Answer:
P₀ = $59.45
Explanation:
the numbers are missing so I looked for a similar question:
- expected EPS = $2.775
- retain 0% of earnings (years 1 - 2)
- retain 48% of earnings (years 3 - 4)
- then retain 23%
- expected return on new projects = 22.4%
- Re = 10.7%
growth rate = retention rate x return on new projects
g₁ = not given EPS₁ = $2.775
g₂ = 1 x 22.4% = 22.4% EPS₂ = $3.3966
g₃ = 1 x 22.4% = 22.4% EPS₃ = $4.1574
g₄ = 0.48 x 22.4% = 10.752% EPS₄ = $4.6044
g₅ = 0.48 x 22.4% = 10.752% EPS₅ = $5.0995
g₆ = 0.23 x 22.4% = 5.152% EPS₆ = $5.3622
dividend payout ratio expected dividend
year 1 = 0 $0
year 2 = 0 $0
year 3 = 0.52 $2.1618
year 4 = 0.52 $2.3943
year 5 = 0.77 $3.9266
year 6 = 0.77 $4.1289
since the growth rate became constant at year 6, we can find the terminal value for year 5:
terminal value year 5 = $4.1289 / (10.7 - 5.152%) = $74.4214
P₀ = $0/1.07 + $0/1.07² + $2.1618/1.07³ + $2.3943/1.07⁴ + $3.9266/1.07⁵ + $74.4214/1.07⁵ = $0 + $0 + $1.7647 + $1.8266 + $2.7996 + $53.0614 = $59.45
Answer:
The correct answer is A
Explanation:
Demographics information is the term which is described as the statistical data regarding the characteristics of the population like income, age and gender.
When the data assembles regarding the ages of the people and the genders, it would be an example of the information to be assembled regarding demographics.
Therefore, when the company want to target the customers of the consumer population to the market, the kind of the segmentation will help the company is the demographic information.
Answer: i don’t remember this that well but i think u have to add the two numbers
Explanation:
Answer:
b.$57.08
Explanation:
Current price=D1/(Required return-Growth rate)
=(3.38*1.047)/(0.109-0.047)
which is equal to
=$57.08.
Answer:
Option C, Shows the decrease in unit cost as more of the same product is produced over time, is the right answer.
Explanation:
Option C is the correct answer because the learning curve shows the relationship between the cost of the production and output over the time period. Moreover, this curve shows the cost savings when more output is produced over time. The same can be seen in option C that the cost decreases when output rises which means there is a cost-saving.
