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lora16 [44]
3 years ago
10

Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3

of $4. After year 3, dividends are expected to grow at the rate of 7% per year. An appropriate required return for the stock is 12%. Using the multistage DDM, the stock should be worth __________ today.
Business
1 answer:
Bezzdna [24]3 years ago
7 0

Answer:

$67.95

Explanation:

Dividends per year;

D1 =$2

D2 = $3

D3 = $4

D4 = D3(1+g)

g= growth rate = 7% or 0.07 as a decimal

D4 = 4*(1.07) = $4.28

Next, find PV of each dividend at 12% rate of return and sum them up;

Price= 2/ (1.12) + 3/(1.12^2) +4/ (1.12^3) + \frac{4.28/(0.12-0.07)}{1.12^{3} }

=1.7857 + 2.3916 + 2.8471 + 60.9284

= 67.9528

Therefore, the stock should be worth $67.95 today

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It seems as if consolidated net income is always less than the sum of the parent’s and subsidiary's separately calculated net in
BARSIC [14]

Answer:

<h2>Consolidated net income is the sum of net income of the parent company excluding any income from subsidiaries recognized in its individual financial statements plus net income of its subsidiaries determined after excluding unrealized gain in inventories, income from intra-group transactions, etc.</h2>
4 0
1 year ago
Resources that can be purchased in the amount needed and at the time of use are a. implicit resources. b. lumpy resources. c. pr
guajiro [1.7K]

Answer:

e. flexible resources.

Explanation:

Resources that can be purchased according to their necessity and at the desired quantity are known as flexible resources. While resources that need to be ordered regardless of the actual amount used are known as committed resources.

Therefore, if resources can be purchased in the amount needed and at the time of use, they are flexible resources.

4 0
3 years ago
Visit any retail store in your community and request a 20 minutes appointment to interview the owner or manager so that you can
Len [333]

The three objectives in the retail store are:

  • Excellent Customer Service.
  • Boast Brand Awareness.
  • Create or form Brand Loyalty.

<h3>What is average revenue?</h3>

Average revenue is known to be the one that depicts how much revenue exist  per unit of the output.

Marginal revenue is one that connote the increase or boast up that is found in total revenue as it is said to be increasing from one output unit.

Note therefore, that if the three objectives in the retail store are meant, the store will have a lot of customers.

Learn more about  retail store from

brainly.com/question/13480978

#SPJ1

6 0
2 years ago
amazon’s efforts to offer customers the option to return or purchase items in the physical world is a decision that most closely
gulaghasi [49]

Amazon’s efforts to offer customers the option to return or purchase items in the physical world is a decision that most closely aligns with <u>Physical Evidence</u>.

This is because the retail marketing mix has seven elements.

These elements are usually known as the 7 Ps, including product, price, promotion, place, people, process, and physical evidence.

It is expected that the <u>Physical Evidence</u> should give the customers the sense of making a purchase.

This could be anything from collecting a physical receipt or having the opportunity to return a defective product.

The Physical Evidence gives the customers an impression of the value of what they purchase goods.

Hence, in this case, it is concluded that the correct answer is <u>Physical Evidence</u>.

Learn more here: brainly.com/question/15850455

7 0
2 years ago
11. Consider the Ganges Tours, Inc. financial statements below. Calculate the following ratios:a. Current ratio.b. Quick ratio.c
notsponge [240]

Answer:

a. 1.79

b. 0.78

c. 0.30

d. 0.43

Explanation:

a. The Current Ratio checks if the company can cover it's current  Liabilities with it's current assets. The formula is;

Current Ratio = Current Assets / Current Laibilities

= $305,800 / $170,000

= 1.79

b. The Quick Ratio is similar to the Current Ratio but it calculates if a company can cover it's Current Liabilities with it's liquid assets.

Quick Ratio = Current Assets - Inventory / Current Liabilities

= ($305,800 -$173,800) / $170,000

= 0.78

c. The Cash Ratio checks whether the company can pay it's current Liabilities with it's cash or cash equivalent (Treasury Securities, bank account etc) holdings. Formula is;

Cash Ratio = (Cash+Cash Equivalents) / Current Liabilities

= $50,600 / $170,000

= 0.30

d. Debt ratio shows just how much of the company's assets were acquired through the use of Debt Financing. It's formula is;

Debt Ratio = Current Liabilities + Long Term Liabilities / Total Asssets

= $170,000 +$316,000 / $1,131,800

= 0.43

6 0
2 years ago
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