Holtzman Clothiers' stock currently sells for $23 a share. It just paid a dividend of $2.25 a share (i.e., Do= $2.25). The dividend is expected to grow at a constant rate of 7% a year.a. What stock price is expected 1 year from now?b. What is the required rate of return?
Answers
a) Holtzman Clothiers' stock price is expected to be $80.33 a year from now.
b) The required rate of return for Holtzman Clothiers' stock is approximately 17.15%.
Calculate the expected stock price in one yeara. To calculate the expected stock price in one year, we can use the constant growth model:
P1 = D1 / (r - g)
where:
P1 is the expected stock price in one year
D1 is the expected dividend in one year (which we can find using the dividend growth rate)
r is the required rate of return
g is the dividend growth rate
We know that the dividend just paid was $2.25, and it's expected to grow at a constant rate of 7% per year. So the expected dividend in one year, D1, will be:
D1 = Do * (1 + g) = $2.25 * (1 + 0.07) = $2.41
Assuming the required rate of return is unchanged at r = 10%, we can calculate the expected stock price in one year:
P1 = $2.41 / (0.10 - 0.07) = $80.33
Therefore, Holtzman Clothiers' stock price is expected to be $80.33 a year from now.
Solve the required rate of return =, r?b. We can use the same constant growth model to solve for the required rate of return, r:
P0 = D0 * (1 + g) / (r - g)
where:
P0 is the current stock price
D0 is the current dividend
g is the dividend growth rate
Plugging in the given values:
$23 = $2.25 * (1 + 0.07) / (r - 0.07)
Solving for r:
r - 0.07 = $2.25 * (1 + 0.07) / $23
r - 0.07 = 0.1015
r = 0.1715
Therefore, the required rate of return for Holtzman Clothiers' stock is approximately 17.15%.
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a) Holtzman Clothiers' stock price is expected to be $80.33 a year from now.
b) The required rate of return for Holtzman Clothiers' stock is approximately 17.15%.
Calculate the expected stock price in one yeara. To calculate the expected stock price in one year, we can use the constant growth model:
P1 = D1 / (r - g)
where:
P1 is the expected stock price in one year
D1 is the expected dividend in one year (which we can find using the dividend growth rate)
r is the required rate of return
g is the dividend growth rate
We know that the dividend just paid was $2.25, and it's expected to grow at a constant rate of 7% per year. So the expected dividend in one year, D1, will be:
D1 = Do * (1 + g) = $2.25 * (1 + 0.07) = $2.41
Assuming the required rate of return is unchanged at r = 10%, we can calculate the expected stock price in one year:
P1 = $2.41 / (0.10 - 0.07) = $80.33
Therefore, Holtzman Clothiers' stock price is expected to be $80.33 a year from now.
Solve the required rate of return =, r?b. We can use the same constant growth model to solve for the required rate of return, r:
P0 = D0 * (1 + g) / (r - g)
where:
P0 is the current stock price
D0 is the current dividend
g is the dividend growth rate
Plugging in the given values:
$23 = $2.25 * (1 + 0.07) / (r - 0.07)
Solving for r:
r - 0.07 = $2.25 * (1 + 0.07) / $23
r - 0.07 = 0.1015
r = 0.1715
Therefore, the required rate of return for Holtzman Clothiers' stock is approximately 17.15%.
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Related Questions
pls help!!!!
answer the following questions using complete sentences. Each answer should contain 3–5 sentences.
What do you think is the most important event in the history of the internet? What event has had the biggest impact on your daily life?
What is your prediction for the future of the internet in the next 20 years?
Answers
1. one of the most important even i think would be in 2007 when apple created the very first mobile internet (this could also apply to you too)
2. what u think will happen in the next 20 years is that we are going to move away from mobile devices and towards maybe a chip in your head or a sort of device something similar to VR
a central bank that wants to increase the quantity of money in the economy will
Answers
If a central bank wanted to increase the amount of money in an economy, it would D. buy bonds in open market operations.
