a firm just paid $4.80 per share in dividends and the dividend is expected to grow at 3.2% a year in the future. estimate the value of the stock if its equity cost of capital is 10.6%?

Answers

Answer 1

If the equity cost of capital is 10.6% and the dividend is projected to increase by 3.2% annually in the future, the estimated value of the stock is $64.86 per share.

To estimate the value of the stock, we can use the Gordon Growth Model, which is commonly used to value stocks with a constant growth rate in dividends.

The formula for the Gordon Growth Model is:

Value of Stock = Dividend per Share / (Cost of Equity Capital - Dividend Growth Rate)

Using the given information, we have:

Dividend per Share = $4.80

Dividend Growth Rate = 3.2%

Cost of Equity Capital = 10.6%

Plugging these values into the formula, we get:

Value of Stock = $4.80 / (0.106 - 0.032)

Value of Stock = $4.80 / 0.074

Value of Stock = $64.86

Therefore, the estimated value of the stock is $64.86 per share if its equity cost of capital is 10.6% and the dividend is expected to grow at 3.2% a year in the future.

To learn more about equity cost of capital click here

brainly.com/question/14041475

#SPJ4


Related Questions

which of the following is an attribute of a successful acquisition? a. merged firm maintains moderate to high debt position b. acquisition is unfriendly c. acquiring firm conducts ineffective due diligence to select target firms and effectively evaluate the target firms' health d. acquiring firm has financial slack

Answers

Option (d), An indicator of a successful acquisition is the purchasing company's financial flexibility.

What factors indicate whether a purchase was successful?

The two primary criteria of success are the price of the acquisition and the value produced. Particularly when taking over publicly listed companies is involved, too many acquisitions fall short of these conditions. Be cautious until there are strong tactical and financial arguments to the contrary.

How is the financial adaptability of a corporation assessed?

Free cash flow is a measure of a company's capacity to adjust its finances. A company's ability to respond to investment opportunities like strategic acquisitions increases with the amount of free cash flow it produces.

Learn more about acquisition: https://brainly.com/question/29216359

#SPJ1

Fill in the blank. a ______________________ should be used to keep records that you need on a regular basis and documents with limited value.
home file
computer
secure folder
safe deposit box
locked drawer

Answers

Answer:

A home file should be used to keep records that you need on a regular basis and documents with limited value.

companies often consider outsourcing so they can focus on their core competencies. true/false

Answers

The given statement in the given question about core competencies is True.

Outsourcing is a business practice where a company hires a third-party to perform specific tasks or services that would otherwise be done in-house. Outsourcing allows companies to focus on their core competencies, which are the key areas of the business where they have a competitive advantage or expertise. By outsourcing non-core activities, companies can free up resources such as time, money, and personnel to focus on developing and improving their core competencies. Additionally, outsourcing can provide cost savings, access to specialized expertise, and improved quality of work. However, outsourcing also comes with potential risks, such as loss of control over the outsourced function, language and cultural barriers, and possible impacts on employee morale.

To learn more about core competencies click here

brainly.com/question/14438508

#SPJ4

isabella pays $500 each month in after tax dollars for health insurance premiums. she is not self-employed. during the current year, she also incurred $200 in doctor bills and $50 in over-the-counter medications. her agi is $45,000. what amount will she be able to deduct as an itemized deduction after the agi floor is applied? multiple choice question. $2,825 $6,200 $0 $1,700 $4,500

Answers

The sum she can deduct as an organized derivation after the AGI floor is applied is $1700. option (C) is correct.

Monthly health tax = $500

Total for the year = $500 × 12 = $6000

Doctor bills = $200

AGI = $45,000

Citizens younger than 65 can't deduct clinical costs until they surpass 10% of Changed Gross Income(AGI), which is determined as the contrast between the Absolute Gross Pay and a few deductibles.

Isabella is 50 and can deduct clinical costs when they surpass 10% of AGI.

All out clinical costs = $6000 +$200 = $6200

10% of AGI = 45,000 × 0.1 = $4500

In this manner, Well-being costs are over 10% AGI.

Accordingly, organized derivation;

$6200 - $4500 = $1700. Therefore option (C) is correct.

Learn more about agi floor:

https://brainly.com/question/29348102

#SPJ4

This question is not complete, Here I am attaching the complete question:

Isabella pays $500 each month in after tax dollars for health insurance premiums. she is not self-employed. during the current year, she also incurred $200 in doctor bills and $50 in over-the-counter medications. her agi is $45,000. what amount will she be able to deduct as an itemized deduction after the agi floor is applied? multiple choice question.

