Answer:
The answer is D). 1.15, hope this helps, have a great day/night, stay safe, happy thanksgiving!
Answer: Price after 1 year = $24.83
Explanation:
Return = [D1/P0 ]+ g
= [(3*1.08)/23] + 0.08
= 22.09%
We assume the return is same for next year as well.
Thus,
r = [D2/P1] + g
22.09% = (3*1.082/P1) + 8%
P1 = $24.83
<u>Thus, price after 1 year is $24.83</u>
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Answer:
the word objects makes me think B. also, wants can be fulfilled by objects, not tools or economics.
Explanation:
Answer:
d. The stock price is expected to be $54 a share one year from now.
Explanation:
Using dividend discount model(DDM), find next year's dividend;
P0 = D1/ (r-g)
50 = D1/(0.14-0.08)
50 = D1/ 0.06
Multiply both sides by 0.06 to solve for D1;
50 *0.06 = D1
3 = D1
Next, year's dividend is $3
Dividend yield = D1/P0;
= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.
Next year's price; P1 = P0(1+g)
P1 = 50(1.08) = $54 hence choice D is correct