Answer:
P0 = $33.25558633 rounded off to $33.26
Explanation:
The stock price today or the price per share today can be calculated using the discounted cash flow approach or the dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock. In the given scenario, the price of the stock will be calculated as follows,
P0 = D1 / (1+r) + D2 / (1+r)^2 + .... + Dn / (1+r)^n +
[ (Dn * (1+G) / (r - G)) / (1+r)^n }
Where,
- D1, D2 and so on will be calculated by applying the appropriate growth rates to D0 of $1.85
- r is the required rate of return
- G is the sustainable or constant growth rate
P0 = 1.85 * (1+0.24) / (1+0.14) + 1.85 * (1+0.24) * (1+0.18) / (1+0.14)^2 +
1.85 * (1+0.24) * (1+0.18) * (1+0.12) / (1+0.14)^3 +
[ (1.85 * (1+0.24) * (1+0.18) * (1+0.12) * (1+0.06) / (0.14 - 0.06)) / (1+0.14)^3 ]
P0 = $33.25558633 rounded off to $33.26
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Answer:
The sum of a tax and a product’s price
Explanation:
The tax final burden increases the price and is payed by consumer.
<span>A. It helps you to balance your risk across different types of investments</span>
Answer:
C. Infant-industry argument
Explanation:
The lobbyst is using the infant-industry argument because he is claiming that all that the emerging national industry needs is some temporary trade restrictions until it can develop enough to compete.
This argument is very commonly used against free trade, and is based on the belief that national industries should be allowed to grow in isolation before opening up the markets. The problem with this argument is what happens if the national industry remains uncompetitive even after a long period of trade restrictions.
