1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serggg [28]
3 years ago
5

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% therea

fter. If the required return for Deployment Specialists is 11.0%, what is the intrinsic value of its stock
Business
1 answer:
AleksAgata [21]3 years ago
8 0

Answer:

The value of the stock = $19.64

Explanation:

According to the dividend valuation model, <em>the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.</em>

Year                     Workings                        Present value(PV)

1                 $1 × (1.22)  × 1.11^(-1)  =                     1.10

2                 $1 × (1.22)^2 ×(1.11)^(-2) =                1.21

3                 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)

PV (in year 0) of Year 3 dividend  = 21.35 × 1.11^(-2)

                                      = 17.33 (see notes)

<em>The value of the stock</em> = $1.10+ $1.21 + 17.3

                                      = $19.64

Notes:

<em>Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.</em>

<em />

The value of the stock = $19.64

                                     

You might be interested in
Ed's Print Shop received an invoice dated May 10 for $2,500 with terms 3/10, 1/15, n/60. On May 22, Ed's Print Shop sent a parti
artcher [175]

Amount to be credited = $2,020

Outstanding balance = $480

Explanation:

The payment terms state that

  • 3% discount may be taken within 10 days of the invoice date (up to May 20); or  
  • 1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or
  • The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
  • The  3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.

Amount to be credited

= 2000 / (1−0.01)

= 2000 / (0.99)

= $2,020

Outstanding balance

= 2500 - 2020

= $480

3 0
3 years ago
How does Alibaba implement competitive pricing strategy in market?
laila [671]

Answer:

<u>By reducing their prices compare to the price of their competitors.</u>

Explanation:

Note, a <u>competitive pricing strategy</u> refers to a pricing strategy that involves <em>deliberately </em>finding out the prices in which your competitor sells their product and then tailoring yours to be a little lower than theirs, by so doing customers feel motivated to buy from you instead.

For example, Alibaba can go to its competitor, let's say Amazon. and see how sells an iPhone. Then Alibaba can reduce/set its own price benchmark based on their prices.

6 0
3 years ago
In 2020, Wildhorse Corporation reported net income of $1,021,600. It declared and paid preferred stock dividends of $265,100. Du
ikadub [295]

Answer:

Wildhorse’s 2020 earnings per share is $3.79

Explanation:

The computation of the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (Average weighted of common outstanding shares)

where,  

Net income and the preference dividend is $1,021,600 and $265,100

And, the number of shares are 199,600 shares

Now put these values to the above formula  

So, the value would equal to

= ( $1,021,600 - $265,100) ÷ (199,600 shares)

= $3.79 per share

8 0
3 years ago
Most before and after ads will__the difference in the two photos
diamong [38]

Answer:

c. exaggerate

Explanation:

Typically, before and after photos is used by company to convince the customers that their product has a desired effect. You can see this in advertisement for almost every products for weight loss (such as appetite suppressant or workout equipment.)

The before after photos that showed in the advertisement often exaggerated in order to give positive impression toward their product. For example, the companies often took the before and after photo from different angle in order to make the people seems slimmer.

8 0
3 years ago
"Which of the following is a significant operation interface that distinguishes a service supply chain from a product supply cha
dimulka [17.4K]
C. supplier relationship management is the answer
6 0
3 years ago
Other questions:
  • Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, an
    6·1 answer
  • _____ is a classic management tool that incorporates the idea of scanning elements such as strengths, weaknesses, opportunities,
    11·1 answer
  • F. in late 2010 hca announced an intended dividend recapitalization in which it would pay a $2 billion dividend to shareholders
    14·2 answers
  • Same company as in RA 5.3: Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of
    7·1 answer
  • Marine, Inc., manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid mode
    8·1 answer
  • On January 1, 2016, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $240,
    10·1 answer
  • he following information for Cooper Enterprises is given below: December 31, 2021Assets and obligations Plan assets (at fair val
    10·1 answer
  • Determine how each scenario impacts the capital stock, including the effect of depreciation, if applicable. a. A salesperson dro
    11·1 answer
  • A U.S. business sells milk to consumers in France. Which situation would most likely cause demand for milk to rise in France?
    12·1 answer
  • The difference between the price charged for a product and the cost to manufacture it is referred to as the?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!