If the required return on Computech is 18% the value of the stock in today's calculation is $11.77
<h3>What is the growth rate of a stock?</h3>
This is the percentage change of the stock based on the annualized growth rate over a period of time.
D3 = $0.75
D4 = 0.75 x 1.49 = $1.1175
D5 = 1.1175 x 1.49 = $1.665075
D6 = $1.665075 x 1.10 = $1.8315825
At a growth rate of 10 percent
1.8315825/0.18-0.10
= $
= 0.456473 + 0.576394 + 0.7278196 + 10.0075198
= $11.77
The value of this stock today is $11.77
Read more on stocks here: brainly.com/question/25818989
Answer:
Option (C) is correct.
Explanation:
EBIT = Sales revenues - Depreciation - Other operating costs
= $39,500 - $10,000 - $17,000
= $12,500
EBT/PBT = EBIT - Interest expense
= $12,500 - $4,000
= $8,500
PAT = EBT - Tax rate
= $8,500 - 35% of $8,500
= $8,500 - $2,975
= $5,525
CFAT = PAT + Depreciation
= $5,525 + $10,000
= $15,525
Therefore, the Year 1 cash flow is $15,525.
30 times 80 equal 2400.then 2400 divide by 100 equal 24.now there's your answer.
When a bond is trading at a premium, then the coupon rate is higher than the current yield and the yield to maturity.
<h3>How does a bond trade at premium?</h3>
For a bond to trade at premium, the coupon rate would have to be higher than the yield to maturity and the current yield.
Such a bond would trade at premium because the present value of the bond would be more than the par value thanks to the coupon being larger than the discount rate which is the yield to maturity.
Find out more on the yield to maturity at brainly.com/question/14012047.
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