Answer:
The share is worth $5.68 today.
Explanation:
The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.
The following is the formula for the price of the stock today,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + Terminal value / (1+r)^n
The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes constant, like in this case, the terminal value is calculated as follows,
Terminal value = Dn * (1+g) / r - g
Where,
- g is the Constant growth rate in dividends
So, the price of this stock today is,
P0 = 0.65 / (1+0.145) + 0.70 / (1+0.145)^2 + 0.75 / (1+0.145)^3 +
((0.75 * (1+0.02) / (0.145 - 0.02)) / (1+0.145)^3
P0 = $5.678 rounded off to $5.68
Answer:
language barriers
Explanation:
Since in the question, it is mentioned that there is excessive use of jargon which results in difficulty to understand what the speaker wants to communicate and due to which it becomes harder to her to follow his presentation.
Here jargon means unique words which unable to understand by the group of people
Therefore this is a language barrier during the seminar
A fair value option is the alternative for a business to record its financial instruments at the fair values. Liabilities are company's financial debts or obligations that arise in the course of business operations. They may be long term or short term. In this case, if the fair value of the liability decreases, the firm should respond by crediting the unrealized Holding Gain/loss in the income account.
Answer:
The correct answer is letter "E": How much cash should the firm keep in reserve?
Explanation:
Working capital decisions imply working in capital cycles. They take into consideration interest rates, debtors management, and the company's financing in the short run. The working capital decisions also ensure that the organizations have enough cash to pay its bills and determine how much of the cash flow should be stored in the firm's reserve.
Answer:
Economic costs include both explicit costs and implicit costs.
Explanation:
- In economics, costs can be in the form of explicit and implicit as implicit costs are opportunity costs and are opportunities for engaging in business. While the explicit costs are accounting costs which are involved in the production of raw matter, wages etc.
