The stock price is $27.774.
The stock price can be determined using the Gordon constant dividend growth model. According to the model:
Stock price = DI / (r - g)
Where:
- D1 = dividend in the next period = 1 x ( 1.054) = 1.054
- r = required rate of return
- g = growth rate
1.054 / (9.2 - 5.4)
1.054 / 3.8
1.054 / 0.038
= $27.74
A similar question was answered here: brainly.com/question/14058705
Answer:
Investors
Explanation:
Investor is the term which is defined as the person or an individual who allocated the capital or the fund with the expectation for gaining an advantage or the financial return in future.
The investor is someone who provides the business with the capital or funds and someone who bought the stock. Under this situation, the banks are those who channels the money from the savers to borrowers to the investors.
Answer:
A. Efficient in production but not necessarily in allocation.
Explanation:
Allocation is defined as the distribution of a limited quantity of product during various time periods. The economy in the excersice can produce, therefore is efficient in this aspect but since its distribution is limited its allocation is not efficient.
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