The expected pattern of future short-term rates and the size of the term premium at each maturity

Explanation:

Liquidity premium theory is simply said to be a form of or the interest rate on a long-term bond that will equal an average of short-term interest rates expected to be in existence/ Occurrence in the overall the life of the long-term bond plus a liquidity premium that answers(responsed) to supply and demand conditions for that bond.

Term structure is regarded or said to be the relationship between interest rates and the yeild to maturity, where risk of default is held constant.

Expenses and losses that are added back to net income because they do not actually use cash of the the company.

Answers

Answer and Explanation:

As we know that the expenses and losses contains the normal debit balance. At the time when they added back to the net income as they do not use the company cash so it would be shown in the non-cash charges or expenses as it is a non-cash expense because of not using the company cash

Therefore the same is to be considered

WGU manufacturing receives an order for 2000 laptops. Karl, the production planner, realizes the company has no planned orders and has 1500 laptops on-hand. However, Karl has to keep a minimum of 1000 laptops on-hand at all times. Based on this information, what will the MPS reflect for the number of laptops to be produced?

Answers

Answer:

500

Explanation:

The computation of the MPS reflect for the number of laptops to be produced is shown below:

since it is mentioned in the question that there is a minimum of 1,000 laptop is on hand so here 500 should from inventory.

Therefore 500 should be produced for filling the order

Hence, the same is to be considered

Therefore the  number of laptops to be produced is 500

A project has an initial cost of $2,400. The cash inflows are $0, $1,600, $1,100, and $700 over the next four years, respectively. What is the payback period?

Answers

Answer:

It will take 2.73 years to cover the initial investment.

Explanation:

The payback period is the time required to cover the initial investment:

Year 1= 0 - 2,400= -2,400

Year 2= 1,600 - 2,400= -800

Year 3= 1,100 - 800= $300

To be more accurate:

(800/1,100)= 0.73

It will take 2.73 years to cover the initial investment.

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