Answer:
12.78
Explanation:
Two stage dividend growth model enables us to identify dividend value by incorporating the effect of multiple growth rates. This model assumes that dividend will pass out through 2 stages of growth. In first stage the dividend grows at a constant rate to a specified time then dividend grows at a further rate.
= Do (1 + g) + D1 (1 +g) + D2 (1 +g) + D3 (1 +g) + D3 * (1 +g2) / (r - g2)
0.4 * 1.2 + 0.48 * 1.2 + 0.6 * 1.2 + 0.7 *1.2 + 0.83 * 1.03 / 11 - 3
= 12.78.
Explanation:
The motivation for consumption comes from individual needs and desires, which may occur consciously and unconsciously. To meet their needs and wants, people identify and buy products and services that are compatible with their satisfaction.
There are several surveys and studies that seek to identify consumer behavior and explain how the purchasing decision process occurs. One of the most widespread theories in the world is Maslow's theory, which presented a hierarchy of needs that aims to identify a priority system of human needs satisfaction, divided into five parts, which are arranged in order of importance:
- physiological,
- safety,
- love,
- esteem and
- self-actualization
This theory is of great relevance to help marketers target their strategy according to the priority and need of individuals, including in their campaigns messages that send the consumer a sense of urgency for the product or service, directing marketing communication to the bottom of the hierarchy, which is the consumer's priority.
The weighted average cost of capital (WACC) for ABC Limited is 12.63%
The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.
It is determined as the sum of the cost of each source of finance multiplied by their respective weights in the firm's capital structure.
By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.
WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)
weight of equity=equity finance/total finance
cost of equity=15%
weight of mezzanine finance=mezzanine finance/total finance
cost of mezzanine finance=9.5%
weight of debt of finance=debt finance/total finance
total finance=$5m+$2m+$1m
total finance=$8m
WACC=($5/$8*15%)+($2/$8*9.5%)+($1/$8*7%)
WACC=12.63%
Find further guidance on weighted average cost of capital's computation in the link below:
brainly.com/question/25566972
#SPJ1
Answer:
- Invest $8,470 in X
- Invest $2,530 in Y.
Explanation:
The following expressions can be formed;
Let x and y be the proportions
x + y = 1
0.15x + 0.1y = 13.85%
Expressing y in terms of x;
x + y = 1
y = 100 - x
0.15x + 0.1 ( 1 - x) = 13.85%
0.15x + 0.1 - 0.1x = 13.85%
0.05x = 13.85% - 0.1
x = 13.85%0.05 - 0.1/0.05
x = 77%
Invest 77% in X = 77% * 11,000
= $8,470
Invest in Y
= 11,000 - 8,470
= $2,530
Answer:
Building with fair value of $150,000
Explanation :
In the consolidation work paper elimination, we eliminate the Equity or Net Identifiable assets that exist in Star Company at the Acquisition Date.
The Building with fair value of $150,000 was the only balance sheet item existing thus this is ultimately the Net Identifiable Assets that would be eliminated.
