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Paul [167]
3 years ago
10

Lawrence​ Industries' most recent annual dividend was ​$1.80 per share ​(D0equals$ 1.80​), and the​ firm's required return is 11

​%. Find the market value of​ Lawrence's shares when dividends are expected to grow at 8​% annually for 3​ years, followed by a 5​% constant annual growth rate in years 4 to infinity.
Business
1 answer:
Dima020 [189]3 years ago
8 0

Answer:

The price of the stock today is $34.13

Explanation:

The price of the stock that grows at two different growth rates can be calculated using the two stage growth model of DDM. The DDM requires to discount back the dividends to calculate the price of the share today.

The price of the stock today is,

P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]

P0 = 1.8 * (1+0.08) / (1+0.11)   +  1.8 * (1+0.08)^2 / (1+0.11)^2  +  

1.8 * (1+0.08)^3 / (1+0.11)^3  +  [ (1.8 * (1+0.08)^3 *(1+0.05) / (0.11-0.05)) / (1+0.11)^3]

P0 = $34.127 rounded off to $34.13

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never [62]

The functional level of an organization is made up of departments, which provide specific and focused strategic direction for the company to achieve its objectives and goals set out in the planning.

<h3 /><h3>Functional level</h3>

It provides support for the strategy developed in the organization, with the general objective of generating greater competitiveness for the company, effectively maintaining the corporate performance of each integrated system.

Therefore, functional departments exist in a company so that each sector has the necessary focus on resources, units and people in order to generate greater compliance with the organizational strategy and objectives.

The correct answer is:

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5 0
2 years ago
It is not a consumers responsibility to report fraudental activity
creativ13 [48]

If this is a true/false question, the answer is FALSE.

It is consumers' responsibility to report fraud when it occurs.

4 0
3 years ago
Ken Jones, an architect, organized Jones Architects on April 1, 20Y2. During the month, Jones Architects completed the following
Over [174]

Answer:

cash 18,000

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to record issuance of stock for cash

car   19,500

  cash             2,500

 note payable  17,000 ( 19,500 - 2,500)

to record purchase of automobile

rent expense 3,150

    cash                       3,150

to record payment of rent

supplies        1,450

       cash                  1,450

to record payment of supplies

office equipment   6,500

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to record purchase of equipment

prepaid insurance    2,400

                  cash                       2,400

to record purchase of insurance for the whole year

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service reveue       12,000

to record service earned and collected

account payable   1,800

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         cash                                 375

to record miscellaneous expense

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to record invouce for blueprint

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to record earned services but not collected.

salaries expense 2,800

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to record payment of assistant salary

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to record miscellaneous expense

note payable 300

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NemiM [27]

Answer:

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Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.  

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