Answer:
$27.33
Explanation:
For computing the one share of the common stock after six years from now first, we have to determine the price of the common stock which is shown below
Price of the common stock = Next year dividend ÷ (Required rate of return - growth rate)
= $2.05 ÷ (11.2% - 2.50%)
= $23.56
The growth rate is
= ($2.05 - $2) ÷ ($2)
= 2.50%
Now the one share of the common stock after six years is
= $2 × 1.025^7 ÷ (11.2% - 2.50%)
= 2.3773715073 ÷ 8.7%
= $27.33
The answer is D because when u give power to other people for them to make decisions your offering transference. Your transferring decisions to others.<span />
Answer:
PV= $17,228.23
Explanation:
Giving the following information:
FV= $20,000.
The number of years= 4.
interest rate= 3.8%.
To calculate the initial investment required to reach the objective, we need to use the following formula:
PV= FV/(1+i)^n
PV= 20,000/(1.038^4)
PV= $17,228.23
