Answer:
b. $12.67
Explanation:
The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.
Year 1 dividend=current year dividend*(1+12%)
Year 1 dividend=$60m*(1+12%)=$67.20m
Year 2 dividend=$67.20m*(1+12%)=$75.26m
Year 3 dividend=$75.26m*(1+12%)=$ 84.30m
Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m
Year 5 dividend=$ 94.41m*(1+12%)=$105.74m
the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)
the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m
value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5
value of the company=$956.00 m
value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)
Answer:
Yes
Explanation:
This type of agreements are generally signed in order to protect the foundling members of a business that decide to continue working. Generally, founding members have a large participation in the business or even have certain special stocks that grant them higher voting power. In order for the remaining founders to be able to keep managing the company, they sign this type of agreements so that other external investors do not replace them.
The development of kidney failure becomes more prevalent with age; therefore, the amount of protein in the diet must be reduced.
People with chronic kidney disease or kidney failure will face a dilemma with protein consumption because they can't remove the protein waste in the kidney. The protein will pollute the blood if kidney can't remove it.
Uncertainty about future events
Estimating revenues (or benefits), costs, and cash flows is a challenging endeavor, especially for projects with lengthy lifespans, in large part due to uncertainty about the future.
The variability level of cash flow is referred to as the uncertainty of cash flow. On the one hand, it stands for the consistency and predictability of cash flow, but on the other, it also symbolizes the potential for future growth and improved performance of the company.
Due to changes in the macro aspect, the integrated force of the macroscopic environment and microcosmic environment, which affects cash flow, is primarily represented in economic uncertainty factors.
For more information about cash flow please refer to -brainly.com/question/14341220
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Answer:
frictional
structural changes.
Cyclical
frictional
Explanation:
Structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
Frictional unemployment is the period of time a person is unemployed from the time he leaves his current job and the time he gets another job.
Cyclical unemployment occurs as a result of fluctuations in the economy. In a downturn unemployment is high and in a boom, unemployment is low.
