Answer:
Explanation:
Price is sum of:
1. Present value of expected dividend payments during 1-4 years;
2. Present value of the expected market price at the end of the fourth year based on growth at 5%.
Present value of expected dividend payments during 1-4 years:
PV1 = 3*(1+0.30)*0.8929 = 3.90*0.8929 = $3.482
*0.8929 = 1/1.12
PV2 = 3.90*1.30*0.7972 = 5.07*0.7972 = $4.042
PV3 = 5.07*1.30*0.7118 = 6.591*0.7118 = $4.691
PV4 = 6.591*1.30*0.6355 = 8.5683*0.6355 = $5.445
Total = $17.661
Present value of the expected market price at the end of the fourth year:
Market price of the share at the end = 5th year dividend/(Required rate of return - growth rate)
5th year dividend = $8.5683*(1+growth rate) = $8.5683*(1+0.05) = $9
Market price of the share at the end = $9/(0.12-0.05) = $128.57
Present value of $128.57 is 128.57*0.6355(present value interest factor for year 4) = $81.7
So the price of share is $17.661+$81.7 = $99.37
Answer: To help you calculate how much money you have in your account. The best way to ensure the accuracy and safety of your accounts is to.. Monitor your online accounts regularly.
Explanation:
Arch duke of Fran's Ferdinand. Hope this helps
Answer: all of the options
Explanation:
Triffin paradox simply explains the economic interests conflicts that are faced by the countries that have their currencies been used as standards for global currencies.
The Triffin paradox was first proposed by Professor Robert Triffin. He also
warned that the gold-exchange system of the Bretton Woods agreement was programmed to collapse in the long run and was also responsible for the eventual collapse of the dollar-based gold-exchange system in the early 1970s.
