Answer:
Milton should buy the company
Explanation:
Comparing the intrinsic value of the company in both scenarios using the Gordon Growth Model we get:
PV = [D0 * (1 + g)] / (r - g) where
D0 is current dividend
g = growth rate
r = required rate of return
Case 1 = current
PV = 1.7 * (1 + 0.05) / (0.11 - 0.05)
PV = 29.75
Case 2 = buying company
PV = 1.7 * ( 1 + 0.065) / ( 0.12 - 0.065)
PV = 32.92
The present value of the share when buying the company is higher than the current present value, therefore Milton should go ahead buying the company.
As your job as a server of store owner, the law
requires you to make reasonable efforts to avoid selling alcohol to underage
customers and establish measures to avoid guests from getting highly intoxicated.
Examples are serving properly measured drinks, checking identification cards,
and serving food or complimentary drinks such as soda or water.
<h2>John demonstrates the quality of "Leadership".
</h2>
Explanation:
Leadership is one of soft skill which is really essential for each and everyone to move successfully and to grow in the career.
A successful leader will,
• Motivate his/her team
• Give a clear picture of the goal
• Pat them on need
• Guide throughout the road map
• create leaders
• Take complete responsibility on his/her shoulder
• Show path to proceed
• Takes initiative
• Brings out creativity
• Shows empathy
• Be positive
So here John tries to clear his team on goals which shows a positive leadership quality. He could do this only because he possess all the listed qualities just above this sentence.
Preferred stock dividends in perpetuity pay a constant
Definition: Stock is a general term used to describe a company's proof of ownership. Stocks, on the other hand, refer to the stock certificates of a particular company. When you own shares in a particular company, you become a shareholder. Explanation: There are two types of stocks: common stocks and preferred stocks.
The main reason investors own stocks is to get a return on their investments. That return is generally obtained in two ways. The stock price goes up, that is, the stock price goes up. You can then sell your shares for a profit if you want.
A stock exchange, stock market, or stock market is a collection of buyers and sellers of shares that represent ownership of a company. These may include securities that are publicly traded
Learn more about stock here
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Answer:
The issue price of the bonds is $ 473,171 .
Explanation:
The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.
Future Value = Redemption present value (RPV) + Present value of interest (PVI)
RPV = 500,000 (1+10%)^-10 = $ 192,772 -A
PVI = 22,500 * Annuity factor =$280,400-B
Future Value = A + B = $ 473,171
Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+10%/2)^-20)/(10%/2) = 12.4622