Answer:You are so right I can't learn anything either Good day
Explanation:YOU CHOOSE THE SMARTEST
I guess the correct answer is $32.14
Zeta Corporation just paid a $2.00 dividend. Analysts believe that Zeta Corporation’s dividend will grow by 20% next year, and then settle into a constant growth regime at 5% per year into the future. If investors assign a required rate of return of 12% to Zeta’s stock, the stock sell for today is $32.14.
Answer:
According to F.A. Hayek, the fundamental problem facing every society is how to use limited resources in the most optimal way possible.
Explanation:
To Hayek, this problem could not be fully solved by any society, but the best a society could do is to rely on the price system, only possible under a free market, to signal which uses were more optimal than others.
This is also the reason why F.A. Hayek, along with fellow Austrian economists Ludwing Von Mises, believe that socialism could not work: socialism, according to Hayek and Mises, destroyes the price system, and without it, society has no rational way to allocate resources in an optimal way.
Answer:
B) Demand for concert decreases. As a result of the shift, ticket price decreases.
Explanation:
A shift in demand that is as a result of other factors except for price results in a shift of demand. A reduction of price as a result of the financial crises will lead to a shift of demand to the left.
Demand for cinema tickets will reduce at all price level.
Referring to the attached diagram the demand shift will result in lower quantity demanded from Q to Q2.
Also there is a reduction of equillibrum price from P to P2.
Answer:
The answer is:
A. Find the detailed calculation in the explanation section.
B. $6.33
C. $145.59/share
Explanation:
A.
Current dividend paid is $1.21
Growth rate for the next 5 years is 16 percent.
Dividend per share in Year 1 = $1.40 per share [$1.21 x 1.16]
Dividend per share in Year 2 = $1. 62 per share [$1.40 x 1.16]
Dividend per share in Year 3 = $1.88 per share [$1.62 x 1.16]
Dividend per share in Year 4 = $2.18 per share [$1.88 x 1.16]
Dividend per share in Year 5 = $2.53 per share [$2.18 x 1.16]
B.
Earnings per share (EPS) in Year 5 = Dividend per share in year 5 / Pay-out Ratio
$2.53/0.4
=$6.33
C.
Target stock price in five years = EPS in Year 5 x Benchmark P/E Ratio
= $6.33 per share x 23times
= $145.59/share
