Answer:
The correct choice is C)
The most logical thing to do would be to calculate the value of the stock in 5 years time.
Explanation:
This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.
The formula for the DDM, which assumes constant growth in dividends, is provided below.
P0 = D1/(r-g)
Where,
P0 = intrinsic value of stock
D1 = dividend payment one year from today
r = discount rate
g = growth rate
Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:
t0 = $0
t1 = $0
t2 = $0
t3 = $0
t4 = $0
t5 = $0.20
t6 = $0.20 * 1.035
Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.
Based on the information above, we are able to prove that the answer is '5'.
Cheers!
The questions which would result in data that is categorical are:
- Is your job as an IT administrator stressful?
- What is your biggest source of stress?
- How has your job impacted your personal life?
- Have you ever considered switching careers because of on-the-job stress?
<h3>What is a numerical data?</h3>
A numerical data is also referred to as a quantitative data and it can be defined as a data set that is primarily expressed in numbers only. This ultimately implies that, a numerical data refers to a data set consisting of numbers rather than words.
<h3>What is a categorical data?</h3>
A categorical data can be defined as a type of statistical data that is used to group information that are having the same attributes or characteristics.
In Science, some examples of a categorical data include the following:
- Age
- Gender
- Race
- Religion
- Class
In conclusion we can infer and logically deduce that the questions above would result in data that is categorical.
Read more on categorical data here: brainly.com/question/20038845
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Answer:
3,000 $100 bills equivalent to $300,000
Explanation:
The economic order quantity (EOQ) is the optimum quantity of a good to be purchased or required at a time in order to minimize ordering and carrying costs in inventory.
EOQ = the square root of [(2 times the annual demand in units times the incremental cost to process an order) divided by (the incremental annual cost to carry one unit in inventory)]
- annual demand in units = 12,500 x 12 = 150,000
- incremental costs to process an order = $300
- incremental annual cost to carry one unit in inventory = 10% x 100 = $10
EOQ = √[(2 x 150,000 x $300) / $10] = √($90,000,000 / $10) = √9,000,000 = 3,000 bills
Risk aversion is the behavior in someone when they are exposed to uncertainty and are unsure of something due to being uncertain about it.
In this case, reluctant for taking changes when making investment best describes risk aversion from an economics stand point. If someone isn't sure the return on investment they would get from investing or the risks associated with investing in something, they are more hesitant to do that.
