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3 years ago

Give the full meaning of NERSA as well as the name of current chairperson of the organisation

1 answer:

7 0

Hey there

NERSA is the National Energy Regulator that was established as a juristic person.

Chairperson = Jacob J Modise

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Business Solutions is expected to pay its first annual dividend of $.84 per share in Year 3. Starting in Year 6, the company pla

ra1l [238]

Answer:

Ans. the value of the stock today is $6.31

Explanation:

Hi, we need to bring to present value all the cash flows of this stock, that is bringing to present value the cash flows from year 1 through 6 and the horizon value which is the value in year 6 of the cash flows from 6 and beyond.

The formula to use for the dividends from year 1 - 6 is:

$PresentValue=\frac{Dividend((1+r)^{n}-1) }{r(1+r)^{n} }$

Where:

r = is the discount rate

n = number of consecutive dividends

And the present value of the horizon value is:

$PV(Horizon)=\frac{Dividend*(1+g)}{(r-g)} *\frac{1}{(1+r)^{n} }$

So everything together is:

$Price=\frac{Dividend((1+r)^{n}-1) }{r(1+r)^{n} }+\frac{Dividend*(1+g)}{(r-g)} *\frac{1}{(1+r)^{n} }$

Now, the numbers

$Price=\frac{0.84((1+0.144)^{6}-1) }{0.144(1+0.144)^{6} }+\frac{0.84*(1+0.02)}{(0.144-0.02)} *\frac{1}{(1+0.144)^{6} }=3.23+3.08=6.31$

So based on the future cash flows of this share, its fair price is $6.31

Best of luck.

7 0

3 years ago

. As you start consuming potato chips, your marginal utility is very high, but it begins to fall slowly until you've eaten 10 ch

scoray [572]

Answer:

The correct answer is 10 chips.

Explanation:

A person is eating chips. Initially, the marginal utility is very high, but after 10 chips it starts declining. It declines till 49 chips and after that it becomes negative.

We see that the marginal utility derived from the consumption of chips start to decline after consuming 10 chips.

This implies that marginal utility is being maximized at the consumption of 10 chips.

So the utility-maximizing quantity of chips is 10 chips.

6 0

3 years ago

Maxwell Communications paid a dividend of $1.35 last year. Over the next 12 months, the dividend is expected to grow at 11 perce

PilotLPTM [1.2K]

Answer:

Current dividend paid (Do) = $1.35

Growth rate (g) = 11% = 0.11

Cost of equity (ke) = 24% = 0.24

Po = Do(1 + g)

Ke - g

Po = $1.35(1 + 0.11)

0.24 - 0.11

Po = $1.4985

0.13

Po = $11.53

Explanation:

The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.

4 0

3 years ago

Which business information management career/job role enables you to run an independent consultancy?

gtnhenbr [62]

C. is the answer to this question

7 0

2 years ago

Read 2 more answers

Pace Co. borrowed $10,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-

mars1129 [50]

Answer:

Explanation:

Amount of interest need to paid is 30 day month

= 10000×(1.075)×30/360 = 60.42

Simple interest formula is

Interest for year is = 10000×7.5% = 750

Per month is = 750×30/360 = 60.42

8 0

2 years ago