Answer:
a. How far away is the horizon date?
IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2.
b. What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations.
to determine the horizon value we can use the Gordon growth formula:
stock price = future dividend / (required rate of return - constant growth rate)
Div₀ = $3.75
Div₁ = $4.6125
Div₂ = $5.673375
Div₃ = $6.97825125
since the terminal value is calculated for year 2, we must use Div₃ in our calculations:
stock price = $6.97825125 / (9% - 6%) = $232.61
c. What is the firm's intrinsic value today, P0? Round your answer to two decimal places. Do not round your intermediate calculations.
we have to calculate the present value of:
P₀ = $4.6125/1.09 + $5.673375/1.09² + $232.608375/1.09² = $4.2317 + $4.7752 + $195.7818 = $204.7887 ≈ $204.79
The answer is industry's structure/ organization's position in the industry
The fice forces model of porter will give some information about the company's position compared to other competitors within the same industry.
This information could be used by upper management to decide which resource allocation they need to choose in order to maintain company's profitability.
Answer
C. September 15
Explanation:
since the record date is September 15, She needs to have purchased the stock by September 15 in order to receive the dividend.
Answer:
C) differences in the way consumers see themselves and in the way they see products and services.
Explanation:
People from different cultures tend to think that everyone thinks similarly to them, but actually people from different cultures view themselves differently.
For example, Arab states are very warm and have a lot of sunshine, but if you try to sell bikinis you will probably go bankrupt before selling any because culturally Arab women use a lot of clothes even at the beach.
India is the country with the most cattle in the world, but they do not eat beef, so McDonald's probably had to change their recipe when they started operating there.
Interest paid to the share holder of a specific company that offers a dividend. (note: not all companies pay dividends).
