subject
Business, 21.03.2020 10:29 tyryceschnitker

REH Corporation's most recent dividend was $ 1.73 per share, its expected annual rate of dividend growth is 5%, and the required return is now 15%. A variety of proposals are being considered by management to redirect the firm's activities. Determine the impact on share price for each of the following proposed actions. a. Do nothing, which will leave the key financial variables unchanged. b. Invest in a new machine that will increase the dividend growth rate to 6% and lower the required return to 13%. c. Eliminate an unprofitable product line, which will increase the dividend growth rate to 8% and raise the required return to 19 %. d. Merge with another firm, which will reduce the growth rate to 1% and raise the required return to 18%. e. Acquire a subsidiary operation from another manufacturer. The acquisition should increase the dividend growth rate to 8 % and increase the required return to 19%.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 23:20
On october 2, 2016 starbucks corporation reported, on its form 10-k, the following (in millions): total assets $14,329.5 total stockholders' equity 5,890.7 total current liabilities 4,546.9 what did starbucks report as total liabilities on october 2, 2016? select one: a. $12,516.7 million b. $6,377.3 million c. $995.0 million d. $8,438.8 million e. none of the above
Answers: 2
question
Business, 22.06.2019 11:40
Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?
Answers: 1
question
Business, 23.06.2019 10:20
Which theorem states that no two species competing for the exact same resources can coexist? which theorem states that no two species competing for the exact same resources can coexist? resource partitioning principle complex community network principle dominance species principle competitive exclusion principle?
Answers: 3
question
Business, 23.06.2019 11:00
The average month end closing stock price for company a over the past year is $34.57 with a standard deviation of $4.65. the average month end closing stock price for company b over the same period is $26.15 with a standard deviation of $7.45. based on this data, we can conclude that the stock price for company a is more consistent when compared to the stock price for company b.
Answers: 3
You know the right answer?
REH Corporation's most recent dividend was $ 1.73 per share, its expected annual rate of dividend gr...
Questions
question
English, 31.08.2020 14:01
question
Mathematics, 31.08.2020 14:01
question
Physics, 31.08.2020 14:01
question
History, 31.08.2020 14:01
question
Biology, 31.08.2020 14:01
question
English, 31.08.2020 14:01
question
English, 31.08.2020 14:01
question
Mathematics, 31.08.2020 14:01
question
Mathematics, 31.08.2020 14:01
Questions on the website: 13722360