(A) $2,825

(B) $6,200

(C) $1,700

(D) $4,500

what retail strategy has the objectives of building a data warehouse that links customer data to their transactions and encouraging repeat purchase behavior and loyalty?

Answers

Frequent-shopper programs,  is a retail strategy has the objectives of building a data warehouse that links customer data to their transactions and encouraging repeat purchase behavior and loyalty.

It fulfil two basic goals:

(1) create a customer data warehouse that connects consumers to transactions; and (2) promote repeat purchase and loyalty.

Hence, answer is Frequent Shopper Program.

Are frequent shopper programmes expensive to administer and implement?

The implementation and administration of frequent-shopper programmes are costly.

Transparent frequent-shopper programmes are successful. Consumers in the platinum market attach higher importance on a product's pricing. The term "1-to-1 retailing" refers to creating retail strategies for individuals or small groups of clients.

To know more about Frequent Shopper Program visit:

https://brainly.com/question/6623798

#SPJ1

allocations of overhead should not affect a project's incremental cash flows unless the: group of answer choices project actually changes the amount of overhead expenses overhead will not be recovered at the end of the project overhead is not currently fully allocated to existing projects accountant is required to allocate costs to this project

Answers

Unless they genuinely change the total amount of overhead expenses, allocations of overheads shouldn't have an impact on a project's incremental cash flows.

What doesn't the incremental cash flow consist of?

The Cash receipts or debts from other areas of your organization is not included in the incremental cash flow. It solely contains the money earned and used for that particular project. Additionally, it excludes cannibalization, opportunity costs, and sunk costs.

What standards govern incremental cash flow?

When examining incremental cash flows, a number of factors must be taken into account, including the original investment, cash flows from accepting the project, the project's final cost or value, and the project's scope and timeline.

To know more about incremental cash flows visit:-

https://brainly.com/question/16908161?

#SPJ1

what does research indicate about the practice of satisficing? a. it is used more often by experts than novices. b. it is generally effective in making good decisions. c. it takes less time but leads to higher costs. d. none of the above.

Answers

According to the provided choices of alternatives, it may be said that the research indicates about the practice of satisfying that it is generally effective in good decision-making. Therefore, the option B holds true.

The research and decision-making are the two-most indispensable and inter-linked factors. Many times, it is also experienced by the researchers that the decision-making is a prerequisite to conducting and undergoing any research project, thereby making it an important procedure in making good decisions at the end of it.

Learn more about research here:

https://brainly.com/question/28459603

#SPJ4

if real gdp per capita in the united states is $10,000, what will real gdp per capita in the united states be after five years if real gdp per capita grows at an annual rate of 2.9%?

Answers

If real GDP per capita in the United States grows at an annual rate of 2.9%, after five years, the real GDP per capita will be approximately $11,550.

To calculate the real GDP per capita in the United States after five years, we will use the formula for compound interest:

Future Value = Present Value * [tex](1 + growth rate)^{number of years}[/tex]

In this case, the present value is the current real GDP per capita ($10,000), the growth rate is 2.9% (0.029), and the number of years is 5.

Future Value = $10,000 * [tex](1 + 0.029)^{5}[/tex]

Now, we'll calculate the future value:

[tex](1.029)^{5}[/tex]  = 1.155

$10,000 * 1.155 = $11,550

So, if real GDP per capita in the United States grows at an annual rate of 2.9%, after five years, the real GDP per capita will be approximately $11,550. This calculation assumes a constant growth rate and doesn't take into account potential fluctuations in the economy or other external factors that could influence GDP growth. However, it provides a useful estimate of the potential growth in real GDP per capita over the specified period.

Know more about GDP per capita here:

https://brainly.com/question/18414212

#SPJ11

ssume that you make an investment of $100,000 in 2015 that has a value of $122,504 3 years later in 2018. what is the compound annual growth rate (cagr) of your investment?

Answers

The CAGR (Compound Annual Growth Rate) of an investment of $100,000 in 2015 that has a value of $122,504 three years later in 2018 is 7.14%.

Compound Annual Growth Rate (CAGR) is a measure of the growth of an investment over time. It is a measure of the return on an investment over time, taking into account the effect of compounding. CAGR is calculated by taking the nth root of the total growth factor of an investment over n years and then subtracting 1.

In order to calculate the CAGR of an investment of $100,000 in 2015 that has a value of $122,504 three years later in 2018, we can use the following formula:

CAGR = (FV / PV) ^ (1/n) - 1

Where,FV = Future value of the investment, PV = Present value of the investmentn = Number of years between the investment and the current date.