When the central bank buys bonds:
It increases money supply in the economy It does this by paying for the bonds such that money flows from the central bank into the economyBuying bonds is one of the strategies that a central bank can use when it embarks on an expansionary monetary policy to increase the amount of money in the economy and spur growth.
In conclusion, the central bank can buy bonds to increase money supply.
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6
A company that is located in the U.S. and sells its product to customers in Mexico is participating in what?
A. Demographics
B. News media
C. The global marketplace
D. Web marketing
Answers
Answer:
c
Explanation:
the global marketplace
Answer:
C
Explanation:
got it right on Edge
When the market is in equilibrium, the price that consumers pay and that producers receive exactly balances the:.
Answers
In an equilibrium market, the prices balance the marginal benefit and marginal cost of consuming and producing a good or service.
What is equilibrium?Equilibrium simply means when demand and supply are balanced.
When the market is in equilibrium, the price that consumers pay and that producers receive exactly balances the marginal benefit and marginal cost of consuming and producing a good or service.
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In Citation when you use the exact words from a source, you are ______________________.
Answers
Answer:
Quoting
Explanation:
or something along those lines
The three primary functions that exist in most business organizations are:
A) manufacturing, production, and operations B) operations, marketing, and finance C) operations, accounting, and marketing
D) operations, production, and finance E) none of the choices are correct
Answers
(Option B) Operations, marketing, and finance are the three primary functions that exist in most business organizations.
Operations refers to the production, delivery, and management of the organization's products or services. Marketing refers to the research, promotion, and sale of the organization's products or services.
Finance refers to the management of the organization's financial resources, including budgeting, accounting, and investment decisions. Manufacturing and production are specific aspects of operations, while accounting is a specific aspect of finance, but all three functions are essential components of a business organization's overall success.
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Explain how Naïve Bayes Model works effectively? Give Five (5)
points
Answers
Naïve Bayes Model is a probabilistic method that uses Bayes theorem. It is a classification method that is used for the classification of objects that have certain characteristics, it's simple to implement and generates accurate results, but it has a basic assumption that the attributes are independent of one another.
Here are five ways that Naïve Bayes Model works effectively:1. The model is easy to implement and is relatively straightforward to understand. It is also computationally less complex and has a high speed of training.2. The algorithm works effectively even when the data is skewed or when the data set is too large.3. Naïve Bayes is very effective in identifying spam or non-spam emails, making it very useful for email filtering.4. The model has a low probability of overfitting, even with complex datasets.5. The model is particularly useful in cases where there are multiple classes in the dataset and the variables are independent of each other.
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A life insurance policy written on one contract for two people in which it is payable upon the first death is called. A) Split B) Shared C) Joint
Answers
A life insurance policy written on one contract for two people in which it is payable upon the first death is called Joint life insurance.
This type of policy is often used by married couples or business partners to provide financial protection for the surviving individual. The policy is payable upon the first death, and the surviving individual receives the full death benefit. Therefore, the correct answer is option C) Joint.A life insurance policy written on one contract for two people in which it is payable upon the first death is called a joint life insurance policy. Under a joint life insurance policy, the death benefit is paid out when the first insured person dies, and the policy then terminates. This is in contrast to a "survivorship" or "second-to-die" life insurance policy, which pays out the death benefit after both insured persons have died. Joint life insurance policies can be a good option for couples who are looking to provide financial protection for their family or dependents in the event of one spouse's death, while potentially paying lower premiums than if they each had their own separate life insurance policies.Learn more about life insurance policy here:https://brainly.com/question/28873446
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Under the __________ ___________, each country set a number of units of its currency equal to an ounce of gold, and the ratios of these units of gold equivalence established the exchange rate between two currencies.
Answers
Under the gold standard, currencies were fixed to specific amounts of gold, providing stability in international trade, but it was later abandoned for flexible exchange rates and fiat currencies.
