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Samsung produces powerful handsets. Recently, the company paid a $1.25 dividend.
Investors expect the dividends to grow constantly at 8% per year, and they require a 12% return on Samsung's shares.
(a) What is Samsung's share price?
(b) How would the share price change if investors believe that Samsung's long-term growth rate would be 7% rather than 8%?
(c) If Samsung would expand its business to the semi-conductor industry, the investors would change their expectation accordingly. The expected growth rate of dividends would be 10%, but the required rate of return would increase as well, to 15%. What is the new share price for Samsung? Please also provide your judgment whether Samsung should step into the semi-conductor industry.
1.planning models that are more sophisticated than the percent of sales method have2.firms that achieve higher growth
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Today, you can get either 121 Canadian dollars or 1,288 Mexican pesos for 100 U.S. dollars. Last year, 100 U.S. dollars was worth 115 Canadian dollars or 1,291 Mexican pesos. Which one of the following statements is correct given this information?
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does the concept of revenue less expense equaling an increase in equity or fund balance make sensenbsp to you? if not
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