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Serggg [28]
2 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]2 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

                                     

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Mkey [24]

Answer:

c. 80 dollars.

Explanation:

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Lisa's opportunity cost is $ 80.  She has valued going out with her friend at $ 80, which is the highest value amongst her three choices. Since she can not engage in all the three activities at the same time, the next best alternative to writing her exam is the opportunity cost.

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__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell
ira [324]

Answer:

Franchise

Explanation:

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Entry into a market by new firms will increase the:_______
Oksi-84 [34.3K]

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The right approach is Option a (supply of the good).

Explanation:

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3 years ago
On January 1, a company issued 6%, 10-year bonds with a face amount of $60 million for $55,736,520 to yield 7%. Interest is paid
Olegator [25]

Answer:

Effective interest on June 30 on a 6% $60 million bond at 7% effective rate is $1,950,778

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for (i = 0; datasamples[i] < NUM_POINTS ; ++i) {

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The index variable will keep track of the position within the array as we move from left to right. Starting on the left, at index 0, we will move right until we are at the end of the array.

++i takes care of incrementing the index variable each time the loop runs. This is what moves through the array.

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