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
Generally, a firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.
<h3>What is an
asset deflation?</h3>
This refers to the general reduction in the value of firm's assets such as lands, homes, office, machine etc \.
Most time, the firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.
Therefore, the Option A is correct.
Read more about asset deflation
<em>brainly.com/question/25179281</em>
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Answer:
I think maybe B?
Explanation:
I am not sure so I think its b
The answer is psychological contract.
A broken psychological contract may occur when an employee believes that working extra would be naturally rewarded. This, however, may not be business policy. If the person is salaried, they may not be compensated for the extra hours worked.
Daily acts and remarks made in the workplace, as well as how they are interpreted by all parties involved, have an impact on the contract.
`
In other words, it is a promise developed via regular workplace encounters in which the organization learns what is expected of each employee.
Psychological contracts evolve and adapt to the organizational working culture over time. However, they are generally difficult to change and can differ across individual party members and whole organizations.
To know more about employer and employee relationship click here:
brainly.com/question/13400621
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APR formula = (Finance charges/total balance) x 365
Purchase price = $3,900
Downpayment = $1,000
Total financed = $2,900
Payments (36m) = $100.53
Total amount = $3,619.08
APR formula = (Finance charges/total balance) x 365
APR = ($3619.08/2900) x 365
APR = 4.5%
