Answer:
The price of the stock today is $15.63
Explanation:
The three stage Dividend Discount model will be used to calculate the price of this stock as the dividends are growing at three different growth rates. These dividends will be discounted back to calculate the price of the stock today.
The price per share today under this model will be:
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+gC) / (r - gC)] / (1+r)^n
Where,
- D1 is the dividend expected for the next period of Year 1.
- gC is the constant growth rate or third stage growth rate that will last forever.
P0 = 1.25 / (1+0.2) + 1.25 * (1+0.4) / (1+0.2)^2 + 1.25 * (1+0.4) * (1+0.2) / (1+0.2)^3 + 1.25 * (1+0.4) * (1+0.2)^2 / (1+0.2)^4 +
[1.25 * (1+0.4) * (1+0.2)^2 * (1+0.08) / (0.2 - 0.08)] / (1+0.2)^4
The P0 = $15.625 rounded off to $15.63
Answer:
b) the method to reduce costs of producing automobile glass, but not the formula for the substance that prevents smudging.
Explanation:
As provided, the professor develops a way which shall reduce the cost of producing the automobile glass, which apparently is very easy for anyone to copy and use.
Whereas, when a company develops the formula which creates a substance that prevents the automobile glass from getting smudged is again a technological knowledge although not that common.
Since the first one is apparently easy and other is patented which means both are common else not so common idea will not need patent as people would not be able to create such formula.
Answer:
the total amount owed to general unsecured creditors is $71,000
Explanation:
The computation of the total amount owed to general unsecured creditors is shown below:
= Account payable + wages payable + taxes payable + interest on note payable + interest on bond payable
= $40,000 + $6,000 + $12,000 + $5,000 + $8,000
= $71,000
hence, the total amount owed to general unsecured creditors is $71,000
The same is to be considered
Answer:
The more you invest and the earlier you start means your retirement savings will have that much more time and potential to grow, compound earnings may be the result of investing earlier and continuing to invest.
Explanation:
Answer:
Joint Tenancy
Explanation:
Each tenant was given an equal share.
The conveyance deed was completed on a specific date passing all the land fairly to all tenants.
The Hera, Aphrodite, Athena and Ares also bear the title of Mutual Tenancy as Zeus transmitted Mount Olympus to them.
Therefore the correct option is Joint Tenancy and the same is to be considered