Therefore, the CAGR of the investment can be calculated as follows:

CAGR = ($122,504 / $100,000) ^ (1/3) - 1= 0.0714 or 7.14%

Therefore, the compound annual growth rate (CAGR) of the investment is 7.14%.

To know more about growth rate click on below link :

https://brainly.com/question/13870574#

#SPJ11

an organization wants to use disciplined agile to improve the effectiveness and efficiency of the product development process, reduce waste, and deliver products faster to the market. which disciplined agile layer should the organization focus on to meet these requirements?

Answers

To improve the effectiveness and efficiency of the product development process, reduce waste, and deliver products faster to the market using Disciplined Agile, the organization should focus on the Process layer.

The Process layer of Disciplined Agile provides guidance on how to optimize the development process to increase efficiency, reduce waste, and deliver value faster. This layer includes process goals and decision points that help teams choose the right development approach and adapt it to their specific needs.

By focusing on the Process layer, the organization can identify and eliminate inefficiencies in the product development process, streamline workflows, and improve collaboration between team members. This can help to reduce waste and deliver products to market faster.

In addition, the Process layer provides guidance on how to continuously improve the development process over time, through regular retrospectives and feedback loops. This can help the organization to continuously adapt and improve its processes to meet changing market conditions and customer needs.

To know more about the Agile, here

https://brainly.com/question/30110721

#SPJ4

In an agency relationship involving two parties, the agent agrees to represent or act for the principal
T/F

Answers

True. In an agency relationship, the agent agrees to act on behalf of and represent the interests of the principal, who grants the agent the authority to act within certain limits.

An agency relationship is a legal arrangement in which one party, the agent, agrees to act on behalf of another party, the principal. The agent is authorized by the principal to make decisions and take actions on their behalf within certain limits. This could include entering into contracts, making financial decisions, or representing the principal in legal proceedings. The agent is bound by a fiduciary duty to act in the best interests of the principal and must not act in a way that could harm the principal's interests. In return, the agent may receive compensation or other benefits from the principal. The agency relationship is a fundamental aspect of business and legal relationships, and it is important that all parties involved understand their rights and responsibilities under the arrangement.

learn more about agency relationship here:

https://brainly.com/question/30064987

#SPJ4

list two things the federal government spends your tax dollars on that you benefit from?

Answers

Answer:

Social Security and Medicare

Explanation:

Federal government spending pays for everything from Social Security and Medicare to military equipment, highway maintenance, education, and more. In 2022, the federal government spent the most on Social Security.

hope this helps

social security and medicare are both things the government spends tax dollars on.

households receive their income in the circular flow diagram by selling the goods they produce at home. selling resources they own to business firms. selling the use of their property. obtaining dividends and interest payments.

Answers

Households receive their income in the circular flow diagram by selling the use of their property.

The circular flow model of the economy is a concept that depicts how money flows through the economy, from households to businesses and government agencies and back again. Households and businesses are the two main agents in this system, which work together to keep the economy running.

Households are considered the source of economic activity, as they provide the resources required to generate goods and services. They receive income in exchange for their labor and resources, which they then use to purchase goods and services produced by businesses.

In the circular flow model, households receive their income in the form of rent, wages, and profits. They also receive interest and dividends from investments made in stocks and bonds.

To know more about households click here:

https://brainly.com/question/29351418

#SPJ11

you are assigned to select a new 5hp motor for an industrial facility. the motor will operate at essentially rated load for two shifts a day, five days a week. you have a couple of options, a nepact motor with an efficiency of 88.2% and a cost of $235 or a nema premium motor with an efficiency of 90.5% and a cost of $320. power costs a $0.10/kwh. how long is the payback period for the higher efficiency motor? what would be the cost savings over the 20-year life of the motor?

Answers

The payback period for the higher efficiency motor (nema premium motor) is 0.71 years, and the cost savings over its 20-year life is $2392.

To calculate the payback period for the higher efficiency motor and the cost savings over its 20-year life, you can use the following formula:

Payback period = (Motor cost difference) / (Savings from higher efficiency motor)

Savings from higher efficiency motor = (Power costs) x (Hours of operation) x (Difference in efficiency)

Using the data provided, we can calculate the following:

Motor cost difference = $320 - $235 = $85

Power costs = $0.10/kWh

Hours of operation = 2 shifts a day * 5 days a week * 52 weeks a year = 520 hours/year

Difference in efficiency = 90.5% - 88.2% = 2.3%

Therefore, Savings from higher efficiency motor = $0.10/kwh * 520 hours/year * 2.3% = $119.6/year

Payback period = $85/$119.6/year =0.71 years

Cost savings over 20 years = $119.6/year * 20 years = $2392

Thus, the payback period for the higher efficiency motor is 0.71 years, and the cost savings over its 20-year life is $2392.

