Aaron Inc. has 321 million shares outstanding. It expects earnings at the end of the year to be $641 million. The firm's equity cost of capital is 11%
Aaron pays out 50% of its earnings in total: 30% paid out as dividends and 20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 7% per year, what is Aaron's share price?
A) $12.48
B) $24.96
C) $37.44
D) $49.92
Answer: B
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Which of the following is most likely to be considered unethical?
A. Galaxy Inc. ceased its operations in some developing nations on account of low employment standards in those countries. B. Unicorn Inc. sells its medicines at a lower price in less developed nations. C. Capricorn Inc., a multinational company operating in developing nations, pays its labor 30 percent more than what the local competitors pay. D. Centaur Inc. had to close down a production plant as the local management there had employed child labor. E. Orion Inc. sends its waste products for disposal to a developing nation because the pollution control laws in its home country are much more strict than those in the developing nation.
What are four core processes in a firm and how are they related?
What will be an ideal response?