Under the gold standard, each country set a fixed exchange rate between its currency and a specific amount of gold. This meant that the value of a country's currency was directly tied to a set amount of gold.
The exchange rate between two currencies was determined by the ratio of their respective gold equivalences. This system provided stability and predictability in international trade as the value of currencies was linked to a tangible and relatively stable asset (gold).
However, the gold standard was gradually abandoned by most countries in the 20th century in favor of flexible exchange rates and fiat currencies.
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Learn about unanticipated inflation and understand how it occurs. Compare the advantages and disadvantages and see who benefits from unanticipated inflation.
Answers
Unanticipated inflation occurs when the general price level of goods and services increases more rapidly than expected by the public, producers, and the government.
About unanticipated inflationIt is inflation that is unexpected or unpredictable. Inflation is a situation in which the price level of goods and services in an economy continues to rise over time.
There are two types of inflation:
anticipated and unanticipated inflation.
It is hard to predict unanticipated inflation because it happens without warning. Anticipated inflation is when prices increase at a rate that is expected, allowing people to make the necessary adjustments in their financial planning.
Advantages of unanticipated inflation include the following:
Debtors profit as they repay their loans with money that has less purchasing power. Borrowers of fixed-interest-rate loans can benefit from unanticipated inflation because they will pay back their loans with dollars that are less valuable.
Employees can demand salary increases due to increased inflation rates. Producers are able to raise prices of goods and services to match the inflation rate, which raises profits. On the other hand, the disadvantages of unanticipated inflation include the following: There is an increase in uncertainty about the future of the economy.
An increase in uncertainty could lead to less investment and less borrowing. Those with fixed incomes, such as retirees, may see the value of their incomes decrease. The value of investments like bonds may decrease due to unanticipated inflation. In general, debtors, borrowers of fixed-interest-rate loans, producers, and employees benefit from unanticipated inflation.
Retirees and people with fixed incomes suffer because the value of their income decreases. Furthermore, bondholders who do not hold inflation-protected bonds suffer because the value of their investment decreases.
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Kacey grew up sailing and still loves it today. After securing a great job after graduation, he started saving for his own sailboat. He had his eye on one in particular and had saved about half what he needed when his company transferred him to Phoenix, which didn't have the same recreation options. Which of the following best describes Kacey?
a. Kacey is both in the market and the target market for the sailboat.
b. Kacey is not in the market for the sailboat yet.
c. Kacey was in the market for the sailboat prior to his move to Phoenix.
d. Kacey is in the market for this sailboat but not the target market
Answers
Answer:
b.
Explanation:
Based on the scenario at hand and the different options listed it can be said that the one that best describes Kacey is that Kacey is not in the market for the sailboat yet. That is because even though Kacey loves sailing, where she currently lives (Phoenix) does not have places to sail. Also, she does not even have the money to buy a sailboat yet and therefore is not in the market to buy one at the current moment in her life.
If u receive the funds for a takeaway what are your plans for the next 12 months.
Answers
Answer:
Pay it all off and save up money
Explanation:
Answer:
i would donate some of the money to a charity
Explanation:
Wreckorp wants to maintain an exclusivity image for its product line of sports equipment. It limits its distribution to 100 stores in each region.
Answers
Based on the fact that Wreckorp wants to maintain an exclusivity image and limits its distribution to 100 stores in each region, it is Impossible to determine legality based on the information provided.
Are Wreckorp's actions legal?It is not possible to know if Wreckorp's actions are legal or illegal because the information provided does not give the full facts.
The actions of Wreckorp may be legal if no region is being disadvantaged but it could be illegal if this is the case. More information is therefore needed.
Options for this question are:
Strictly illegal Impossible to determine legality based on the information provided Strictly LegalFind out more on the legality of business actions at https://brainly.com/question/4556120.
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Which of the following symptoms is NOT associated with an allergic reaction?
