Answer:
$259.34
Explanation:
the value of the stock can be determined using the two stage dividend discount model.
In the first stage, the present value would be determined using a discount rate of 18%.
In the second stage, the present value would be determined using a discount rate of 6%.
Values from the first and second stage would be added together to determine the value of the stock
First stage
Present value in year 1 = ($3.2 x 1.18) / 1.087 = $3.47
Present value in year 2 = ($3.2 x 1.18²) / 1.087² = $3.77
Present value in year 3 = ($3.2 x 1.18³) / 1.087³ = $4.09
Present value in year 4 = ($3.2 x 1.18^4) / 1.087^4 = $4.44
Second stage
($3.2 x 1.18^4 x 1.06) / (0.087 - 0.06) = 243.57
Value of the stock = $3.47 + $3.77 + $4.09 + $4.44 + 243.57 = $259.34
If a stock currently sells for $49. tThe amount of the dividend that was just paid is $1.77.
A inventory is a fashionable term used to describe the ownership certificate of any business enterprise. A percentage, on the other hand, refers to the inventory certificate of a selected organization. maintaining a particular organization's percentage makes you a shareholder.
A coins dividend is the distribution of budget or cash paid to stockholders generally as a part of the employer's present day income or accrued income. cash dividends are paid at once in money, as opposed to being paid as a inventory dividend or other form of cost.
Dividend yield=Annual Dividend next year/Current price
Annual Dividend next year=(49*3.8%)=$1.862
Hene, the dividend just paid = Annual Dividend next year * Present value of discounting factor( 5.1%, time period)
⇒$1.862/1.051
⇒$1.77 (Approx)
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Answer: cost ratio
Explanation: The terms of trade must be higher (graphically to the right) of a nation's own production cost ratio. The production cost ratio allows small-scale manufacturers to determine their cost more accurately as well as control known cost parameters and is a method that can be adapted and applied to any business.
In a multi-product manufacturing firm, the production cost ratio is necessary for accurate compilation and allocation of production costs to each category of product especially when both the Production Time and the Production Runs are not the same and/or when fixed labor, overhead and other costs are drawn from the same pool. When the ratio is not applied results in a skewed allocation of production costs. This in turn can affect the business as it becomes difficult to ascertain the products whose production are more profitable to the business.
CELL is the smallest level.........
