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NEW QUESTION: 1
Assume the following information for the common stock of Clay Industries, a large industrial firm:
Required rate of return on equity: 14.5% per year
Expected growth rate: 12.50% per year
Dividend at t0: $0.70
Assuming that the growth rate will remain constant, what is the projected value of Clay Industries common stock?
A. None of these answers
C. The answer cannot be calculated from the information provided
In this example, the growth rate of dividends is assumed to remain stable, allowing the use of the Gordon Model. The Gordon Model is also known as the "constant growth dividend discount model" and takes the following form:
P0 = [D1 / (r - g)]
P0 = the price of common stock X at time 0
D1 = the expected dividend at t1
r = the required rate of return on equity investments and g = the expected growth rate of dividends.
Since the dividend at t1 is not provided, we must calculate it manually by multiplying the dividend at t0 by (1 + g). This will produce an answer of $0.7875 at t1.
Now that the dividend at t1 has been determined, the given information can be put into the equation provided, leading to the following series of calculations:
P0 = [$0.7875 / (.145 - .125)] = $39.38.
When using the Gordon model, remember that the required rate of return "r" must be greater than the expected growth rate "g." Otherwise, this equation will produce a nonsensical answer.
NEW QUESTION: 2
CGE is experiencing numerous issues with its existing profile management solution. The Citrix Architect managing the project is tasked with designing a solution that alleviates existing issues and, if possible, minimizes the loss of existing customizations. Configuration changes need to be implemented quickly and with minimal complexity.
Why does enabling 'Profile streaming' when configuring Citrix Profile management without folder redirection benefit CGE's Sales end-user group?
A. It improves application performance.
B. It simplifies home drive cleanup.
C. It allows faster logons.
D. It minimizes the required storage needed for folder redirection.
NEW QUESTION: 3
When implementing EoMPLS on Cisco IOS XR routers, which command under the l2vpn configuration mode is used to define the pseudowire?
NEW QUESTION: 4
A company has computers running Windows 7 Enterprise. The company also has one file server and two domain name servers running Windows Server 2008 R2.
user's computer can correctly resolve the IP address of the file All computers except for one server from its host name. The user's computer is resolving the file server's host name to an incorrect IP address. The user's computer can access the Internet but cannot access the file server.
You need to recommend actions that can be performed on the user's computer to resolve the host name of the file server.
What should you recommend? (Choose all that apply.)
A. Run the ipconfig /registerdns command.
B. Remove the file server
C. Run the ipconfig /release and ipconfig /renew commands. 's entry in the HOSTS file.
D. Run the ipconfig /flushdns command.
E. Run the hostname command.