Learn more about efficiency:

https://brainly.com/question/18059790

#SPJ11

which of the following is not a category of program revenue reported on the statement of activities at the government-wide level? group of answer choices capital grants and contributions. operating grants and contributions. charges for services. general program revenues.

Answers

On the statement of activities at the federal level, the category "capital grants and contributions" is not one of the programme revenue categories.

The funding for the purchase or construction of long-term assets, such as buildings, land, or equipment, comes from outside sources, such as public or private organisations, as well as people. The receiving government may be required to match a portion of the grant amount, and these monies are often restricted to particular capital projects or programmes. For governments that might not have the resources to carry out such initiatives on their own, capital grants and contributions can offer significant financial help for infrastructure development or other capital projects. The reporting of these money, which is normally included in the government's financial accounts, is crucial for financial responsibility and transparency.

Learn more about "capital grants and contributions" here:

https://brainly.com/question/15298028

#SPJ4

oriel and jane, husband and wife, operate a sole proprietorship. they expect their taxable income next year to be $450,000, of which $250,000 is attributed to the sole proprietorship. orie and jane are contemplating incorporating their sole proprietorship. using the married-joint tax brackets and the corporate tax rate in tax rates at the end of the book, find out how much current tax this strategy could save oriel and jane. how much income should be left in the corporation

Answers

Oriel and Jane's taxable annual income is $450,000, and $250,000 of it comes from their sole proprietorship. Oriel and Jane are considering incorporating their sole proprietorship. An amount of $289,500 should be left in the corporation.

Determine the amount of tax savings this plan might provide Oriel and Jane using the married-joint tax brackets and the corporate tax rate in tax rates at the end of the book. The tax rate applicable to married-joint income of $450,000 is 24%.Oriel and Jane's taxable income is $250,000 after the incorporation of the sole proprietorship.The company's taxable income is $250,000 as well. Since the company is incorporated, its tax rate is 21%.The tax paid by Oriel and Jane as a married couple with taxable income of $450,000:0.24*450000 = 108000The tax paid by the company with taxable income of $250,000:0.21*250000 = 52500Total tax paid: 108000 + 52500 = 160500Tax saved by the strategy: 450,000 - 160,500 = 289,500 dollars.If the retained earnings of a corporation exceed $250,000, the corporate tax rate will rise to 35%, so $250,000 should be left in the corporation.Oriel and Jane could save 289,500 dollars by incorporating their sole proprietorship.

Learn more about proprietorship here: https://brainly.com/question/12913114

#SPJ11

based on the cobweb theory, on what price did chicken processors base their production decision in 2013? b. what price were consumers willing to pay for the quantity produced by chicken processors? c. what factors will determine the equilibrium price for chicken over time? d. given your answer to part c, what factors could change this equilibrium price

Answers

The cobweb theory suggests that producer expectations play an important role in determining market prices. According to the theory, chicken processors based their production decision in 2013 on the current market price at that time. They expected the price of chicken to remain stable, and therefore, they decided to continue producing at the same level.

Based on the cobweb theory, consumers were willing to pay the market price for the quantity produced by chicken processors in 2013. If the price of chicken had been too high, there would have been a decrease in demand, leading to lower prices. If the price had been too low, demand would have increased, leading to higher prices.

The market price was therefore determined by the forces of supply and demand, which eventually reached equilibrium. Determining the equilibrium price for chicken over time depends on several factors. These include changes in consumer preferences, production costs, technology advancements, government regulations, and weather patterns.

As these factors change over time, the supply and demand for chicken will also shift, leading to changes in the equilibrium price. Given the answer to part c, several factors could change the equilibrium price for chicken over time. For example, if there was an increase in the cost of production, chicken processors may be forced to increase their prices, leading to a decrease in demand.

On the other hand, if there was an increase in consumer preferences for chicken, demand would increase, leading to higher prices. Weather patterns could also play a role, as droughts or floods could affect the supply of chicken and therefore the equilibrium price.

