Answer:
Kim's total profits on the three stocks at the end of the first day of trading is $2157.80
Explanation:
The closing day valuation of stocks needs to be compared with the prices at the IPOs opened that same day to ascertain whether or not a profit has been made.
The purchase price of IPOs =(750+370+260)*$24
=$33,120.00
Closing day valuation=($23.15*750+$27.43*370+$29.87*260)
=$35,277.8
0
The total profit on the day's transactions=$35,277.8
0-$33,120.00
=$2157.8
The total profits on the three stocks on first day is $2157.8
0
A solution that will help in the agency problem in terms of
publiclyminus – held corporations is by through having bonuses in the company
or organization that will be based on primarily the short term results that
they have acquired in the company.
Answer:
The price of the stock today is $40.39
Explanation:
The price of the stock today can be calculated using the constant growth model of the DDM approach. The constant model is used whenever the expected dividend is expected to grow at a constant rate forever. The formula for price today is,
P0 = D1 / r -g
Where we use D1 that is dividend expected for the next year to calculate price today. As the company will pay dividend in the year 5 that is D5, we will calculate the price using this model that will be price at Year 4 and dicount it back for 4 years to calculate the price today.
P0 = [4.8 / (0.111 - 0.033)] / (1+0.111)^4
P0 = $40.39
Answer:
Globalization of Production
Explanation:
IDG has taken benefit of globalization of production, where a company can when inserted in a global market, source its goods and services from any country has a better offer in quality and price. The company can choose around the globe the best provider for its needs (in this case the need to bottle and sell drink), maximizing in that way its revenue.