Answer:
$81.52
Explanation:
The current share price is the present value of future dividends as well as the present value of the terminal value of dividends beyond year 6 as shown thus:
Current dividend=$3.95
Year 1 dividend=$3.95*(1+5%)=$4.15
Year 2 dividend=$4.15*(1+5%)=$4.36
Year 3 dividend=$4.36*(1+5%)=$4.58
The required rate of return(discount rate) for the dividends in the FIRST 3 years above is 14%
Year 4 dividend=$4.58*(1+5%)=$4.81
Year 5 dividend=$4.81*(1+5%)=$5.05
Year 6 dividend=$5.05*(1+5%)=$5.30
The required rate of return(discount rate) for the dividends in the NEXT 3 years above is 12%
Terminal value of dividend=Year 6 dividend*(1+growth rate)/(rate of return-growth rate)
growth rate=5%
rate of return=10%(rate of return thereafter)
terminal value=$5.30*(1+5%)/(10%-5%)
terminal value=$111.30
current share price=$4.15/(1+14%)+$4.36/(1+14%)^2+$4.58/(1+14%)^3+$4.81/(1+12%)^4+$5.05/(1+12%)^5+$5.30/(1+12%)^6+$111.30/(1+10%)^6
current share price=$81.52
Answer:
<h2>In this case,the correct answer would be option b) given in the answer choices or More time to explore new revenue generation activities.</h2>
Explanation:
- From an economic or business perspective, outsourcing of operational activities or conducts refer to assigning the business functions, activities, projects, assignments etc. to any third party or external agency with a view to enhance work productivity and minimize overall average operational costs or expenses.
- The third party or the external entities involved in the outsourcing activities are typically not part of the parent or main company or are not commercially affiliated with the parent or main company.
- One of the advantages of outsourcing to the company executives is to be able to assign some of the major and time consuming business activities to outsourced companies or entities and focus more on other mediums or sources of revenue generation for business. It might include introduction of new product or service lines, restructuring of the internal organizational settings or venturing new markets to capture higher consumer or client base. Hence, higher work or labor division through outsourcing activities can provide more time and opportunity for executives to focus more on other revenue generating endeavors.
<span>the one that would be considered the highest risk portofolio would be : a portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds.
Stocks is considered a high risk investment because it is very hard to predict the market and you could potentially lose a huge amount of your investment in a really short time.
As for mutual fund, it's considered a high risk because you basically handed over your investment to a third party and you won't be having any control on how it would be used.</span>
Answer:
I and IV are correct.
Explanation:
The reduction in the personal taxes and in the Social Security withholding taxes are considered as the expansionary fiscal policy. Fiscal policy refers to a policy that is used by the government for monitoring and influencing a nation's economy. Government adjust the expenditure, investment and taxes for maintaining the stability in an economy.
If there is a fall in level of tax rate then this will increase the disposal income of the consumers and hence, an increase in the aggregate demand. Therefore, there is a rightward shift in the aggregate demand curve.
Expansionary fiscal policies refers to the policies which increases the aggregate demand in an economy.
Answer:
money invested in high yield financial