To know more about market prices  refer here:

https://brainly.com/question/15142612#

#SPJ11

an example of cross-hedging is: question 5 options: use the forward market to buy forward whatever currencies you will receive. find two currencies that are highly positively correlated; match the payables of the one currency to the receivables of the other currency. b and c use the forward market to sell forward whatever currencies you will receive.

Answers

An example of cross-hedging is all of the above. Obtain a forward contract to purchase a currency that is correlated with payables are due, use the forward market to sell and buy currencies you will receive, etc. are examples.

Cross-hedging is a technique used to reduce the risk of a change in the exchange rate of a currency. It involves taking out a forward contract in one currency and using it to offset any potential losses from an existing or expected foreign exchange transaction in another currency.

To further illustrate cross-hedging, two currencies that are highly positively correlated can be used. For example, the Euro and the Swiss Franc are known to be positively correlated. By matching the payables of the Euro to the receivables of the Swiss Franc, you can buy forward the Euro and sell forward the Swiss Franc to hedge against a potential drop in the Euro exchange rate.

Know more about Cross-hedging here:

https://brainly.com/question/15015627

#SPJ11

The complete question is:

An example of cross-hedging is:

a) obtain a forward contract to purchase a currency that is highly correlated with the currency in which the payables are due.

b) use the forward market to sell forward whatever currencies you will receive.

c) use the forward market to buy forward whatever currencies you will pay.

d) use the forward market to sell forward whatever currencies you will receive and use the forward market to buy forward whatever currencies you will pay.

what is the present value of $6,000 to be paid at the beginning of each of the next eight periods assuming an interest rate of 10%? multiple choice $35,211 $75,477 incorrect $68,615 $32,010

Answers

With an interest rate of 10%, the present value of $6,000 to be paid at the start of each of the next eight periods is $32,156.

To calculate the present value of a series of payments, we can use the formula:

[tex]PV = PMT *[1 - (1 + r)^{-n}] / r[/tex]

where:

PMT = the amount of each payment

r = the interest rate per period

n = the total number of periods

In this case, PMT = $6,000, r = 10%, and n = 8. Plugging in these values, we get:

[tex]PV = $6,000 * [1 - (1 + 0.10)^{-8}] / 0.10\\PV = $6,000 * (1 - 0.4632) / 0.10\\PV = $6,000 * 5.3659\\PV = $32,156[/tex]

Therefore, the present value of $6,000 to be paid at the beginning of each of the next eight periods, assuming an interest rate of 10%, is $32,156. The closest option to this answer is $32,010.

To learn more about present value  visit;

https://brainly.com/question/17322936

#SPJ4

in the context of the single-period inventory model, the cost per item of overestimating demand is known as .

Answers

In the context of the single-period inventory model, the cost per item of overestimating demand is known as the overage cost.

The overage cost represents the cost of carrying unsold inventory at the end of the period, which includes the cost of storing, handling, and disposing of the excess inventory. The overage cost is incurred when too much inventory is ordered and demand turns out to be lower than expected, resulting in unsold inventory.

On the other hand, the cost per item of underestimating demand is known as the underage cost. The underage cost represents the cost of lost sales and customer goodwill when demand exceeds the available inventory, resulting in stockouts.

Hence the cost per item of overestimating demand is known as overage cost.

Learn more about overage cost:

https://brainly.com/question/1222851

#SPJ11

the coase theorem suggests that __________ solve the problem of externalities in the absence of transaction costs.

Answers

The Coase Theorem suggests that property rights can solve the problem of externalities in the absence of transaction costs.

In brief, the theorem states that if property rights are well-defined and transaction costs are low, then the parties involved can negotiate a mutually beneficial solution to the problem of externalities. In other words, if there are no transaction costs, then the parties involved can bargain to an efficient solution.

The Coase Theorem provides an important insight into how to deal with externalities. It suggests that if property rights are well-defined and transaction costs are low, then the parties involved can negotiate an efficient solution. This means that both parties can benefit from the externalities, rather than one party bearing the costs and the other receiving the benefits. This solution is more efficient than government intervention, as the government must often impose regulations or taxes that are not necessarily beneficial to all parties.

Know more about Coase Theorem here

https://brainly.com/question/30055194#

#SPJ11

operating roa is calculated as , while roe is calculated as . a) ebit/total assets; net profit/total assets b) net profit/total assets; ebit/total assets c) ebit/total assets; net profit/equity d) net profit/ebit; sales/total assets

Answers

The correct solution for this question is a) EBIT/Total assets; Net profit/Total assets.

what is an asset?

An asset is a resource that is owned or controlled by an individual, company, or organization that has an economic value and can be used to generate future benefits.

