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Leto [7]
2 years ago
13

Problem 7-28 Nonconstant Growth (LO2) Planned Obsolescence has a product that will be in vogue for 3 years, at which point the f

irm will close up shop and liquidate the assets. As a result, forecast dividends are DIV1 = $12.00, DIV 2 = $12.50, and DIV 3 = $28.00. What is the stock price if the discount rate is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price
Business
1 answer:
LuckyWell [14K]2 years ago
6 0

Answer:

Po = <u>D1</u>        +     <u>D2</u>    +        <u> D3</u>

       (1 + Ke)     (1 + Ke)2   (1 + Ke)3                                                                                                                                          

Po = <u>$12</u> +   <u>$12.50</u> +      <u>$28 </u>

     (1 + 0.1)    (1 + 0.1)2   (1 + 0.1)3

Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>

        1.1       (1.1)2        (1.1)3

Po = $10.91 + $10.33 + $21.04

Po = $42.28  

                                                                                   

Explanation:                                                                      

The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.  

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If sales are $1,150,000 in 2016 and this represents a 15% increase over sales in 2015, what were sales in 2015?
frutty [35]
Take $1,150,000 multiply by 15% to get the money increase between 1 years which is $172500 then take $1,150,000 subtract by $172,500 to get the final sales in 2015 which is $977,500
5 0
3 years ago
With a deadline approaching, all seven members of Sharon's product development team were working round-the-clock and still the w
Dvinal [7]

Answer:

Dissimilar mental model

Explanation:

Communication is simply the interaction with two or more people. It is the passing of information. It involves the transfer and understanding of meaning. In communication, members of the organization shows their satisfaction and frustrations.

mental models simply represent a described or support comprehension as it keep info about the current situation available in memory. It guide behavior and allow prediction.

7 0
2 years ago
An increase in the current account deficit will place _______ pressure on the home currency value, other things equal.
Sindrei [870]

When there is an increase in the deficit of the current account, the pressure on the home currency value all things equal would be a downward pressure.

<h3>What happens when there is a current account deficit?</h3>

A current account deficit means that the country is earning less from exporting goods to other countries than it is losing from importing from other nations.

What this means is that more money is flowing out of the country than the money that is coming in. What this leads to a loss in currency value because it points to less demand for the home currency.

This is because the deficit would place a downward pressure on the local currency. On the upside, this decrease in currency value might spur exports which would lead to a better current account balance.

In conclusion, there will be downward pressure.

Find out more on the current account at brainly.com/question/22333470

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4 0
1 year ago
A A rocket shoots up 123 meter<br>i. What is its initial velocity -​
oee [108]

Answer:

Initial Velocity= 49 m/s

Time period= 5 secs

Explanation:

THIS IS THE COMPLETE QUESTION BELOW

A rocket shoots up 123 meters. What is it initial velocity?How long is it ascending

The initial velocity can be calculated using the expression below

u= √( 2gh)

Where g= Acceleration due to gravity= 98 m/s^2

h= height

Substitute the values we have

u = √(2*9.8*123)

u=√( 2410.8)

u = 49 m/s

the time period can be calculated as

(49/9.8)

= 5 sec

Hence time period is 5 secs

5 0
2 years ago
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Sauron [17]

Answer: Harrison will acknowledge a gain equal to the difference between his basis and the distribution . This is because he receives only money in the distribution and the amount transcend his basis in KH. He further allot his entire basis in KH to the basis in the money received resulting in $0 basis in KH after the distribution.

∴ <em>The capital gain will be $6000 i.e. (50000 - 44000) and $0 basis.</em>

4 0
2 years ago
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