Answer:
The correct answer is letter "D": can be used to compute a stock price at any point in time.
Explanation:
The Gordon Growth Model, also known as the Constant Dividend Growth Model, is used to measure the value of the stock at any point in time based on the projected future dividends of the stock. Investors and analysts are commonly used to compare the estimated value of the stock against the current market price. Analysts interpret the gap between the two prices as proof that the stock could be under or overvalued by the market.
Answer:
The correct word for the blank space is: strategic vision.
Explanation:
The strategic vision of a company outlines the path the organization should follow and the set of steps that are to be taken to reach the firm's objectives in the long term. Compared to the mission, the vision is in charge of answering the question of <em>what the impact of the organization's operations will be for the internal environment of the firm</em>.
The present value of the cash-flow stream if the interest rate is 6% is $323.03.
<h3>What is the interest rate?</h3>
The interest rate can be defined as the amount or the percentage that is being fixed or fluctuating depending upon the condition of the agreement. The interest is calculated on the amount that is being loaned or given to the individual or a company.
According to the given question, the interest rate is 6%
1st year $120
2nd year $320
3rd year $220
Now, by applying the formula for the present value:


= 113.20 + 284.96 + 184.87
= 323.03
The present value of the cash flow stream is $323.03
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12.0 years will take for these bonds to mature.
What is a coupon in bonds?
The term "coupon," which is also sometimes referred to as "coupon payment," refers to the annual interest rate that is paid on a bond from the date of issuance until maturity. It is described as being a percentage of the bond's face value. When discussing coupons, the coupon rate is frequently employed.
How does coupon rate affect bond price?
The price of bonds is significantly influenced by the coupon rate on a bond in comparison to current market interest rates. Bond prices increase when a coupon is more than the current interest rate; prices decrease when a coupon is lower.
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