Answer:
B) $26.30
Explanation:
To determine an investor's valuation of the stock we must calculate the present value of next year's dividend and selling price:
present value = [dividend / (1 + rate)] + [selling price / (1 + rate)]
present value = [$0.24 / (1 + 15%)] + [$30 / (1 + 15%)] = $0.21 + $26.09 = $26.30
The answer to the question is because the effort to visit the legislators are too great.
Unfortunately, even though the audience members support your perspective, often times, people are reluctant to follow through on the actions needed to make the change. This is a common issue found in various parts of society – from your work life to your personal relationships.
It is false that the market rate is used to calculate the actual cash payments made to bondholders rather it is the economic price for goods and services that is offered for them in free market or market place. It is also called a going rate, the market value or market price are equal only under conditions of market equilibrium and rational expectation.
