Answer:
yes
Explanation:
they are both professionals and either of their opinions/ suggestions would have been good, but if they both agree it's even better
Answer:
$1.3794
Explanation:
The computation of the projected dividend for the coming year is shown below:
Last year dividend paid = Do
Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32
Dividend in Year 2 (D2) = Do ( 1+g)^2 = Do × 1.32^2
Dividend in Year 3 (D3) = Do ( 1+g)^3 = Do × 1.32^3
Dividend in year 4 , (D4) = D3 × (1+g) = Do × 1.32^3 × 1.22
Now the price at year 4 is
P4 = D4 × (1+g) ÷ ( R-g )
= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )
= Do × 100.08
Use Gordon Growth Model
The Current Price of Stock is
= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4
$78 = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)
$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )
Do = $1.045
Now
Projected Dividend for Year 1 is
= Do × 1.32
= $1.045 × 1.32
= $1.3794
Answer:
29.37%
Explanation:
Rate of return = Average annual income/Average initial investment
Average annual income = $3,700
Average initial investment = (I+s)/2
Average initial investment = (25,200+0)/2
Average initial investment = $12,600
Rate of return = $3,700/$12,600
Rate of return = 0.2936508
Rate of return = 29.37%
Answer:
Trend- % change in sales = 34.64%
Explanation:
<em>Trend analysis entails determining the performance of a business over time by comparing its performance data from one period to another. The aim of trend analysis is to identify the behavior of a set of ratios over a period of time by comparing them across different years.</em>
To determine the trend for a particular data, we use the formula below
% Change in variable =
(Current year figure - Previous year figure)/Previous year figure × 100
DATA
Current year figure for sales (2017) - 450,000
Previous year figure for sale (2016) - 688,500
% change in sales = (450,000 -688,500)/688,500 × 100 = 34.64%
% change in sales = 34.64%
This implies that the company made sales in 2017 which is 34.64% less than that made in 2016
I will get to work on your questions right now!
