Cash flows to stakeholders of a firm include

You are an stock analyst hired to follow Jones Kenesyian Consulting (whose ticker is JK), the firm recently paid a dividend of $

Levart [38]

Answer:

Price of stock today = $45.58

Explanation:

<em>The price of a share can be calculated using the dividend valuation model </em>

<em>According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

Price=Do (1+g)/(k-g)

Do - dividend in the following year, K- requited rate of return , g- growth rate

Step 1 : PV of dividend from year 1 to 3

PV = D × (1+r)^-n

D- dividend payable in a particular year

r- required rate of return

n- year

Year PV of Dividend

1 2 × 1.1^1 × 1.12^(-1) = 1.96

2 2 × 1.1^2× 1.12^(-2) = 1.93

3 2 × 1.1^3 × 1.12^9-3)= 1.89

Step 2 : PV of dividend from year 4 to infinity

PV (in year 3 terms) of dividend= 2 × 1.1^3× 1.05/(0.12-0.05) = 55.90

PV in year 0 terms = 55.90 × 1.12^(-3) = 39.789

Total present Value = 1.96 +1.93 +1.89 + 39.789= 45.58

Price of stock today = $45.58

8 0

3 years ago

A divorced woman with 2 young children has a small trust fund that gives her $2,500 a year in income. She collects another $2,50

mezya [45]

Answer: No contribution can be made

Explanation:

The options to the question are:

a. No contribution can be made

b. A contribution can be made based only on the income received from the trust fund.

c. A contribution can be made based only on the alimony payments received

d. A contribution can be made based on both the income received from the trust fund and the alimony payments received

From the question, we are informed that a divorced woman with 2 young children has a small trust fund that gives her $2,500 a year in income and that she collects another $2,500 per year in alimony payments.

Based on the above analysis, the woman cannot make a contribution to an Individual Retirement Account this year.

6 0

3 years ago

The Foreign Corrupt Practices Act (FCPA) makes it illegal for US citizens to bribe high ranking foreign officials to get new bus

Gemiola [76]

G idk but keep yo head up i need these point aye give me 5 stars doe for takin my time n sharing my thoughts with u

4 0

3 years ago

In order to make sure that employees do not misuse equipment in a way that could harm personnel, assets, or the organization's l

kodGreya [7K]

Answer:

Acceptable

Explanation:

The acceptable use policy is also known as fair use policy or the acceptable usage policy. It is a document or set of rules that is applied by the owner or by the management of nay organization or company that restricts and prevents the use of many equipment and other tools and machinery which could harm other coworker, other assets of the company or the legal standing of the company. It limits or restricts the usage of certain equipment and provides guidelines on how the equipment should be used and when to use.

6 0

3 years ago

Which of the following will require a recalculation of weighted-average shares outstanding for all years presented?

FromTheMoon [43]

Answer:

The correct option is A, stock dividends and stock splits

Explanation:

Stock dividends refers to paying dividends by issuing more shares to shareholders instead of paying in cash which may be required to fund investment projects,since it increases the number of shares overall, it requires re-computation of weighted average number of shares.

Stock splits means splitting the current number of shares into multiples in order to reduce the price per share making it affordable to investors,hence the number of weighted average shares is also impacted.

8 0

3 years ago