3. If a share currently pays Br 1.50 annual dividends, is expected to grow at a rate of 5% per year and has a required return of 14% what should its share price be? ​

Answers

Answer 1

If a share currently pays Br 1.50 annual dividends, is expected to grow at a rate of 5% per year and has a required return of 14% . Its share price is: Br 16.67.

What is the share price?

To calculate the share price using the dividend discount model we can use the formula:

Share Price = Dividends / (Required Return - Dividend Growth Rate)

Where:

Annual dividends = Br 1.50

Dividend growth rate = 5% = 0.05

Required return = 14% = 0.14

Let plug in the formula

Share Price = Br 1.50 / (0.14 - 0.05)

Share Price = Br 1.50 / 0.09

Share Price = Br 16.67

Therefore the share price should be Br 16.67.​

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Related Questions

Valuation Profession & Ethics Syllabus Major Project for Case Study of Stock Manipulation by China’s Pangang Group
Requirements:
1. Why does Ansteel offer put options as part of Pangang Group’s restructuring? Is this common?
2. Why did Ansteel and Pangang V&T agree to swap assets in December 2010? What was the impact of this asset swap on Pangang V&T’s stock price?
3. What explains the turnaround in Pangang V&T’s profitability in 2010? How did Pangang V&T’s stock perform;
4. How is Pangang V&T valued relative to its industry peers? In your opinion, is this valuation justified?
5. Do you believe Pangang V&T manipulated its earnings to inflate its stock price? Why or why not? If so, what should Professor Chen do about it?
6. What ethical considerations are involved in the case of Pangang Group's stock manipulation? How could these be addressed and prevented in the future;
7. Analyze the potential impact of the stock manipulation on investors, stakeholders, and the overall market. What actions should be taken to mitigate this impact?
8. Evaluate the role of government regulators in preventing and addressing cases of stock manipulation. What regulations and enforcement measures could be put in place to improve transparency and accountability in the stock market?
9. Examine the impact of corporate culture and leadership on ethical behavior within companies. How could Pangang Group's leadership have influenced the culture and behavior of the company in this case?
10. Reflect on the lessons learned from the Pangang Group case. What are the key takeaways for the valuation profession and ethical conduct in the business world?

Answers

1. Ansteel likely offered put options as part of Pangang Group's restructuring to manage the risk associated with the restructuring process. Put options would allow Ansteel to sell its shares at a predetermined price if the stock price were to decline. This risk management strategy is relatively common in restructuring deals.

2. Ansteel and Pangang V&T agreed to swap assets in December 2010 to optimize their respective business portfolios. The impact on Pangang V&T's stock price would depend on the perceived value of the assets being exchanged and the market's reaction to the strategic alignment of the companies.

3. The turnaround in Pangang V&T's profitability in 2010 could be attributed to various factors, such as improved operational efficiency, cost reduction measures, or increased demand for its products. The performance of Pangang V&T's stock would depend on market expectations and investor sentiment regarding the company's prospects.

4. Pangang V&T's valuation relative to its industry peers would require a comparative analysis of financial ratios, market multiples, and other relevant metrics. Justifying the valuation would involve assessing the company's financial performance, growth prospects, competitive position, and market conditions.

5. Determining whether Pangang V&T manipulated its earnings requires a thorough examination of its financial statements, accounting practices, and supporting evidence. If manipulation is found, Professor Chen should report the findings to relevant regulatory authorities and consider appropriate actions based on their guidance.

6. Ethical considerations in the case of stock manipulation involve the integrity of financial reporting, fair treatment of investors, and compliance with regulations. Addressing and preventing such issues can be achieved through robust internal controls, independent audits, whistleblower protection, and effective regulatory oversight.

7. The potential impact of stock manipulation on investors, stakeholders, and the overall market can be detrimental, leading to market distortions, financial losses, and erosion of trust. Actions to mitigate this impact may include investigations, sanctions, compensation mechanisms, and enhanced transparency and disclosure requirements.

8. Government regulators play a crucial role in preventing and addressing stock manipulation. They can implement regulations and enforcement measures to enhance transparency, accountability, and fairness in the stock market. This may involve stricter disclosure rules, increased penalties for violations, improved surveillance systems, and investor education initiatives.

9. Corporate culture and leadership can significantly influence ethical behavior within companies. In the case of Pangang Group, leadership could have influenced the culture and behavior by setting a tone of integrity, promoting ethical decision-making, and establishing strong governance mechanisms. Assessing their impact would involve examining the company's code of conduct, management practices, and the level of transparency and accountability demonstrated.

10. Key takeaways from the Pangang Group case for the valuation profession and ethical conduct in the business world include the importance of accurate financial reporting, the need for effective regulations and oversight, the significance of ethical leadership, and the role of transparency and accountability in maintaining market integrity.

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Which of the following is a domestic influence on foreign policy?

Answers

Domestic factors are a significant determinant of a state's foreign policy. Domestic issues can impact a country's foreign policy, and the manner in which it deals with foreign policy. Domestic influences on foreign policy include factors like the political system, public opinion, interest groups, and the media.

