Answer:
Current Market value of the stock at 8.5% return: 105.88
Explanation:
We will calculate the present value of the dividends:
![\left[\begin{array}{ccc}Year&Cash \: Flow&PV\\1&1.722&1.59\\2&2.12&1.8\\3&2.61&2.04\\4&3.21&2.32\\5&3.40&98.13\\&&105.88\\\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26Cash%20%5C%3A%20Flow%26PV%5C%5C%3C%2Fp%3E%3Cp%3E1%261.722%261.59%5C%5C%3C%2Fp%3E%3Cp%3E2%262.12%261.8%5C%5C%3C%2Fp%3E%3Cp%3E3%262.61%262.04%5C%5C%3C%2Fp%3E%3Cp%3E4%263.21%262.32%5C%5C%3C%2Fp%3E%3Cp%3E5%263.40%2698.13%5C%5C%3C%2Fp%3E%3Cp%3E%26%26105.88%5C%5C%3C%2Fp%3E%3Cp%3E%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We will do the following:
each dividends we multiply by the previous, by the grow rate of 23%
D1 1.40 x ( 1 + 23%) = D2 = 1.722
D2 1.722 x ( 1 + 23%) = D3 = 2.12
...
Then after the four years we calculate the gordon model for the infinite series of dividends

3.95/(0.085-0.06) = 158
Then calculate the present of each dividends applying the present value of a lump sum


PV div1 = 1.59

PV div2 = 1.8

PV div3 = 2.04
...
Then we add them and get the present value of the stock
<u>Answer:</u>
<em>True
</em>
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<u>Explanation:</u>
The exchange rate is a system applied to a government or national bank ties the nation's monetary authority conversion standard to another nation's cash or the cost of gold.
At the point when America after war parity of installments surplus went to a shortfall during the 1950s and 1960s, the periodic conversion scale modifications allowed under the understanding eventually demonstrated lacking. In 1973, President Richard Nixon expelled the United States from the best quality level, introducing the time of coasting rates.
Answer:
Actual Cost of Supplier A: $291.60
Actual Cost of Supplier B: $271.60
Explanation:
<u>Supplier A:</u>
Cost - 270
Shipping FOB shipping point
Purchase Discount = Invoice Price * Discount
For Supplier A, the invoice price is 270 and discount is 2/10 = 2%, so:
Purchase Discount = 270 * 0.02 = $5.4
Cost is:
270 + 27(shipping FOB point) - 5.4 = $291.60
<u>Supplier B:</u>
Cost - 280
Shipping Destination (so 0)
Purchase Discount = Invoice Price * Discount
For Supplier B, the invoice price is 280 and discount is 3%, so:
Purchase Discount = 280 * 0.03 = $8.4
Cost is:
280 - 8.4 = $271.60
She wouldn't owe her brother any money because an agreement to accept different performance in lieu of full payment of liquidated debt is binding.
Hopefully it helps.