Answer:
$ 152.35
Explanation:
The stock price today can be computed by first determining the future value of the dividend in perpetuity ,then discounting that to present value.
Value in perpetuity=dividend/required return
dividend is $20
required return is 5.10%
value in perpetuity=$20/5.10%=$392.16
The price of the stock today is the present value of the value in perpetuity
PV=FV*(1+r)^-n
FV is $392.16
r is the required return of 5.10%
n is the number of years involved,which is 19,it is 19 because counting from today till the next next years would be first day of the next twenty years
price=$392*(1+5.10%)^-19=$ 152.35
Answer:
The firms in this industries have dis-economies of scale.
Explanation:
When firms have dis-economies of scale, they experience higher average cost (this means lower productivity) with a rise in the output.
The bank would want to know the person’s credit history so the bank knows the person will repay the loan.
Product differentiation.
Dollar shave club is distinguishing their products as unique in the shaving market because they are convenient and affordable.
You mutiply the outside number by the 1st number on the inside of the paranthesis