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

Ways to organize process flows, Ways to Organize Process Flows Five t...

Ways to Organize Process Flows Five types of process technologies are project, job shop, batch, assembly line and continuous. Each  is more  or less  suited to different  pro

Quine glucosamine, The vice president of operations for a veterinary provid...

The vice president of operations for a veterinary provide company has designed a new quality control process that she believes will significantly decrease the reject rate in the pa

Thesis, Litrature review on personnel management in public sector for susta...

Litrature review on personnel management in public sector for sustainable development

badminton competition, how the college student to manage badminton competi...

how the college student to manage badminton competition

Concept of PLC and video games, considering the concept of product life cy...

considering the concept of product life cycle where would you put the video games in their life cycle

Functional management roles, The qualities and competencies needed to becom...

The qualities and competencies needed to become an effective Project Manager are completely different to those required in more traditional Functional Management roles. To what

What is le plan, Q. What is Le plan? In France All the business units w...

Q. What is Le plan? In France All the business units will follow the centralized plan of the government. Such plans are prepare with the view of Maximization of national resour

Value chain, I would like to know about valuechain analysis if it is a serv...

I would like to know about valuechain analysis if it is a service company. What is inbound logistics and outbound logistics of the company? Thank you

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