Answer:
The expected price of the stock is $122.03
Explanation:
To calculate the expected price of the stock at the end of the year or at Year 1, we first need to determine the required rate of return on the stock. We will use the CAPM equation to calculate the required rate of return.
The required rate of return is calculated as,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.05 + 1 * (0.14 - 0.05)
r = 0.14
We already have the price of the stock today, the D1 and the required rate of return. Using the constant dividend growth model of DDM, we calculate the growth rate in dividends to be,
P0 = D1 / (r - g)
115 = 9 / (0.14 - g)
115 * (0.14 - g) = 9
16.1 - 115g = 9
16.1 - 9 = 115g
7.1 / 115 = g
g = 0.0617 or 6.17%
Using the same formula and replacing D1 with D2, we can calculate the price of the stock at the end of the year or at start of Year 1.
P1 = 9 * (1+0.0617) / (0.14 - 0.0617)
P1 = $122.03
Answer:make a list of responsibilities and tasks that need to be accomplished in the business
Explanation:
Well a bond is a government loan where they take ur money and pay u back with interest usually low interest tho
A professional email based on the given scenario would sound like the following:
<em>To: Assistant</em>
<em>From: Manager</em>
<em>Subject: Flight and Hotel Booking for Chicago</em>
<em>Date: January 28, 2022</em>
<em />
<em>Hi,</em>
<em />
<em>Please book my flight and hotel reservations for the upcoming conference in Chicago from February 7, 8:00 am to February 11, 2022 (5:00 pm).</em>
<em />
<em>Do not forget the company's favorite airline and hotel for the bookings.</em>
<em />
<em>Regards,</em>
<em />
<em>Tony</em>
Thus, while the email sounds professional, it may be more conversational than formal since it is a workplace request.
Learn more about writing workplace emails to subordinates at brainly.com/question/14236855
Answer:
Life is hard because life needs to know if you're willing to fight. Willing to be strong when life is 'hard'. The second that you prove yourself with one challenge, another challenge show's up. Don't let life get you down. Be grateful for all you have. Live as if it's your last day. :>
Explanation:
