subject
Business, 04.10.2019 21:20 kinglightskin2k

Milton glasses recently paid a dividend of $1.70 per share, is currently expected to grow at a constant rate of 5%, and has a required return of 11%. milton glasses has been approached to buy a new company. milton estimates if it buys the company, its constant growth rate would increase to 6.5%, but the firm would also be riskier, therefore increasing the required return of the company to 12%. should milton go ahead with the purchase of the new company?
a. yes, because the value of the milton co. will increase by $3.17 per shareb. yes, because the value of the milton co. will increase by $2.56 per sharec. yes, because the value of the milton co. will increase by $4.59 per shared. no, because the value of the milton co. will decrease by $3.17 per share

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 16:50
The cost of labor is significantly lower in many countries than in the united states. if you move manufacturing to a facility to a country labeled as part of the axis of evil and a threat to world peace you will increase the net income of your client by $10 million per the facility is located in a country which limits personal freedom and engages in state sponsored terrorism. imagine you are a marketing consultant. (a) what would you tell the executives to do? (b) what are the alternatives? what are your recommendations? why do you recommend this course of action?
Answers: 1
question
Business, 22.06.2019 22:10
Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.
Answers: 1
question
Business, 22.06.2019 23:10
Jake and janelle loved to prepare gourmet meals for friends and family. they started a business of preparing theme-type dinners for friends who were having parties. to generate even more interest in the business, janelle created on her website. she posted pictures of events, and close-ups of the food they served. she encouraged patrons and others to post reviews, comments, and favorite recipes, and to share their own party ideas. her promotion became a dialogue between buyers of her service and the business. interactive promotion infomercials product placement broadcast
Answers: 2
question
Business, 23.06.2019 01:10
1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)
Answers: 1
You know the right answer?
Milton glasses recently paid a dividend of $1.70 per share, is currently expected to grow at a const...
Questions
question
History, 15.04.2021 23:10
question
History, 15.04.2021 23:10
question
Mathematics, 15.04.2021 23:10
question
Mathematics, 15.04.2021 23:10
Questions on the website: 13722362