Answer:
Price of stock = $49.5
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price of stock=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
DATA:
D0- 2.7
g- 10%
K- 16%
Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5
Price of stock = $49.5
Answer:
Answer for below mentioned points is in the attached image :
Use a decision tree to determine whether Moon should add capacity to its Santa Clara plant or if it should outsource to Molectron. What are some other factors that we have not discussed that would affect this decision?
Explanation:
Answer:
a. Gordon made a gift when the real estate was purchased of <u>$450,000</u> to Fawn.
Since Gordon gave 50% of the real estate to his sister as a gift when he purchased it, the gift must be valued at the time it happened ($900,000 x 50%)
b. Gordon's estate must include <u>$2,900,000</u> as to the property.
Gordon purchased all the real estate by himself, so his estate must include the value of the whole property.
c. How would the estate tax consequences change if it was Fawn (not Gordon) who died?
Fawn's estate would include <u>$0</u> as to the property.
Since Fawn didn't buy the property, her estate cannot include any amount of it.
The three ingredients needed for employee performance are motivation, capacity and support. Motivation is really important because if employees are influenced positively they can make things better. Capacity is also key because if employees are poorly prepared the won't have a good performance. Support is crucial because if we want to enhance employees' performance we have to be ready to back them up.
In the block style business letter, the inside address appears below the date, with one blank <u>"paragraph"</u> in between.
Block format is normally utilized for business letters.
In block format, the whole content is left adjusted and single divided. The special case to the single dispersing is a twofold space between sections (rather than indents for passages).
Full block style business letters have a formal appearance, anyway they can be utilized in casual business circumstances and also formal ones. In the event that you are searching for a solitary arrangement that will function admirably in each circumstance, this is a decent one to utilize.
