The constant growth valuation formula has dividends in the numerator. dividends are divided by the difference between the required return and dividend growth rate as follows: p0p0 = = d1rs−gd1rs−g1. which of the following statements is true? a. increasing dividends will always decrease the stock price, because the firm is depleting internal funding resources. b. increasing dividends will always increase the stock price. c. increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.2. walter utilities is a dividend-paying company and is expected to pay an annual dividend of $0.85 at the end of the year. its dividend is expected to grow at a constant rate of 9.50% per year. if walter’s stock currently trades for $20.50 per share, then the expected rate of return on the stock is: a. 9.56%b. 13.65%c. 11.60%d. 17.75%3. walter’s dividend is expected to grow at a constant growth rate of 9.50% per year. what do you expect to happen to walter’s expected dividend yield in the future? a. it will increase. b. it will decrease. c. it will stay the same.

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Which ranks these careers that employers are most likely to hire from the least to the greatest?