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Aliun [14]
3 years ago
6

A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the

amount of $2.4. It is expected to pay a dividend of $3 exactly five years from now. The dividend is expected to grow at a rate of 5% per year forever after that point. The required return on the stock is 14%. The stock's estimated price per share exactly TWO years from now, P2 , should be $______.
Business
1 answer:
vesna_86 [32]3 years ago
8 0

Answer:

$24.59 or $24.6 or $25

Explanation:

Value of the share is the present value of dividend associated with that share. We need to calculate the present value of each dividend at year 2 and add them to determine the value of the share.

As given there is no dividend for 3 years,next dividend of $2.4 dividend will be discounted for two years and $3 dividend for three years. After that we need to calculate the  present value using DVM and discount this value for 4 years.

Value of Stock = [ $2.4 (1+14%)^-2 ] + [ $3 (1+14%)^-3 ] + [ $3(1+5%) / (14%-5%) ] x (1+14%)^-4

Value of Stock = $1.85 + $2.02 + $20.72 = $24.59

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When the Writers Guild of America went on strike in 2007-2008, the union and studios met with a third party who helped continue
garik1379 [7]

Answer:

mediation

Explanation:

The Writers Guild of America and the film studios used a mediator when they started their negotiations. The mediator is an impartial third party that is present during the negotiations and tries to help both parties reach an agreement or settlement. The decisions taken by the mediator are not mutually binding so any party can accept or reject them. A mediator only helps to solve the problem, offers possible solutions, but shouldn't decide anything.

In order for the decisions taken by the third to be binding, the third party must be an arbitrator. In an arbitration process all parties involved must accept the decision of the arbitrator.

5 0
3 years ago
​Julia is a U.S. citizen. She establishes a website that posts threatening messages about celebrities. Her website is.
svlad2 [7]

Answer:

b. not protected by the First Amendment

Explanation:

Based on the information provided within the question it can be said that the Julia's website is not protected by the First Amendment. This is because the Supreme Court has never interpreted freedom of speech to allow the inclusion of obscenities. Which "threatening posts about celebrities" would fall under the category of obscenity and not be protected under the First Amendment.

4 0
3 years ago
a city or county’s master plan is an example of government land-use controls where the authority is derived from the government’
Elina [12.6K]

it is derived from the government’s Police Power  According to United States constitutional law, the police power is the ability of the states to control conduct and uphold law and order on their soil for the benefit of their citizens' general welfare, safety, morals, and general well-being.

<u>What </u><u>elements </u><u>make up </u><u>police power?</u>

  • The use of police authority has historically entailed the ability to
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To Learn more about police power, click the links.

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4 0
1 year ago
A.8<br>B.15<br>C.26<br>D.52<br><br><br><br>if anyon can help i would be so happy
Alika [10]
I think the answer is D.52
3 0
3 years ago
Diz Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Swiss francs. These two currencies are highly
VikaD [51]

Answer:

Yanta Co. has a higher exposure to exchange rate risk than Diz Co.

The reason is that Yanta Co. does not have net inflows of euros.  Instead, its euro transactions yield net outflows.

It will always be in need of euros to settle its foreign debts or obligations, unlike Diz Co. with foreign assets.

Explanation:

a) Data and Analysis:

Diz Co. has net cash inflows of euros and net cash inflows of swiss francs

Yanta Co. has net cash outflows of euros and net cash inflows of swiss francs

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5 0
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