Answer:
$61.29
Explanation:
Calculation for what Storico Co. Share of stock will sell today.
Since we have a stock that has a normal growth in which the dividend growth changes every year for the first four years. We can therefore find the price of the stock in Year 3 because the dividend growth rate is constant after the third dividend, which means the price of the stock in Year 3 will be the dividend we are going to use in Year 4, we shall then divide it by the required return less the constant dividend growth rate.
Therefore the price in Year 3 will be calculated as :
P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)
P3= $5.020785/0.07
P3=$71.72
Let find the price of stock today using the PV of the first three dividends in addition with the PV of the stock price in Year 3:
Hence,
P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³
P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928
P0=$3.375+3.465+3.4035+$51.048
P0= $61.29
Therefore if the required return on the company’s stock is 12% what the share of stock will sell for today will be $61.29
Answer:
B. Merger.
Explanation:
According to the given situation when two organization work together to establish a new organization for a purpose or we can say that for the benefit of the organization that is known as merger.
Merger basically may be defined as it is the mixture of two things, mainly of an organization.
Therefore the as per the above explanation the correct answer is B. Merger.
Answer:
$907.50
Explanation:
Calculation for How much would Klemons be paid for a week in which he worked 46 hours
Amount to paid =(10 × 0.5 × $16.50)+(50× $16.50
Amount to paid=$82.50 + $825
Amount to paid=$907.50
Therefore the amount that Klemons should be paid for a week in which he worked 46 hours is $907.50
The determinant of demand is the Number of buyers. The number of buyers is one of five request determinants that move the request bend when they change. The other four are purchasers' salary, purchasers' inclinations, different costs, and purchasers' desires. The quantity of purchasers willing and ready to purchase a decent influences the general request.
