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NEW QUESTION: 1
Given that the beginning value on a stock is $530, expected earnings are $50, the dividend payout ratio is
40%, and the required rate of return is 14%, what is the minimum expected ending value of the stock that makes it a profitable investment?
A. Not enough information
B. $611.20
C. $604.20
D. $584.20
E. $591.20
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Expected dividends equal 50 x 0.4 = $20. In order for a stock to be a good investment, its rate of return should be equal to or greater than the required rate of return. The minimum ending value that would make the stock investment in this question profitable is given by the equation (P2 + D) / P1 = 1 + k, where P2 is the ending value, P1 is the beginning value, D is the expected dividend, and k is the required rate return.
Rearranging this yield P2 = ((k + 1) x P1) - D In this question, the minimum ending value is (1.14 x 530) -
20 = $584.20.

NEW QUESTION: 2
Which strategy is most efficient at yielding accurate results from a search based on a litigation hold?
A. Identifying information in databases
B. Retrieving information from off-site storage facilities
C. Evaluating email and electronic systems
D. Developing search parameters
Answer: D

NEW QUESTION: 3
In order for a company to transition to a cloud solution, which of the following should the company check FIRST before transitioning? (Select TWO).
A. IT operations policy
B. Company stock performance
C. Virtual desktop environment
D. Service level agreements
E. Business needs
Answer: D,E