Examples of assets include cash, investments, property, inventory, and equipment. Assets are recorded on a company's balance sheet and are typically categorized as current or non-current assets, depending on their expected time to be converted into cash or used up.

To know more about asset related question visit:

https://brainly.com/question/14404094

#SPJ1

consider the following financial statement information for the newk corporation: item beginning ending inventory $ 12,435 $ 15,615 accounts receivable 6,120 6,287 accounts payable 7,930 9,140 credit sales $ 143,187 cost of goods sold 79,218 calculate the operating and cash cycles.

Answers

Newk Corporation's operating cycle is 82.76 days, and the cash cycle is 39.42 days.

The operating cycle refers to the time required to purchase inventory, produce or sell goods, and collect payment for sales. The cash cycle is the time between paying for inventory and receiving payment for sales. Newk Corporation's operating cycle and cash cycle are to be calculated from the provided financial statement information.

The operating cycle is calculated using the following formula: Operating cycle = Inventory period + Receivables period.

Inventory period = (Average inventory ÷ Cost of goods sold) × 365 days

Inventory period = (($12,435 + $15,615) ÷ 2 ÷ $79,218) × 365 days

Inventory period = 66.75 days

Receivables period = (Average accounts receivable ÷ Credit sales) × 365 days

Receivables period = (($6,120 + $6,287) ÷ 2 ÷ $143,187) × 365 days

Receivables period = 16.01 days

Operating cycle = Inventory period + Receivables period

Operating cycle = 66.75 days + 16.01 days

Operating cycle = 82.76 days

The cash cycle is calculated using the following formula:

Cash cycle = Operating cycle − Payables period.

Payables period = (Average accounts payable ÷ Cost of goods sold) × 365 days

Payables period = (($7,930 + $9,140) ÷ 2 ÷ $79,218) × 365 days

Payables period = 43.34 days

Cash cycle = Operating cycle − Payables period

Cash cycle = 82.76 days − 43.34 days

Cash cycle = 39.42 days

For more about financial statement:

https://brainly.com/question/14951563

#SPJ11

an approach that is unlikely to help a company's low-cost provider strategy succeed is multiple choice possessing resources and capabilities to keep costs below those of its competitors. pursuing cost-effective management of value chain activities better than rivals. deploying effective leveraging of cost drivers. having the innovative capability to bypass certain value chain activities being performed by rivals. evolving the capabilities to simultaneously deliver lower-cost and higher-quality/differentiated features.

Answers

The approach that is unlikely to help a company's low-cost provider strategy succeed is having the innovative capability to bypass certain value chain activities being performed by rivals.

While possessing resources and capabilities to keep costs below those of its competitors, pursuing cost-effective management of value chain activities better than rivals, deploying effective leveraging of cost drivers, and evolving the capabilities to simultaneously deliver lower-cost and

higher-quality/differentiated features are all effective strategies for a company's low-cost provider strategy, having the innovative capability to bypass certain value chain activities being performed by rivals is not.

The low-cost provider strategy is a plan that businesses use to provide goods and services at a lower cost than their competitors. This allows companies to sell their goods and services for less than their competitors while still earning a profit.

While having the innovative capability to bypass certain value chain activities being performed by rivals may seem like a viable strategy for reducing costs, it is unlikely to be successful in the long run.

This is because value chain activities are interconnected, and bypassing certain activities can have unintended consequences that may ultimately lead to higher costs.

As a result, companies that rely on this approach are likely to be less successful than those that use other, more comprehensive approaches to cost reduction.

To know more about Low cost provider here

https://brainly.com/question/28275068

#SPJ11

true or false: without knowing the future, it is not obvious which cost structure is better: a structure with higher fixed costs and lower variable costs or a structure with lower fixed costs and higher variable costs. true false question. true false

Answers

True, without knowing the future, it is not obvious which cost structure is better. This is because the choice of structure will depend on the forecasted sales and production volumes, as well as the expected prices and cost of inputs.

For example, if the forecast shows that sales and production volumes will be low, a structure with higher fixed costs and lower variable costs may be preferable. This is because, with a fixed cost structure, the fixed costs are spread out over a larger number of units and therefore the cost per unit is lower.

On the other hand, if the forecast shows that sales and production volumes will be high, then a structure with lower fixed costs and higher variable costs may be preferable, as this would reduce the fixed costs per unit and therefore increase the profit margin. Therefore, without knowing the future, it is impossible to know which cost structure would be best.

