The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $12.50, all of which was reinvested in the company. The firm’s expected ROE for the next five years is 21% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6, the firm’s ROE on new investments is expected to fall to 16%, and the company is expected to start paying out 45% of its earnings in cash dividends, which it will continue to do forever after. DEQS’s market capitalization rate is 20% per year. A. What is your estimate of DEQS’s intrinsic value per share?B. Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year?C. What do you expect to happen to price in the following year?D. What is your estimate of DEQS’s intrinsic value per share if you expected DEQS to pay out only 25% of earnings starting in year 6?

Panera bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. the company began in 1981 with stores primarily located along the east coast of the united states. since then, the firm has expanded to over 1,300 locations throughout the united states and canada. the firm has strong earnings and has been designated by business week as a "significant growth company." panera bread executives are considering the idea of expanding globally by opening cafes in asia through a franchising strategy. which of the following, if true, supports the argument that panera bread should expand into asia through franchising? a: the panera bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. b: panera bread executives want fast access to the asian market without a significant investment of capital. c: panera bread executives want to test the asian market with a short-term commitment that allows them to make quick profits. d: the panera bread mission is to make excellent bread available to customers around the world.

Long-distance providers are becoming increasingly concerned about certain activities within their industry. various companies come together voluntarily to implement new standards of social responsibility that members must abide by. what seems to be the primary motivation in this case for an increased interest in social responsibility? - because corporations are creations of society, they are responsible for giving back to the communities in which they operate.- these companies have realized it is in their best interest to increase their social responsibility before they are once again subject to stricter regulations.- these companies are using social responsibility as a means to increase their profitability, both short term and long term.- long-distance providers have started taking pride in their industry and its record for social responsibility.- they feel a responsibility to their stockholders, employees, the government, investors, and society as a whole.

Explain the relationship between consumers and producers in economic growth and activity