Trouble breathing
Anxiety
OOO
Fainting
Screaming
Answers
When one is having an allergic reaction to something, one symptom that is not expected is Screaming.
An allergic reaction usually leads to the following:
Person has trouble breathing Person develops anxiety Person might faintIt is not a usual thing that a person will scream as a result of an allergic reaction.
We can therefore conclude that screaming is not associated with allergic reactions.
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What does indigenous technology mean?
Answers
Answer: I hope this is helpful mark brainlist if right then no if wrong
Explanation:
Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.Technologies employed by the native inhabitants of a country and which constitute an important part of its cultural heritage and should therefore be protected against exploitation by industrialized countries; the problem of indigenous knowledge has been discussed during the Rio Conference but it does not receive much ...Types of indigenous technology in India are; (i) Generic Drugs. (ii) Thorium based Nuclear Reactors. (iii) Plastic RoadsIndigenous Technology is created within a sensory environment that builds on our sense of relationship, meaning, balance, feeling, memory and place as well as sight, sound, smell, taste and touchIndigenization is the process by which Indigenous ways of knowing, being, doing and relating are incorporated into educational, organizational, cultural and social structures of the institution.One example of Indigenous Technologies in action today can be witnessed in differential approaches to medicine. Medical technologies in the Western Scientific sense of the term might conjure images of biomedical research labs, electromagnetic monitors or imaging systems such as CT or MRI scans.Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.
When making decisions, managers should consider all relevant benefits and relevant costs, which include: (Check all that apply.) Multiple select question. incremental costs. opportunity costs. historical costs. out-of-pocket costs. sunk costs.
Answers
Answer:
opportunity costs, incremental costs, out-of-pocket costs
Explanation:
The cost of the following finest possibility that is sacrificed is referred to as the opportunity cost. These are important considerations while deciding between two alternative options.The costs that the firm pays out of pocket are known as out of pocket charges. These are important considerations while making a judgment
The variation in costs between two decisions is referred to as incremental costs. All of these are important in making decisions.
The available positions are essential and require limited interaction with the public. There is no remote or telework available for this position. Do you have any concerns?
Answers
Based on the information provided, it appears that the available positions are necessary for the functioning of the organization and do not require a lot of interaction with the public. Additionally, it seems that remote or telework options are not available for these positions.
In terms of concerns, it would depend on the individual's personal circumstances and preferences. For example, if the individual has health concerns or responsibilities that make in-person work difficult, they may have concerns about the lack of remote work options. On the other hand, if the individual prefers in-person work or values the stability of a traditional office job, they may not have any concerns.
Overall, it is important for individuals to assess their own needs and preferences when considering job opportunities. If the available positions align with their interests and priorities, then they may be a good fit. However, if there are significant concerns about the nature of the work or the lack of remote options, then it may be best to explore other opportunities that better suit their needs.
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Under an acceptable method of costing by-products, inventory costs of the by- product are based on the portion of the joint production cost allocated to the by-product Select one: a. minus any subsequent processing cost. b. plus any subsequent processing cost. c. but any subsequent processing cost is debited to the cost of the main product. d. but any subsequent processing cost is debited to revenue of the main product
Answers
Answer:
b. plus any subsequent processing cost.
Explanation:
In the case of the acceptable costing method for by-products the inventory cost that are depend upon the joint cost should be distribution to the by-product plus if there is any processing cost
that means
Inventory cost of the bu-product = joint cost + processing cost
Therefore the same should be considered
Which statement describes the effect of taxes on a traditional 401(k) retirement account?
A.
A traditional 401(k) is tax exempt because the income earned isn't taxed until the money is withdrawn.
B.
A traditional 401(k) is a taxable account because the income earned is taxed when it is contributed.
C.
A traditional 401(k) is tax deferred because the income earned isn't taxed until the money is withdrawn.
D.
A traditional 401(k) is tax exempt because the income earned is never taxed.
