Answer:
$56.19
Explanation:
Because Hot Wings' stock only pay dividend in next four years, the stock intrinsic value is sum of these four discounted dividends. Let formulate the calculation as below:
Hot Wings' stock intrinsic value = Dividend in year 1/(1 + Required rate of return) + Dividend in year 2/(1 + Required rate of return)^2 + Dividend in year 3/(1 + Required rate of return)^3 + Dividend in year 4/(1 + Required rate of return)^4
= (10.25 + 8.25)/(1 + 12%) + (10.25 + 8.25)/(1 + 12%)^2 + (10.25 + 8.25)/(1 + 12%)^3 + (10.25 + 8.25)/(1 + 12%)^4 = $56.19
Roger is wrong by 3cm, so
3/15 X 100 = 20% error.
When there is a return of fee to a franchiser, the business
owner will likely receive the right of having to sell the goods and services of
franchisers in which the business owner has the capability of legally selling
the goods that the franchiser owns.
I think the answer is credit
hope this helps
