E (P) = $2.00 x (1.05) / (.1) E (P) = $2.10 / .1 E (P) = $ 21.00 The stock value is $21.00. 2. Suppose the riskiness of the stock decreases, which causes the required rate of return to fall to 13%. Under these conditions, what is the stock’s value? D = the most resent dividend which is = $2.00 per share. E (g) = the constant growth rate = 5% = 0.05 per year. R (Re) = Investors rate of return on the stock = 13% = 0.13
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As the world’s largest non-alcoholic beverage company, Coca-Cola generates petabytes of data from various sources. Multi-channel retail data, customer profile data from loyalty programs, social media data, supply chain data, competitor data, sales and shipment data from bottling partners as well as transaction and merchandising data. Coca-cola collects vast amounts of data and they take a refreshing approach in exploiting that data and deriving value from it. Chief Big Data Insights Officer, Esat
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Oligopoly is a market structure in which a few firm dominate the industry, it is an industry with a 5 firm concentration ratio of greater than 50%. In Oligopoly, firms are interdependent; this means their decisions (price and output) depend upon how the other firms behave: •Barriers to entry are likely to be a feature of Oligopoly •There are different models to explain how firms may behave The kinked demand curve model suggest firms will be profit maxi misers. Kinked Demand Curve Diagram
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Alibaba Group Management recommendations and preparation Company summary: Alibaba is one of the Chinese biggest e-commerce company, with hundreds of millions of customers buying products from three main sites: Taobao, Tmall and Alibaba.com. Since the development of Alibaba, the company has established a leading in the e-commerce, online payment, B2B online marketplace and cloud computing business. They provide a platform for small businesses and individual entrepreneurs to open online stores
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The Happiness Machine How Google became such a great place to work. By Farhad Manjoo A few years ago, Google’s human resources department noticed a problem: A lot of women were leaving the company. Like the majority of Silicon Valley software firms, Google is staffed mostly by men, and executives have long made it a priority to increase the number of female employees. But the fact that women were leaving Google wasn’t just a gender equity problem—it was affecting the bottom line. Unlike
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In writing Essence of Decision, Graham Allison and Philip Zelikow attempt to produce not only a comprehensive academic assessment of the Cuban missile crisis, and explain the rationale that defined the shape and outcome of that event, but to challenge the conventional method of studying international relations through a single conceptual “lens,” the Rational Actor Model (RAM). The major assumptions that underlie the RAM, that states consider all available options and choose rationally in order to
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those three judges, “they rose above their prejudices, their education, and their background. . . . I commend these three men as individuals, not as representations of the court or of the state or even of their race, but as exemplars of human decency under adversity” (Mandela, 1994, p. 261). In 1963 Mandela had been re-arrested among other eighteen key leaders in an underground ANC (African National Congress) meeting. Unfortunately, the arrest
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Rational decision making is tied with a structured or sensible thought process. The theory of rational choice starts with having a set of alternatives by the decision maker in his mind. Most analysts only study a limited set of alternatives that contain the important difference among the alternatives. Such behavior of analysts need attention. Sanglier, M. et al (1994) showed that when different investors received the same information they had their own interpretation of this information. These various
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Advance Directives are our wishes when we are at end of life stages of life that give specific direction of how, who, and when to treat us in our final days and hours. We can have documents drawn up to say what we want in the event we are in a state where we cannot voice our wishes aloud. These documents have legal and ethical basis, and they should be followed unless the legally or ethically unable to do so. Advance Directives gives a documented guide to the care giver’s or family member’s, so
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The market value of the firm is then the value of its net financial assets plus the value of its capital assets (less any other liabilitiesUnder non-ideal conditions, it may be difficult to write down a complete set of states of nature and associated cash flows. Even if these can be written down, difficulties remain because objective state probabilities are not available. This is perhaps the most fundamental difficulty, since these probabilities must be subjectively estimated. Also an interest rate
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