Answers
Answer:
C.
A traditional 401(k) is tax deferred because the income earned isn't taxed until the money is withdrawn.
Explanation:
There are two types of 401 k plans: traditional 401k and Roth 401k plans. The difference is the way there are taxed.
The traditional 401k plan is an employer-sponsored retirement scheme. The employer withholds the employee contributions and remits the funds to the employee's 401k savings account. The amount deducted as the employee contribution is not subject to taxation at that point. Contributions to 401k plans reduce the employee's taxable income.
The amounts saved in a 401k plan are invested and generate income. Employees are not expected to pay taxes on the income generated every financial period. All taxes are deferred until the time of withdrawal.
Answer:
C. A traditional 401(k) is tax deferred because the income earned isn’t taxed until the money is withdrawn.
Explanation:
PLATO
3
Roscoe is helping his cousin redesign her family room. They work together to select a white leather couch, two white brocade chairs, and a large
white rug. They pick out some white throw pillows with different textures--some are knitted, and others are linen. Which BEST describes the
color scheme that Roscoe is creating?
A.
monochromatic
B.
complementary
OC.
primary
D.
analogous
Kk
Answers
Answer: Monochromatic
Explanation: Mono = 1, Chromatic = color: Everything is white.
1. Based on the profit-loss statement, does Rings and Things have a positive or negative cash flow?
Why?
Answers
Answer:
They have a negative cash flow.
Explanation:
Because their net operating activities is not breaking even, in other words, they are losing money.
when considering how warranty repairs, spare parts, etc., impact demand, abc vehicles is determining for all assemblies and components that go into hybrid vehicles.
Answers
When considering how warranty repairs, spare parts, and other factors impact demand, ABC Vehicles is conducting an assessment for all assemblies and components that go into hybrid vehicles.
This assessment likely involves analyzing the potential effects these factors have on overall demand for the hybrid vehicles produced by ABC Vehicles.
By examining warranty repairs, spare parts availability, and related factors, ABC Vehicles can gain insights into how these elements influence customer satisfaction, ownership costs, and the overall perception of their hybrid vehicles in the market. This analysis allows ABC Vehicles to make informed decisions and take appropriate actions to meet customer expectations and maintain a competitive edge.
Some considerations that ABC Vehicles might explore include:
Warranty Repairs: Assessing the frequency and cost of warranty repairs provides valuable information about the reliability and durability of the hybrid vehicles. Understanding patterns of repairs helps identify areas where improvements are needed, leading to enhanced customer satisfaction and reduced warranty expenses.
Spare Parts Availability: Evaluating the availability and accessibility of spare parts ensures that customers can conveniently obtain necessary replacements or repairs when required. A robust spare parts supply chain helps minimize vehicle downtime, reinforces customers' confidence in the brand, and contributes to aftermarket revenue generation.
Impact on Demand: Analyzing how warranty repairs and spare parts availability affect customer perceptions and satisfaction can provide insights into their impact on demand for hybrid vehicles. Positive experiences with warranty services and readily available spare parts can enhance brand reputation, encourage repeat purchases, and generate positive word-of-mouth referrals.
Cost Considerations: Careful analysis of warranty repair costs, spare parts pricing, and related expenses helps ABC Vehicles determine the financial implications of these factors. Balancing the cost of providing warranty services and spare parts against the perceived additional value they bring to customers helps ABC Vehicles make strategic pricing decisions and maintain profitability.
By conducting a comprehensive assessment of how warranty repairs, spare parts availability, and related factors impact demand, ABC Vehicles can proactively address issues, improve customer satisfaction, and make informed decisions to drive the success of their hybrid vehicle offerings.
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definition of a stakeholder
Answers
(in gambling) an independent party with whom each of those who make a wager deposits the money or counters wagered.
2.
a person with an interest or concern in something, especially a business.
