Answer:
The most you should pay for this stock is 126.89
Explanation:
The dividend in years 1 – 3 will grow at 12% and then at 5% forever.
We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).
We used our calculators to find the PV of each year at the 8% discount rate. Finally we will add them all together to get the final answer.
We find the future dividends using g =12%
Dividend in year 0 --->
Dividend in year 1 ---> 3.36
Dividend in year 2 ---> 3.76
Dividend in year 3 ---> 4.21
Dividend in year 4 ---> 4.43
Now we will calculate the present value of the future dividends using r = 8%
Stock Value assuming constant growth rate = 147.52 --(a)
PV in year 1 ---> 3.11
PV in year 2 ---> 3.23
PV in year 3 ---> 120.45 --(discounting (a))
= 120.45 + 3.23 + 3.11
= 126.89
Step 1: Identify the decision that needs to be made. ...
Step 2: Gather relevant information. ...
Step 3: Identify alternative solutions. ...
Step 4: Weigh the evidence. ...
Step 5: Choose among the alternatives. ...
Step 6: Take action. ...
Step 7: Review your decision and its impact (both good and bad)
If he must pay the dues. Hanson has a(n) <u>agency </u>shop.
<h3>What is agency shop?</h3>
An agency shop can be defined as a shop in which the employer may decide to recruit a person that is member of the union or a person that is not part of the union.
In this agency shop it is not mandatory for an employee which not member of the union to join the union but the employee must always pay the dues.
Therefore Hanson has a(n) <u>agency </u>shop.
Learn more about agency shop here:brainly.com/question/1285850
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Answer:
1 month
Explanation:
The last coupon paid by this bond was made on August 1, 2018, and the transaction is made on September 1, 2018, therefore, only 1 month has passed since the last coupon was paid. Therefore, accrued interests will be charged for only 1 month.
When bonds are sold including accrued interests, they are said to be sold at their dirty price.
