Answer:
The price of the stock today is $15.63
Explanation:
The three stage Dividend Discount model will be used to calculate the price of this stock as the dividends are growing at three different growth rates. These dividends will be discounted back to calculate the price of the stock today.
The price per share today under this model will be:
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+gC) / (r - gC)] / (1+r)^n
Where,
- D1 is the dividend expected for the next period of Year 1.
- gC is the constant growth rate or third stage growth rate that will last forever.
P0 = 1.25 / (1+0.2) + 1.25 * (1+0.4) / (1+0.2)^2 + 1.25 * (1+0.4) * (1+0.2) / (1+0.2)^3 + 1.25 * (1+0.4) * (1+0.2)^2 / (1+0.2)^4 +
[1.25 * (1+0.4) * (1+0.2)^2 * (1+0.08) / (0.2 - 0.08)] / (1+0.2)^4
The P0 = $15.625 rounded off to $15.63
Answer:
$37,600 favorable
Explanation:
Variable overhead spending variance can be computed as;
= (Actual hours worked × Actual variable overhead rate) - ( Actual hours worked - Standard variable overhead rate)
= ( 18,800 hours × $77,700/12,000) - (18,800 hours × $4.5)
= [(18,800 × $6.5) - (18,800 × $4.5)]
= $122,200 - $84,600
= $37,600 favorable
The part of the business cycle given that shows a period of contraction is <u>Point B. </u>
<h3>Why does point B show contraction?</h3>
When the economy is in a period of contraction, the business cycle would show a fall from the peak to the trough.
The peak is point A and the trough is Point C. Point B shows the fall from A to C which means that Point B must be the contraction.
In conclusion, option B is correct.
Find out more on the business cycle at brainly.com/question/26086110.
There are 1560 ways
Explanation:
The toal number of restaurants are 8, out of which 3 serve seafood, and during the summer gateway, Jason decided to dine out at 4 multifarious restaurants.
Since, the order is significant, permutations is to be used.
Four restaurants can be chosen from the 8 restaurants in 
. In this case, "at least one" is complement of "fewer than one" (that is 0). Thus, four restaurants that are not serving seafood can be chosen from five restaurants in 
.
<u>Using complements principle to get the number of ways to get at least one of the restuarants serve seafood,</u>
= 1680-120
= 1560
Therefore, there are 1560 ways