Know more about forecast here

https://brainly.com/question/30167588#

#SPJ11

build a one-variable data table to show the sensitivity of npv to changes in the value of wacc. what does this tell you?

Answers

To build a one-variable data table to show the sensitivity of NPV to changes in the value of WACC, we can follow the below steps: Enter the given input values of WACC and initial investment, NPV formula.

Set up a one-variable data table in a new worksheet in the following way:

a. Copy the value of the initial investment to the first column.

b. Copy the WACC input values to the first row.

c. Enter the NPV formula in the table cells.

The table will show the sensitivity of NPV to changes in the value of WACC. We can observe how different values of WACC impact the NPV of the investment. This information is useful to make investment decisions that involve calculating NPV. To learn how to build a one-variable data table to show the sensitivity of NPV to changes in the value of WACC, we can refer to the following steps:

Enter the values for the variables WACC and initial investment, and the NPV formula into a blank worksheet. Create a one-variable data table in a new worksheet that lists different values for the WACC variable in one column. In the second column of the data table, copy the formula cell by clicking on it and dragging it down the entire length of the data table. Alternatively, we can also use the cell reference feature to link the data table to the NPV formula. Set the data table so that it automatically recalculates whenever the value of WACC changes. We can do this by using the "What-If Analysis" tool under the "Data" tab on the ribbon.

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used to evaluate the profitability of an investment or project. If the NPV is positive, then the investment is profitable, whereas if the NPV is negative, the investment is not profitable.

For more about variable data:

https://brainly.com/question/29488129

#SPJ11

which of the following are challenges potentially presented by alliances or joint ventures? (a) partners may have different goals and priorities. (b) one partner may absorb all the knowhow of the other and subsequently become a competitor. (c) they tend to break down when one of the partners attempts to expand into an emerging market.

Answers

lliances and joint ventures can present challenges such as partners having different goals and priorities, one partner absorbing all the knowhow of the other and subsequently becoming a competitor, and breakdowns when one partner attempts to expand into an emerging market.  (A,B,C)

When two or more parties come together to form an alliance or joint venture, they each bring their own goals and objectives. As a result, they may have different expectations and priorities which can lead to misunderstandings and disagreements.

One partner may absorb all the knowledge and skills of the other, making the latter become a competitor. This can lead to disputes and animosity.

Additionally, alliances and joint ventures can be difficult to maintain if one of the partners attempts to expand into an emerging market. The different business strategies and approaches can make it hard for the partnership to succeed. (A,B,C)

To know more about joint ventures click on below link:

https://brainly.com/question/30154434#

#SPJ11

briefly explain what mortgage backed securities are and how they were used to draw more investors into the market.

Answers

Mortgage-backed securities (MBS) are investment instruments backed by mortgages.

These securities can be backed by a single mortgage, a pool of mortgages, or a group of mortgage-backed securities. In the United States, these securities are commonly known as mortgage-backed securities.

They were used to attract more investors into the market, as they are designed to make investing in mortgages more accessible and efficient.Investors in mortgage-backed securities, or MBS, receive payments from borrowers' interest and principal payments.

Mortgage-backed securities are also tradable, making them an attractive investment option for a variety of investors.In the early 1980s, mortgage-backed securities became popular in the United States as a way to finance home purchases.

Many investors were attracted to the high returns and low risk associated with these securities. The investors were drawn to the market because it provided higher yields than traditional government or corporate bonds with the same credit rating.

The securitization of mortgages also helped to increase the number of mortgages available in the market, providing more liquidity and making it easier for borrowers to obtain a loan. The increase in liquidity was good for the mortgage industry as a whole, as it allowed lenders to lend more money and for longer periods.

The MBS market has evolved since its inception in the 1980s. There are now many types of MBS, including those backed by government-sponsored entities such as Fannie Mae and Freddie Mac, and those backed by private investors.

The market has also expanded to include commercial mortgage-backed securities (CMBS), which are backed by commercial real estate mortgages.

To know more about Mortgage-backed securities (MBS) here

https://brainly.com/question/14279011

#SPJ11

1. currently, the most significant federal budget expenditures are retirement social security and medicare (42%), social programs (22%), and national defense (22%). do you agree with that distribution, yes or no? explain using no more than 32 words. 2. mention one (1) advantage that supports your answer

Answers

1. Yes, I agree with that distribution because it prioritizes the needs of the elderly, the poor, and national security while maintaining fiscal sustainability.

2. The advantage of this distribution is that it ensures that the federal government fulfills its obligations to its citizens while keeping the budget under control.

