The author used his word choice to darken the tone of this excerpt.
Answer:
The maximum price that should be paid for one share of this stock today is $46.86
Explanation:
Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.
The price of this stock at time zero (t=0) will be,
Prcie = 2 / (1+0.08) + 2.5 / (1+0.08)^2 + 50 / (1+0.08)^2
Price = $46.86
The purpose of a lease is a rent. When you "lease" something, that's the business term of renting something ;-)
This sounds like the Tentative phase according to Ginzberg. It sounds like Libby is between 11 and 17 as well learning what she likes.
Wages
The cost of labour is the sum off all wages paid to employees as well as the cost of employee benefits and payroll taxes paid by an employer.
The cost of labour is broken in direct and indirect cost.
