3, Management Theories

Assignment Help:
Johnson has to decide whether to purchase a preference share which redeemable or one which is not.
The redeemable share is $1000 per value share which promises 15% dividend annually with a call price of 975 in (six)6years time whereas the non redeemable share of the same par value pays 18%  dividend the redeemable and non redeemable have market value of $990 and $1025 respectively.
Assume the investors required rate of return to16%
a.which share should Johnson purchase and why?
b.Purity incorporated has a share which pays a dividend of $4.5 to shareholder last year.It is expected dividend will increase at a rate of 4% for the first year.
8% for the next  four(4) years and pick at 6% forever the required rate of return 9.5%
What is the value of the share today?
Thanks

Related Discussions:- 3

Principles of management, explain the development of management thought, sc...

explain the development of management thought, scientific management

Managerial functions, Directing  Directing is the managerial function ...

Directing  Directing is the managerial function concerned with the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and

Cost accounting, what is cost accounting as art, science and practice?

what is cost accounting as art, science and practice?

Management buyout (mbo), Management Buyout (MBO) MBO is the transfer of...

Management Buyout (MBO) MBO is the transfer of ownership to new owners of an entity where the old management and employee base are significant elements.

Doubt , why doctor''s work is said as a practice

why doctor''s work is said as a practice

Ethics, AsDiscuss in scholarly detail what managers can do to increase the ...

AsDiscuss in scholarly detail what managers can do to increase the probability that ethics training influences organization members to act ethically over time?k question #Minimum 1

Business process automation and reengineering, Papa John's Inc. Scheduling ...

Papa John's Inc. Scheduling System Started in Jacksonville, Indiana in 1983 at Mick's Lounge, where Papa John, John Schnatter, started a pizza delivery business within his f

Negotiations and dispute resolutions, your team has been complaining about ...

your team has been complaining about excessive demands in the workplace and you have been put in charge of developing a plan. Describe what your plan will contain

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd