Answer:
If opportunity cost is 5%, PV=10,366.05
If opportunity cost is 6.5%, PV=9,934.19
If opportunity cost is 11.5%, PV=8,656.79
Explanation:
PV=Σ
If opportunity cost is 5%: PV = =10,366.05
If opportunity cost is 6.5%: PV = =9,934.19
If opportunity cost is 11.5%: PV = =8,656.79
Answer:
There's an error in the numbers for this question; I found the correct one and pasted it below;
"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "
Explanation:
Use dividend discount model (DDM) to calculate the stock price
whereby,
P0 = Current price
D0 = Last dividend paid = 130
g = growth rate = -275% or -2.75 as a decimal
r = required return = 155% or 1.55 as a decimal
Next, plug in the numbers to the DDM formula above;
Therefore this stock is worth $6.93
Answer:
B. inform her divisional merchandiser manager of the proposal
Explanation:
Since in the question it is mentioned that the Janine buys from each season also she knows that this thing would become benefiical what European tourists are wearing and applying this in an assortment for the customers that are targeted
So before discussion with the vendor first she reports the divisional merchandiser manager regarding this proposal
