Answer:
P14 = $55.69545045394 rounded to $55.70
Explanation:
The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 represents the expected dividend for Year 1 or the following year
- g denotes the constant growth rate for dividends
- r signifies the discount rate or the required rate of return
To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded to $1.67
Now applying the DDM formula for the price,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded to $55.70
Answer:
The right choice is B: Gap 2.
Explanation:
The gaps model of service quality, known as the 5 gaps model, is essential for organizations to guarantee customer satisfaction. Gap 2 specifically addresses the disparity between management perceptions and the actual customer experience. In this gap, managers make it a priority to define and deliver the expected quality of service. In this instance, FedEx is addressing customer-defined performance standards, indicating it plays a significant role in closing Gap 2 in the service quality gaps model.
Answer: 90 days and 4.06 times
Explanation:
The short-term operating cycle is calculated by adding Average production process time + Days goods are held + Days Accounts receivable are due]
= 40 + 15 + 35
= 90 days
With a 365-day year, the cycle will turnover;
= 365/90
= 4.0556
= 4.06 times
Cathy's clientele consists of two-thirds residential customers and one-third business customers, with 350 residential customers in total.
Determine:
The overall number of customers
Solution:
Considering 350 represents two-thirds of the total customers, divide 350 by 2 to get 175, which equals one-third of the customer base.
175 × 3 = 525
<span>Thus, the total customer count is 525.</span>
