Answer:
The price of the stock today will be $66.19
Explanation:
To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,
P0 = D1 / r - g
We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.
P8 = 14.25 * (1+0.06) / (0.14 - 0.06)
P8 = $188.8125
The price of the stock today will be,
P0 = 188.8125 / (1+0.14)^8
P0 = $66.189 rounded off to $66.19
Answer:
Project Scope Management is the applicable knowledge area.
Explanation:
Project Management involves the use of knowledge skills, tools, techniques to meet the requirement of the project. Other knowledge areas in Project Management include;
- Project Procurement Management
- Project Integration Management
- Project Communication Management
- Project Human Resource Management
- Project Quality Management
- Project Stakeholder Management
Project Scope Management involves explaining what the project will entail. It ensures people have a clear understanding of what the project is about.
Answer:
The correct answer is B: $5,600
Explanation:
Giving the following information:
Schager Company purchased a computer system for $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000.
Double-declining balance method= Netbook value* (2/useful life in years)
Year 1:
Double-declining balance method= (40000-5000)*(2/10)= $7000
Year 2:
Double-declining balance method= (35000-7000)*0.20= $5,600
Decrease the supply of credit ...
Answer:
The correct answer is $2.43.
Explanation:
The annual dividend is $1.90.
The expected rate of return is 12%.
The growth rate is 3.5%.
The current stock price will be
=
=
=
=$22.35
The stock price at year 3 will be
=
=
=
=$24.78
The capital gain will be
=stock price at year 3-current stock price
=$24.78-$22.35
=$2.43