To know more about  fiscal sustainability refer here:

#https://brainly.com/question/27993296#

#SPJ11

Aggregate expenditure includes all of the following, except:O Consumption spendingO Net ExportsO Government spendingO Aggregate demand

Answers

Aggregate demand is the correct response. - Aggregate expenditure encompasses all of the Aggregate demand

Aggregate expenditure is the total amount of spending in an economy on goods and services within a certain period. It is computed by summing the four parts of GDP: net exports, government expenditure, investment spending, and consumption spending (NX).

Consequently, alternatives A, B, and C are all included in aggregate expenditure, but option D, which is aggregate demand, is not a component of aggregate expenditure. The total demand for products and services in an economy at a particular price level is referred to as aggregate demand.

Learn  more about “ Aggregate demand   “ visit here;

https://brainly.com/question/29349235

#SPJ4

Other Questions
consider two massless springs connected in series. spring 1 has a spring constant k1 , and spring 2 has a spring constant k2 . a constant force of magnitude f is being applied to the right. when the two springs are connected in this way, they form a system equivalent to a single spring of spring constant k . what is the effective spring constant k of the two-spring system? Line plot titled, Width of Crocus Plants. There is a line labeled, Width in Centimeters. There are tick marks representing values from 8 to 10, partitioned into tenths. Each fifth tick mark is labeled with a decimal number, 8, 8 and 5 tenths, 9, 9 and 5 tenths, and 10. There is one mark above the first tick mark after 8. There are two marks above the third tick mark after 8. There is one mark above the second tick mark after 8 and 5 tenths. There are 3 marks above the first tick mark after 9. There is one mark above the first tick mark after 9 and 5 tenths. There is one tick mark above the third tick mark after 9 and 5 tenths. There is one mark over 10. What is the total width of the plants that are 8.5 cm or less? 3 centimeters 24 centimeters 24.7 centimeters 30 centimeters in a state lottery, a player must choose 8 of the numbers from 1 to 40. the lottery commission then performs an experiment that selects 8 of these 40 numbers at random. a player has one ticket. what is the probability that the player has all 8 of the number selected by the lottery commission? Which of the following is an example of an interest group?Group of answer choicesThe AARPThe Senate Select Committee on IntelligenceThe Congressional Budget OfficeThe Green Party de > V.5 Circles: word problems davHayley works at a lab with a huge circular particle accelerator. It has been carefullyengineered to have a circumference of 25.12 kilometers. What is the accelerator's diameter?Use 3.14 for . If necessary, round your answer to the nearest hundredth.IkilometersSubmit Where does the commas goes. She thought women would want to see a female doctor rather than a male about their health concerns. commas at which point in a titration are the concentrations of the weak acid and its conjugate base approximately equal? what governmental system did Thomas Paine's pamphlet Common sense claim was corrupt in 1776 A. Royal Court System B. Democratic Republic C. Open Elections a group of individuals that can interbreed in nature and produce viable offspring would be considered to be a species according to the:a.Phylogenic species conceptb.Biological species conceptc.Evolutionary species conceptd.Ecological species concepte.General lineage concept persuasive speeches that attempt to influence or reinforce particular beliefs, attitudes, or values are known as what? group of answer choices a speech to intervene a speech to listen to a speech to convince a speech to produce when jason comes home from work every day, he opens the garage door and pulls his car into the garage. his dog, spot, hears the noise of the garage door opening and the car entering the garage before son comes through the garage door. now, when spot hears the garage door open, spot runs to the garage door to greet ashon. this is an example of what is the ''Land of counterpane'' Circle A has a diameter of 18in.Circle B has a circumference of 36inCircle A has an area of 324 in2True or False explain._______________________________________________________Please help ASAP! My assignment is due tomorrow and is 45% of my grade!!! ALSO NEED BY MONDAY!!! Find the EXACT length of each leg. There is a building shaped like a square based pyramid. The length of each side of the building' base is 60 meters and the height of the building is 80 meters. which of the following answer choices is an equation for the circle with a center of (3,-2) and a radius of 2? Determine (with working) whether the following numbers are in the sequence with the nth term formula. If so, indicate the position of the term:(need answer asap please)-> 30 in 5n-> 90=3n+2 2. Which of the following would you keep in an office quick-list file?O A. Your personal checking account numberO B. Equipment catalogsOC. An instruction manualO D. Commonly asked customer questions I need help with this problem. If you're able to solve this, thanks! read this line from song of the open road. afoot and lighthearted, i take to the open road. how do the words afoot and lighthearted affect the tone of the poem?