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madreJ [45]
3 years ago
11

If the next year’s dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the curr

ent stock price should be:
Business
1 answer:
SCORPION-xisa [38]3 years ago
6 0

Answer:

The answer is $41.67

Explanation:

Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.

Po is the present or current value of the stock

D1 is the next year dividend payment

r is the discount rate

g is the growth rate.

Po = $5.00 /0.16 - 0.04

= $5.00/0.12

=$41.67

Therefore, the current stock price is $41.67

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Harry has worked as a general manager at Gringard, a supply chain management firm, for eleven years of his professional life. Gr
Zepler [3.9K]

Answer:

C. He will most likely need to work variable shifts so that he can connect with all his team members.

Explanation:

He will most likely need to work variable shifts so that he can connect with all his team members.

5 0
2 years ago
Golden has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the d
attashe74 [19]

Answer:

The answer is c. Enter into a forward contract to sell 30,000 euros in 30 days

Explanation:

The risk Golden is facing is the exchange rate risk. Specially, as of the firm's concern, 30,00 euros they will receive in 30 days will not be worth as much as it is now because the Euro is expected to be depreciated against the firm's domestic currency.

So, they may enter into a forward contract allowing them to sell 30,000 euros in 30 days ( take short position in Euro) at pre-determined exchange rate. By doing so, they effectively eliminate the exchange rate risk by lock-in the exchange rate at the day they receive 30,000 euro.

8 0
3 years ago
The incomes of all families in a particular suburb can be represented by a continuous random variable. It is known that the medi
liberstina [14]

Answer:

a) 0.10 or 10%

b) 0.5417 or 54.17%

Explanation:

a) The median income of $60,000 is at the 50th percentile of the distribution. If 40% if incomes are above $72,000, then an income of $72,000 is at the 60th percentile of the distribution. Therefore, the probability that a family's income will be between $60,000 and $72,000 is:

P( \$60,000 \leq X \leq \$72,000)=0.6-0.5\\P( \$60,000 \leq X \leq \$72,000)=0.1 = 10\%

b) If the distribution is known to be uniform, the probability that a random chosen family has an income below $65,000 is:

P( X \leq \$65,000)=0.5+\frac{65,000-60,000}{72,000-60,000}*0.1\\ P( X \leq \$65,000)=0.5417 =54.17\%

7 0
3 years ago
Justify the reasons why businesses use team dynamic theories to understand team performance.
DIA [1.3K]
Team Dynamic Theories analyze how each team members could positively affect each other.

By knowing this information, you could know what cause the positive team dynamic within your team members so that you could utilize it or enchance it even more
8 0
3 years ago
If the lessor meets any one of the five Group I criteria, then the lessor classifies the lease as a(n) ________. If the lessor m
DENIUS [597]

Answer:

Sales type lease, direct financing lease, operating lease

Explanation:

A lease is a contractual agreement whereby the lessor(landlord) is paid for the use of his or her assets/properties by the lease(tenant). The assets that are usually leased are vehicles, buildings etc where payment is made for a specified period.

Sales type lease. Here, the dealer(landlord) earn interest revenue accrued plus the profit on the sale of asset. Whereas the profit is arrived at by deducting the selling price from the actual sales price . Profit is also earned and recognized at the beginning of the lease period.

Direct financing lease. The only benefit earned on this type of lease is the interest by the lessor-landlord. There is no profit or loss in the lease transaction. The actual value of leased asset is the same as the purchased value of the asset.

Operating lease is the combination of both sales type lease and direct financing lease. Here, the benefit of asset leased like yearly depreciation is claimed by the lessee-tenant . The ownership of leased asset must be transferred to the lessor at the end of agreed term subject to lessee having bargaining option. The lesse may however purchase the asset at a much reduced price say seventy five percent of the market value.

7 0
3 years ago
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