Answer:
The price of the stock today will be $66.19
Explanation:
To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,
P0 = D1 / r - g
We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.
P8 = 14.25 * (1+0.06) / (0.14 - 0.06)
P8 = $188.8125
The price of the stock today will be,
P0 = 188.8125 / (1+0.14)^8
P0 = $66.189 rounded off to $66.19
Answer:
Tom Busby
His annual payment will be:
= $4,091.64
Explanation:
a) Data:
Loan = $20,000
Interest on loan for 4 years = 8% per annum
Amount of loan after 4 years = $27,200 ($20,000 * 1.360)
Payment period = 12 years
Interest rate during payment period = 11%
b) From online finance calculator:
You will need to pay $4,091 every year for 12 years to payoff the debt at 11% interest.
Monthly Payment $340.97
Annual Payment $4,091.64
Time Required to Clear Debt 12.00 years
Total of 144 or 12 Payments = $49,099.25
Total Interest $21,899.25
Answer:
3
Explanation:
Data provided in the question:
Sales for the last four months :
8, 10, 15, and 9 units
Last four forecast of sales:
9, 11, 8 and 12 units
Now,
The mean absolute deviation (MAD) value of these forecast will be calculated as:
MAD = [ ∑|Sales - Forecast sales| ] ÷ [ Total number of forecast ]
or
MAD = [ |8 - 9| + |10 - 11| + |15 - 8| + |9 - 12| ] ÷ 4
or
MAD = [ 1 + 1 + 7 + 3 ] ÷ 4
or
MAD = 12 ÷ 4
or
MAD = 3
He should take the option one of sales commission of 3.1% on
each bond. If he takes the 2nd option, he is required to pay 24$ per
bond. But if he takes the ist option, he is required to pay 15.5$ per bond.
88.754 is the market rate. Total investment is of 500$. Multiply the commission
rate with the amount and you get 15.5 $. There is a difference of 8.5 dollars
between the two options.
Answer:
because Ivan's decisions will impact the substantial cost of the business.
Explanation:
An operations manager is responsible for managing organizational resources and applying them effectively to meet organizational goals and objectives. It is therefore necessary that Ivan as the operations manager of a network of amusement parks, before determining a new location for a park, he must anticipate the customer demand and determine the adequate capacity of the site for the construction of the park. that their decisions will directly impact the substantial cost of the business, that is, the planning must meet the needs specified by the customer so that the cost is compatible with the budget provided for by an effective planning for that business.
Organizational resources must be allocated efficiently and effectively so that there is compliance with the objectives and goals of a business and for it to be well positioned and successful in the market.