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miskamm [114]
4 years ago
13

Synovec Corp., which just paid $1.0 dividends per share, is experiencing rapid growth. Dividends are expected to grow at 30 perc

ent per year during the next three years, 18 percent over the following year, and then 8 percent per year indefinitely. The appropriate discount rate is 14%, and the stock currently sells for $32 per share. Calculate the intrinsic value of this stock.
Business
1 answer:
Valentin [98]4 years ago
7 0

Answer:

$54.44

Explanation:

This is the stock of the company that is expected to have multiple growth stages.

In the first phase, company is expted to grow 30% per year, so dividend paid from Year 1 to Year 3 are D_1 = 1.0 x (1 + 30%); D_2 = 1.0 x (1 + 30%)^2 and D_3 = 1.0 x (1 + 30%)^3 respectively.

Dividend in Year 4 is D_4 = D_3 x (1 + 18%).

Dividend in Year 5 is D_5 = D_4 x (1 + 8%).

Terminal value in at Year 4 is T_4 = D_5/(Discount rate - Long-tern growth)

Value of this stock is discounted relevant cashflow from Year 1 to Year 4 (include terminal value).

Putting all the number together, we have intrinsic value of the stock = $54.44

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What form of business defamation arises when an unfair and untrue oral statement is made about a competitor?
vivado [14]

Answer:

Business slander

Explanation:

Business slander - it is considered to be business defamation when one party used unfair statements toward another competitive partner. This kind of statement is considered to be objectionable when parties comment or try to damage the competitor's reputation for personal interest.

Slander in business gives the right to person to file a civil action against the false statement by another person.

8 0
3 years ago
What is a pain point of operations as a Freelancer that Fiverr helps alleviate?
kicyunya [14]

The pain point of operations as a Freelancer that Fiverr helps alleviate is financial constraint and looking or lack of job.

<h3>What are financial constrain?</h3>

This is known to be when a person or firm lacks money to run their basic activities.

Note that Fiverr has eliminate the stress of looking for a job and as such, The pain point of operations as a Freelancer that Fiverr helps alleviate is financial constraint and looking or lack of job.

Learn more about financial constraint from

brainly.com/question/14140096

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5 0
2 years ago
Find an example of a company's aggregate planning strategy. You can use the strategy from the firm where you currently work or w
galina1969 [7]

Explanation:

An aggregate planning strategy can be defined as the implementation of new strategic action plans used in a company whose objective is to balance supply and demand through the implementation of material resources, sales, promotions, products, etc.

This planning occurs in the short term, and is usually carried out when a company has the capacity to meet a certain market offer, such as consumer demand for an innovative product.

Aggregated planning is a good strategy when the company considers maximizing its profits, so in order to achieve the expected result, market demand must be thoroughly analyzed, the company's operational capacity, risks, budget and other essential variables.

A soft drink factory for example can carry out a promotional campaign in the style buy 1 light 2 to increase its demand, therefore you must be aware that your productive force will be able to meet the demand, in addition to analyzing the strategic results in order to ascertain the effectiveness planning.

3 0
4 years ago
Which of the following is NOT a component of the production process?
Semmy [17]

Answer:

Services.

Explanation:

You don't produce services, factorlike.

4 0
3 years ago
J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2009. The only difference between accou
notka56 [123]

Answer:

Income Tax Payable = 300,000 x 40% = 120,000

Deferred Tax:

300,000 - 291,000 = 9000

9,000 / 3 = 3,000

The appropriate journal entry would be:

Account Title                                      Dr                    Cr

Income Tax Expense                     117,000

Deferred Tax Asset                         3,000

   Income Tax Payable                                           120,000

5 0
3 years ago
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