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raketka [301]
1 year ago
6

4. The current dividend on a stock is $2 per share and investors require a rate of return of 12%. Dividends are expected to grow

at a rate of 3% in year 1; 6% in year 2; 4% in year 3 and then at a rate of 5% per year forever. Find the intrinsic value of the stock.
Business
1 answer:
masha68 [24]1 year ago
4 0

The intrinsic value of the stock is $29.44.

<h3>What is the intrinsic value of the stock?</h3>

The first step is to determine the value of the dividend at the end of each year:

Dividend in Y1 = 2. x 1.03 = 2.06

Dividend in Y2 = 2.06x 1.06 = 2.18

Dividend in Y3 = 2.18 x 1.04 = 2.27

Dividend after year 3 = (2.27 x 1.05) / (0.12 - 0.05) = $34.06

Now, find the present value of these dividends :2.06 / 1.12 + 2.18 / 1.12² + 2.27 / 1.12³ + 34.06 / 1.12³ = $29.44

To learn more about how to determine intrinsic value, please check: brainly.com/question/15710204

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The expenses that Ryan can deduct for the business trips he had is calculated by summing up the expenses he had with regards to gasoline and the depreciation.

Cost of gasoline = (3,760 miles)($1,590/18,800 miles) = $318

Cost of depreciation = $4,800

Adding the costs will give us an answer of $5118.

<span>Answer: $5,118</span>

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Grace Co. had a Chinese yuan payable resulting from imports from China and a Mexican peso receivable resulting from exports to M
bogdanovich [222]

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Possible options:

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3 years ago
Shirts are made in a process with two resources. The first resource has a capacity of 35 shirts per hour. The capacity of the se
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Total labor content is 4.2143 min per shirt.

<h3>What do you mean by labor content?</h3>

The sum of all the process stages' individual times is known as the total labor content. For instance, if a procedure has two steps that each take 20 seconds, the total labor time is 40 seconds. Cycle time minus processing time is the definition of idle time.

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Time taken per shirt at resource 1=60 / 35=1.7143 minutes

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Time taken per shirt at resource 2=60 / 24=2.5 minutes

Therefore,

Total labor content = Time taken per shirt at resource 1+ Time taken per shirt at resource 2=1.7143+2.5=4.2143 minutes per shirt

Disclaimer

Shirts are made in a process with two resources. There is one worker in eachresource. The first resource has a capacity of 35 shirts per hour. The capacity of thesecond resource is 24 shirts per hour. Demand for this process is 20 shirts per hour. What is the total labor content in a shirt? Provide your answer in minutes per shirt.

Learn more about labor content here

brainly.com/question/28059667

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