Answer and Explanation:
Given that the dividend will grow at 20% for two years and then a constant 6% at third year
1st year dividend at 20%= $3
Present value of the dividend for the first year=PV factor at 15%(from table) = $2.61
2nd year dividend at 20% = $3.60
Present value of the dividend for the second year = PV factor at 15%(from table) $2.72
3rd year dividend at 6% growth rate =
$42.40
Present value of the dividend for the third year = PV factor at 15% = $32.06
Current price of the stock =$2.61+$2.72+$32.06
=$37.39
Answer. You're entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies.
Answer:
D
Explanation:
Cash flow is the flow of cash and cash equivalent in and and out of a business.
there are three types of cash flows:
1. Investing cash flow - It involves the use of long term cash. it is the cash flow generated from the purchase and sale of fixed asset e.g. Sale of plant assets.
2. operating cash flow - it shows the net amount of cash generated from a company's normal business operation
3. financing cash flow - it shows the net amount of funding a company receives over a given period e.g. issuance of common stock
Reasons why cash flow analysis is popular
- Cash flows are less subject to manipulation when compared with net income
- Cash flow in often positive when net income is negative or zero
Answer:
A. Actual Sales - Break-even sales
Explanation:
In business studies, Margin of safety (MOS) is the difference between actual/projected/budgeted sales and the level of break even sales. It is calculated by subtracting break even sales from projected or budgeted sales.
It is usually calculated by a company to know the level of percentage by which sales can drop in that company, before they start incurring losses. IT IS A MEASURE OF BUSINESS RISK.
