Answer: A. She believes the company has become riskier, and therefore increases her required rate of return for the stock.
Explanation:
The formula for the Constant dividend growth model of valuing stock is:
<em>= Next dividend / (Required return - growth rate)</em>
From the formula above, one can tell that if the required return is higher, it would result in a lower value for stock because it would divide the numerator more.
If the analyst believes that the company is riskier and increases the required return, the value would therefore reduce if other measures are kept constant.
Answer:
A <u>consumer good
</u> is a product intended for final use by a consumer.
Explanation:
Consumer good: a good intended for final use by consumers rather than by businesses
Please see attachment for full question
Answer and Explanation:
See attachment for amortization schedule prepared with explanation
Answer:
share price = 65.71 per share
Explanation:
given data
first structure consists = 365,000 shares
second structure consists = 330,000 shares
debt in the second structure = $2.30 million
solution
we get here difference between shares in first structure to second structure that is
difference between shares = 365,000 - 330,000
difference between shares = 35,000
so when $2.30 million of debt we can decrease shares by 35,000
and
share price will be
share price =
share price = 65.71 per share
Answer:
Dutch Auction
Explanation:
The type of auction that is being described is called a Dutch Auction. Like mentioned in the question this is a type of auction in which the buyer initiates the process by submitting a description of the desired product or service, and when selling a high asking price is set and lowered until a participant accepts or the reserve price is met.