The price of any security is nothing but the PV of Cash flows that are discounted at the required rate of Ret(Ke )Price = D1 / [ Ke - g ] = $ 1.5 / [ 16 % - 3 % ] = $ 1.5 / [ 13 % ] = $ 11.54.So, the Price of Stock today is $ 11.54.
The dividend rate of growth is the annualized share rate of growth that a selected stock's dividend undergoes over an amount of time. several mature firms ask to extend the dividends paid to their investors on a daily basis. Knowing the dividend growth rate may be a key input for stock valuation models identified as dividend discount models.
Being ready to calculate the dividend growth rate is important for the victimization of the dividend discount model. The dividend discount model is a kind of security-pricing model. The dividend discount model assumes that the calculable future dividends–discounted by the surplus of internal growth over the company's estimated dividend growth rate–determine a given stock's price.
If the dividend discount model procedure ends up in the next variety than the current price of a company’s shares, the model considers the stock undervalued. Investors who use the dividend discount model believe that by estimating the expectation of money flow within the future, they'll realize the intrinsic value of a specific stock.
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Answer & Explanation:
1). PROFITABILITY: Every entrepreneur wants to get and stay profitable. This is a fundamental business goal.
2). EXCELLENT CUSTOMER SERVICE: A customer is seen as the king as without him there is no business. Excellent customer service is a skill and an objective of every enterprenuer.
3). EMPLOYEE ATTRACTION AND RETENTION: A low staff turnover is important for a business as it helps an entrepreneur stay in business.
4). SUSTAINABLE GROWTH: Going concern of a business is an important objective to an enterprenuer.
5). ALIGNING MARKETING AND SALES: Marketing and sales translates to income for a business as its activities generates revenue and keeps the business afloat.
Answer:
D.
Explanation:
Firstly, we need to keep in mind when it comes to cost of capital (debt or equity) is that it have to be incremental cost. Use bond yield to maturity rather than other yield to estimate cost of debt.
Let go through each of answer option one by one:
a. is based on the current yield to maturity of the company's outstanding bonds. => include both old bonds and recently-issue bonds => not incremental cost => False
b. is equal to the coupon rate on the latest bonds issued by the company. => Coupon rate is not relevant => Fasle
c. is equivalent to the average current yield on all of a company's outstanding bonds. => Current yield is not relevant => Fasle
d. is based on the original yield to maturity on the latest bonds issued by a company. => Meet all requirement => True
Answer:
Convenience checks: consumers use these to reduce their available credit in exchange for cash.
Installment loan: consumers make recurring fixed payments.
Introductory interest free: consumers can enjoy a set period of zero interest credit.
Revolving credit: consumers borrow an amount that they don’t have to pay off by a specific date.
Explanation:
In Business, credit can be defined as money or a loan facility agreed upon by a lender and a borrower, who is obligated to repay the lender at a specified date mostly with interest depending on the terms and conditions.
Credit generally decreases assets or increases liabilities and equity on the balance sheet of an organization.
In a SWOT stands for: Strength, Weakness, Opportunity and Threat. SWO are internal factors while T is an external factor. So if you look at your choices, products, customers and employees are internal and only one is external, which is Competing companies.
The answer is C.
