Answer: $32.70
Explanation:
According to the dividend discount model, the value of the stock today is the present value of the dividends to be paid plus the present value of the value of the dividend from when the company starts maintaining a stable growth rate which in this question in year 2.
= (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))
Value at year 2 = Year 3 dividend / ( required return - growth rate)
= ( Year 2 dividend * (1 + g)) / ( required return - growth rate)
= (2.46* ( 1 + 0.039)) / ( 0.113 - 0.039)
= $34.54
Value today = (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))
= 3.15/1.113 + 2.46/1.113² + 34.54/1.113²
= 2.83 + 1.99 + 27.88
= $32.70
Answer:
Concord BEP: 400,000 units
Explanation:
Break Even Point (Units) = Fixed Cost / (Selling Price - Variable Cost) or
Break Even Point (Units) = Fixed Cost / Contribution Margin
Concord Break Even Point:
Contribution Margin Per Unit: (($980,000 - ($490,000 + $49,000)) / 49,000 = $9
Concord BEP: $360,000 / $9 = 400,000 units
Answer:
IN 1OYRS YOULL BE AT 100K IF UR SAVING
Explanation:
