Answer:
$24.18
Explanation:
Dividend for year 0 = $2.2
Dividend at year end 1 = $2.2
Dividend at year end 2 = $2.2(1 + .05) = 2.31
Dividend at year end 3 = $2.31 (1 + .05) = 2.4255
Dividend at year end 4 = $2.4255 (1 + .17)= 2.8378
Dividend at year end 5 = $2.8375 (1 + .09)= 3.0932
Dividend at year end 6 = $3.0932 (1 + .09) = 3.371
MPS = ![\frac{D_{1} }{(1\ +\ k)^{1} } + \frac{D_{2} }{(1\ +\ k)^{2} } \ +\ \frac{D_{3} }{(1\ +\ k)^{3} } \ +\ \frac{D_{4} }{(1\ +\ k)^{4} } +\ \frac{D_{5} }{(1\ +\ k)^{5} } \ + \frac{1}{(1\ +\ k)^{5} } [\frac{D_{6} }{(k\ -\ g)\ ]}](https://tex.z-dn.net/?f=%5Cfrac%7BD_%7B1%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B1%7D%20%7D%20%20%2B%20%5Cfrac%7BD_%7B2%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B2%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B3%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B3%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B4%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B4%7D%20%7D%20%20%2B%5C%20%5Cfrac%7BD_%7B5%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%5C%20%2B%20%5Cfrac%7B1%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%20%5B%5Cfrac%7BD_%7B6%7D%20%7D%7B%28k%5C%20-%5C%20g%29%5C%20%5D%7D)
where MPS = Market price of share
D= Dividend for different years
k = Cost of equity
g= constant growth rate after year 5
putting values in above equation we get,
MPS = 1.864 + 1.65 + 1.478 + 1.463 + 1.352 + 0.4371 × 37.462
MPS = $24.18
The maximum price per share that an investor who requires a return of 18% should pay for Home Place Hotels common stock is <u>$24.18</u>
Answer:
PV= $37,204.70
Explanation:
Giving the following information:
Interest rate= 6% compounded semiannually= 0.03
Future value= $50,000
Number of periods= 5*2= 10
To calculate the initial investment to reach the objective, we need to use the following formula:
PV= FV/(1+i)^n
PV= 50,000/(1.03^10)
PV= $37,204.70
Answer:
The correct answer is predictive validity test.
Explanation:
A predictive validity test is carried out in order to predict the performance that a collaborator will have in the future. With this dynamic, it is ensured that an honest employee is hired, and that he always acts under the rules of the organization to which he will belong. In general, there are discrepancies compared to what many people can do under certain circumstances, and this test is precisely what they want to know about the performance under different scenarios.
Answer:
Disruptive innovation.
Explanation:
Disruptive innovation is one that creates the way a market operates, that is it creates a new market and disrupts the old one. Existing firms and products are displaced.
In this instance when Futura Inc. introduced an automobile that could run completely on electricity for longer periods of time than any other electronic or hybrid automobile, it introduced a product that will cause disruptions in the current automobile industry.
Although there was challenges of frequent repairs, this was eventually resolved.
Answer:
28,000
Explanation:
To get this answer you have to assume perfect competition scenario, since in this case supply = demand. In this case:
At $7,5
Energizer sells 16,000 => Supply Energizer = 16,000
Duracell sells 12,000 => Supply Duracell = 12,000
Total Supply = 16,000+12,000
