Answer:
Price of stock = $40
Explanation:
According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.
This is done as follows:
Price of a stock = D×(1+r)/(r-g)
D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8
g- growth rate - 10%
r- required rate of return - 15%
Price of stock = 1.8× (1.1)/(0.15-0.1)
= $40
Answer:
C) budget constraint
Explanation:
The budget constraint is a graph of all the combinations of goods and services a consumer can purchase given prices and income of the consumer.
The absolute slope of the budget constraint is the relative price of the two goods represented on the graph.
I hope my answer helps you
Answer:
4. Available investments
Explanation:
To enable me estimate my available investments, I need my bank statements, credit statements and record of cash expenses
Answer:
The correct answer is letter "E": both A and B.
Explanation:
At the moment of creating a strategic plan, companies must also outline contingency strategies in case the master plan does not work. These contingency plans work as alternative systems that, just like the master plan, englobe all the activities and steps the firm will follow to keep the business up and running.
Therefore, the alternative systems also include the resources available the firm counts on to conduct its operations which will also let the company be aware of the limits it has in the for its day-to-day and long-term activities.
Answer:
6.4%
Explanation:
we need to divide this investor's income in two parts:
- dividends are not taxed = $5,000 x 5% = $250
- capital gains = (selling price - basis) x (1 - tax rate) = ($4,975 - $4,900) x (1 - 15%) = $75 x 85% = $63.75
total after-tax gains = $250 + $63.75 = $313.75 / $4,900 = 0.064 ≈ 6.4%
