Answer:
answer is A) $206 B) $61.31
Explanation:
to calculate price of the stock at zero we use dividend discount model formula
P0= D(1+G)/(r-g)
10(1.03)/(0.08-0.03)
$206
b) The dividend is said to be 2% of the free cash flow therefore can be calculated as $10*0.2=$2 per share
then calculate divide growth rates
D1=2*1.3 =2.6
D2=2*(1.3)(1.3)=3.38
D3 = 2*(1.3)(1.3)(1.3)=4.394
Claculate the discount rate using CAPM according to given information
R= 0.2+ 1.5(0.08-0.02)
= 0.11/11%
Use the dividend discount model to calculate the price of the stock
P0= 2.6/1.11+3.38/1.3²+4.394*(1.05)/(0.11-0.05)
2.342+2.743+56.225
=$61.31
Answer:
true
Explanation:
inflation effects every aspect of the economy
Answer:
Your correct answer ia A. debit to purchases
Explanation:
PLEASE MARK BRAINLIEST!!!
Answer: HI there I think that I can help you!!!
6.14%
Explanation: Here is how I did it :)
The offered investment has a nominal rate (N) of 6% compounded quarterly (n=4 times a year). The effective rate of return (R) is obtained by:
The effective rate of return that you will earn from this investment is 6.14%.
*Note that the amount invested is not relevant when determining the effective rate of return, which means that the rate would be the same for any amount.
Answer:
stock price is below $50
Explanation:
given data
price of a stock = $64
strike price = $60
option price = $10
solution
we know here that stock sell for $60 and pay for $10
so that here price of stock is
stock price = $60 - $ 10
stock price = $50
and net profit will be
net profit = $10 - $10
net profit = 0
so that we can say stock price is less than $50 for trader for making profit 0 or greater than 0.
so price will be below than $50