This article explains the domestic influences on foreign policy in detail.A country's political structure has a significant influence on its foreign policy. In an authoritarian regime, foreign policy is often directed by the leadership, while in a democratic nation, the government and legislature frequently make foreign policy decisions. Foreign policy decisions are usually driven by the political climate and power structure within the country.The public's opinions on foreign policy issues are another crucial element in shaping a country's foreign policy. Leaders, political elites, and the media must be mindful of public opinion since it influences the decisions taken. Public sentiment may sometimes differ from the government's stance, necessitating that the administration take a different approach to foreign policy.Interest groups are another domestic factor that can influence foreign policy. Interest groups represent people's specific interests and have a stake in the foreign policy. The interests of these groups may conflict with those of the government, forcing the administration to alter its foreign policy.The media is yet another crucial influence on foreign policy. The media have a significant influence on public opinion and can also shape the government's actions by reporting on issues that need to be addressed or how the public is reacting to particular foreign policy decisions.Conclusively, domestic factors such as political structure, public opinion, interest groups, and the media are all critical factors in shaping a country's foreign policy. It is essential to recognize and examine these factors to understand the impact they have on a nation's foreign policy.

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The next step in your plan is to identify which
government regulations will impact your business.
In two to three sentences, describe what those
regulations are and how you plan to meet them. Hurry pls

Answers

Once you have identified these regulations, you can develop a compliance strategy that may involve obtaining necessary permits and licenses, implementing appropriate processes and policies, conducting regular audits, and seeking professional advice if needed.

Without knowledge of the specific nature of your business, it is not possible to provide precise details about the regulations that may impact you.

Some common regulations that could affect businesses across various industries include health and safety regulations, labor laws, environmental regulations, data protection laws, licensing and permits requirements, and taxation laws.

To identify the applicable regulations, it is crucial to consult with legal experts or regulatory bodies specific to your industry.

Once identified, you can create a compliance plan that may involve implementing safety protocols, maintaining proper employee records, adopting environmentally friendly practices, implementing data protection measures, obtaining necessary licenses and permits, and ensuring accurate tax reporting and payment.

Seeking professional advice and staying updated on regulatory changes will be essential to effectively meet these obligations and ensure compliance in your business operations.

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Answer:

Sample Response: We must both pass serious health inspections made by the local government and advertise what we use to make our yogurt.

Explanation:

EDG

please briefly describe the two Business valuation principles which are principle of expectations and principle of growth. And provide an in-depth analysis on how understanding each principles help valuation professional’s maneuverer the complexity of valuation.

Answers

Answer: Business valuation is a complex process that involves several principles, including the Principle of Expectations and the Principle of Growth. These principles are critical to understanding how valuation professionals maneuver through the complexity of valuation. In this essay, I will briefly describe these principles and provide an in-depth analysis of their importance in business valuation.

The Principle of Expectations is a fundamental principle in business valuation. It refers to the idea that the value of a business is based on the expectations of its future earnings. This principle assumes that the value of a business is directly proportional to its future earnings potential. Therefore, the higher the expected earnings of a business, the higher its value.

Valuation professionals must understand this principle because it provides them with insight into what factors can affect the future earnings potential of a business. For example, changes in the economy, competition, or technology can have a direct impact on a business's future earnings potential. Therefore, understanding the Principle of Expectations can help valuation professionals assess the impact of these factors on a business's value.

The Principle of Growth is another essential principle in business valuation. It refers to the idea that the value of a business is directly proportional to its growth rate. This principle assumes that companies with high growth rates are more valuable than those with low growth rates. This is because companies with high growth rates are perceived to have a higher potential for future earnings, which, in turn, increases their value.

Valuation professionals must understand this principle because it allows them to assess the potential for future growth of a business. For example, if a company has a low growth rate, valuation professionals may look for ways to increase its growth potential to increase its value. This could involve expanding into new markets, developing new products, or investing in research and development.

By understanding these principles, valuation professionals can maneuver through the complexity of valuation by assessing the potential future earnings and growth prospects of a business. This helps them to arrive at a fair and accurate valuation of the business, which is crucial for making informed investment decisions.

In conclusion, the Principle of Expectations and the Principle of Growth are two critical principles in business valuation. Valuation professionals must understand these principles as they help to maneuver through the complexity of valuation and arrive at a fair and accurate valuation of the business. By assessing the potential future earnings and growth prospects of a business, valuation professionals can make informed investment decisions that are in the best interest of their clients.

Explanation: I don't need one. * i hoped this helped*

Stock Manipulation by China's Pangang Group Case Answers. start from the Introduction – Stock Manipulation by China’s Pangang Group

Answers

Answer:sui

Explanation:

Enhancing market transparency, strengthening regulatory frameworks, and working with foreign counterparts are essential for regulators and authorities to address the problem of stock manipulation. These initiatives can safeguard investors' interests, advance fair and equitable trading procedures, and preserve the integrity of the stock market.

A stock market, equity market, or share market is the collection of buyers and sellers of stocks (also known as shares), which represent ownership claims on businesses.

These securities may include stock that is only traded privately, such as shares of private companies that are sold to investors through equity crowdfunding platforms, as well as stock that is listed on a public stock exchange. Typically, while making an investment, a plan is in mind.

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Your question is probably incomplete, the complete question is :

Stock Manipulation by China's Pangang Group Case Answers including introduction. 1. Why does Ansteel offer put options as part of Pangang Group’s restructuring? Is this common?

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