Answer:
$35.16
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
First we will calculate the value of stock after 5 years.
Value of stock = Dividend / (Rate of return - Growth rate)
Value of stock = $5.40 / ( 12.3 % - 3.7 % )
Value of stock = $62.79
As we know the value of the share is the present value of future cash flows associated with the stock. $62.79 is value of the share after 5 years. We have to discount it further to calculate today's value.
Today value of stock = Value after 5 year x Discount factor for 5 years
Today value of stock = $62.79 x ( 1 + 12.3% )^-5 = $35.16
Answer:
The magnitude of the discount or risk is directly related to the size of the investor’s equity ownership in the business.
Explanation:
The following statements should be considered true with respect to the liquidity or marketability risk
a. It can be measurable
b. The discount or risk magnitude should be inversely related
c. It is considered to be important for adjusting the discount rate
d. It can be fall in the current years
So, the remaining statement should be the answer
Answer:
Explanation:
Because the cattle are true-breeding, the progeny of this herd will have short horns, brown hides and short in stature, this is because in true breeding the parent are homozygous for every traits and they will have the same phenotype with their parents.