Which of the following would be the most insurable risk?
a. A teenager getting car insurance for his brand new, 2-door, convertible, 5-speed sports car
b. A family wanting flood insurance for a house built on a flood plain
c. A business owner wanting to get liability insurance for his indoor skate-park
d. A good driver driving a safe car getting auto insurance
Answers
Answer:
d. A good driver driving a safe car getting auto insurance would be the most insurable risk.
This is because, in this scenario, the driver has a good driving record, which is a key factor in determining insurance risk. Additionally, the car is considered safe, which also reduces risk. Insurers generally prefer to insure drivers who are considered low-risk, as they are less likely to make a claim.
An increase in the selling price per unit will decrease an organization's operating leverage, assuming sales unit volume doesn't change and there are no other changes in its cost structure.a) trueb) false
Answers
Answer:
a) true
Explanation:
This is true because, increasing the price of the product sold by an organisation directly lead to the reduction of the operating cost of the said organization, all other things being equal. For example, a glass manufacturing company increasing the selling price per unit glass from $40 to $90 will definitely lead to operating cost reduction.
The Solow model demonstrates that A) in the absence of productivity growth, economic growth will turn negative in the long run. B) in the absence of productivity growth, economic growth will reach a steady state of zero per-capita growth in the long run. C) productivity growth will inevitably decline due to diminishing marginal productivity. D) productivity growth must exceed the rate of growth in the population to avoid a steady state in the long run
Answers
Answer:
Option B: In the absence of productivity growth, economic growth will reach a steady state of zero per-capita growth in the long run
Explanation:
The Solow model
This is the production function that gives people enough free hand or rooms to consider the accumulation of capital as a useful tool of long-run economic growth it is a dynamic model. Even if it can only mathematically solve for the endogenous variables in steady state, they are subscripted by time because the model holds at all points in time. And its addition to the production model includes capital stock is therefore not exogenous and the accumulation of capital is a possible tool of long-run economic growth.
Solow Model Strengths includes;
1. It gives a theory that shows how rich a country is in the long run( e.g. steady state)
2. It helps to understand differences in growth rates by using the principle of transition dynamics
Solow Model Weaknesses includes.
1. If the main tool studied in the model is investment in physical capital, that explains only a small fraction of the differences in income across countries
2. The model do not clearly explain differences in investment rates etc.
Define The Term "Inelastic"
Answers
Answer:
its about stuff you need day to day
like water, gasoline, housing, and food
when the price goes up or down consumers' buying habits are the same
"static quantity of a good or service when its price changes"
Investopedia lumenlearning
Answer:
: not elastic: such as. a : inflexible, unyielding. b : slow to react or respond to changing conditions
Explanation:
hope it helps you:)
Specific factors of a venture being offered for sale that should be examined include a. the industry growth rate. b. strength of competitive forces. c. weaknesses, opportunities, and threats. d. all of the above.
Answers
Specific factors of a venture being offered for sale that should be examined include d. all of the above.
What is venture ?venture can be regarded as a business enterprise which involves making a risk as as to the make profit.
Therefore, when making a venture , weaknesses, opportunities, and threats should be take into consideration.
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In terms of organization architecture, _____ refers to the employees of the organization, the strategy used to recruit, compensate, and retain those individuals, and the type of people that they are in terms of their skills, values, and orientation.
Answers
In terms of organization architecture, people refers to the employees of the organization, the strategy used to recruit, compensate, and retain those individuals, and the type of people that they are in terms of their skills, values, and orientation.
An integrated set of performance measures that are derived from the company's strategy is ______.
Answers
An integrated set of performance measures that are derived from the company's strategy is the balanced scorecard,
The Balanced Scorecard is a management system designed to translate an organization's strategic objectives into a set of organizational performance objectives that are measured and monitored as needed to ensure that the organization's strategic objectives are met. , and fixed.
Balanced Scorecard is a strategic performance management tool. A well-structured report that managers can use to track the execution of activities by employees under their control and monitor the results of those actions.
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