Answer:
For 100 shares, the mount that should be paid = $1766
Explanation:
We have to calculate the price of the stock in the 4th year because the investor cannot afford the stock in another 3 years.
Price of the stock = Do + g / ke - g
Dividend in current year = $1.2
Dividend after 1 year = 1.2 +2.5% (1.2)= 1.23
Dividend after 2 years = 1.23 + 2.5%(1.23) = 1.26075
Dividend after 3 years = 1.26075 + 2.5%(1.26) = 1.29227
Price in 4th year = 1.29227 + 2.5% / (0.10 - 0.025)
=1.29227 + 2.5%(1.29227)/0.075
= 17.66
Therefore, for 100 shares, the mount that should be paid = 17.66 * 100 = $1766
B.
Customers will have a variety of flavors to choose from
so she wants to make sure all her correspondence with the authors is professional and looks formal. charlotte has added a citation to the documents on which she is working. in the process of her doing so, word has added the source that she introduced to a ____ of sources, which is now available to any document created using the same user account on that computer.
Answer:
7.52%
Explanation:
First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:
=rate(nper,pmt,-pv,fv)
the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times
pmt is the amount of annual coupon payment which is $106
pv is the current price of the bond at $860
fv is the face value of the bond at $1000
=rate(20,106,-860,1000)=12.54%
The yield to maturity on the new issue is 12.54% as well
after-tax cost of debt=pretax cost of debt*(1-t)
pretax cost of debt is yield to maturity of 12.54%
t is the tax rate of 40% or 0.4
after-tax cost of debt=12.54%
*(1-0.4)=7.52%
The maturity stage of the product life cycle is the longest stage, where sales peak and profit margins narrow. in this stage, new users or new uses may be added to extend the product life.
Introduction, growth, maturity, and decline are the four stages that make up a product's life cycle. Professionals in management and marketing use product life cycles to assist them to decide on advertising schedules, price points, expanding into new product markets, redesigning packaging, and more.
When sales reach their maturity stage, they start to slow down after a period of strong expansion. At this stage, businesses start lowering their prices in an effort to remain competitive against the escalating competition. The product life cycle's mature stage lasts the longest. At this time, the company has reached the peak of the demand cycle, sales growth is starting to slow down, and advertising tactics aren't doing anything to help.
To know more about product life cycle refer to: brainly.com/question/17485582
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