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Ratling [72]
1 year ago
11

19. Suppose Wamba Itd paid a dividend last year amounting to sh 100,000. The dividend stream is expected to grow by 10% indefini

tely. If the discount rate is 20% what is the PV of the dividends?​
Business
1 answer:
Alinara [238K]1 year ago
8 0

The PV of the dividends is  107,843.1374.

Present value is the idea that states a sum of money these days is worth extra than that same quantity in the future. In other phrases, cash obtained in the future is not well worth as a great deal as an equal quantity obtained today.

The dividend cut price model DDM is a quantitative technique used for predicting the price of an enterprise's inventory primarily based on the idea that its gift-day fee is really worth the sum of all of its future dividend bills when discounted and returned to its present fee.

A dividend last year amounting to sh 100,000.

The dividend stream is expected to grow by 10%

The discount rate is 20%

The PV of the dividends is

​  Future Value = 10% 0f 100,000

                         = 10,000

Total future value = 100,000 + 10000

                            110000 =

       rate = 20%

Present Value= Future Value /  (1+interest rate%)

                      = 110000 / (1 + 0.2)

                      = 110000/1.02

                     = 107,843.1374

Learn more about dividends here:-brainly.com/question/25845157

#SPJ4

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Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claim
SSSSS [86.1K]

Answer:

The correct answer is I and II.

Explanation:

Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets because of several reasons.  

The financial intermediaries such as commercial banks, mutual funds, insurance companies, pension funds, etc. are more diversified than individual investors. They provide a number of options for borrowing and lending.  

These intermediaries work on a larger scale than an individual investor. They are thus able to reap the advantages of economies of scale which an individual investor cannot.

8 0
3 years ago
What is the correct answer...A, B, or C?
Mamont248 [21]
B, to avoid potential liability issues
5 0
3 years ago
Name any three (3) tests that Hornbill Holdings can use to assess the graduates
nadya68 [22]

Three tests that can be used to assess graduates include:

  • Skills and knowledge psychometric tests.
  • Ability and aptitude psychometric tests.
  • Personality tests.

<h3>What are some tests that can be used to test graduates?</h3>

A skills and knowledge psychometric test will allow Hornbill Holdings to find out how knowledgeable a graduate is in their industry and its processes.

They can also use an ability and aptitude test to find out how adaptive the graduate is to new situations.

Personality tests can then find out if the graduate has the right type of personality for the culture at Hornbill Holdings.

Find out more on graduate testing at brainly.com/question/16321787.

5 0
2 years ago
When a company purchases another company and the purchase price is greater than the fair value of the net assets acquired, this
34kurt

Answer:

Goodwill

Explanation:

Goodwill is an intangible asset, reported on the balance sheet asset side. It is used yearly for the impairment tests.

When the company purchase another company and its purchase price is more than the fair value of the net asset so the excess amount would be called as a goodwill

The fair value of the net asset is come from subtracting the

= Company assets - company liabilities

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