Answer:
$59.36
Explanation:
Given that
Dividend per share = $1.30
Growth rate for next 3 years is 15%
Now
Dividend for year 1 is
= Dividend per share × (1 + growth rate)
= $1.30 × (1 + 0.15)
= $1.495
For dividend for year 2 is
= Dividend for year 1 × (1 + growth rate)
= $1.495 × (1 + 0.15)
= $1.719
For dividend for year 3 is
= Dividend for year 2 × (1 + growth rate)
= $1.719 × ( 1 + 0.15)
= $1.977
And,
Subsequent Growth rate = g2 = 5%
Now
Dividend for year 4 is
= Dividend for year 2 × (1 + g2)
= $1.977 × (1 + 0.05)
= $2.076
Now
As per Gordon's Growth Rate Model
Price at year 3 is
= Dividend for year 4 ÷ (required rate of return - g2)
= $2.076 ÷ (0.08 - 0.05)
= $69.2
So, Value of the Stock is
= Dividend for year 1 ÷ (1 + required rate of return ) + Dividend for year 2 ÷ (1 + required rate of return)^2 + Dividend for year 3 ÷ (1 + required rate of return)^3 + Price at year 3 ÷ (1 + required rate of return)^3
= $1.495 ÷ (1+0.08) + $1.719 ÷ (1+0.08)^2 + $1.977 ÷ (1+0.08)^3 + $69.2 (1 + 0.08)^3
= $59.36
Would you mind giving us the status(of the delivery,that is)of glossy paper,which we ordered
Answer:
The answer is 6.151%
Explanation:
The weighted average cost of capital (WACC) of the project is also the internal rate of return (IRR). The IRR formula is calculated by equating the sum of the present value of future cash flow less the initial investment to zero.
Answer:
A) Roasters delivers the goods to Speedy
Explanation:
Risk of loss under the law of contracts is used to determine which party should bear the burden of risk for damage occurring to goods after the sale has been completed, but before delivery has occurred. This is normally used after the contract is formed but before buyer receives goods, something bad happens.
- The breaching rule applies risk of loss on the seller if at the time of delivery, the goods show up broken.
- Risk of loss shifts from seller to buyer at the time that seller completes its delivery obligations
- For a destination contract, then risk of loss is on the seller
- For a delivery contract, then risk of loss is on the seller
- if the seller is a merchant, then the risk of loss shifts to the buyer upon buyer's "receipt" of the goods. If the buyer never takes possession, then the seller still has the risk of loss
The answer would be that the answer is true
