Answer:
None of the options are correct as the price today will be $26.786
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach (DDM). The DDM bases the value of a stock on the present value of the future expected dividends from the stock.
The formula for price under constant growth model is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected for the next period
- r is the required rate of return or cost of equity
- g is the growth rate in dividends
However, as the constant growth rate in dividends is to be applied from Year 2 onwards, we will use the D2 to calculate the price at Year 1 and we will then discount this further for one year to calculate the price today.
P1 or Year1 price = 2 * (1+0.05) / (0.12 - 0.05)
P1 or Year 1 price = $30
The price of the stock today or P0 will be,
P0 = 30 / (1+0.12)
P0 = $26.786
Answer:
Explanation:
Firms still choose to go for an IPO for the following reasons;
1. Majorly, it is a means of generating revenue. Revenue is generated when stocks are sold to the public.
2. It is also a means of reducing risk, The cost of running the business is spread across many investors, so is the risk.
3. There is reduction of the overall cost of capital and gives the company a more solid standing when negotiating interest rates with banks.
4. Companies can easily offer up stocks instead of cash in the acquisition of other companies or in the case of mergers.
5. Having stocks listed on NSE is a means of public exposure
Investors choose to buy stocks of IPO firms because the initial offering is usually at a low rate since the firm is still small and relatively unknown. This stocks bought at a cheap rates have the chance of rising thus generating gains for the investors.
This statement "Marketing goods and services to the B2B market relies heavily on advertising than marketing efforts aimed toward the consumer market" is:True.
<h3>What is B2B marketing?</h3>
B2B marketing which full meaning is business to business marketing can be defined as the process in which business owners tend to focus on selling their products or goods to other businesses rather than their customers.
Based on this, companies or business owners prefers to advertise their goods and service to other business owners so as to make profit or generate revenue.
Inconclusion the statement is true.
Learn more about B2B marketing here:brainly.com/question/26506080
When managing real estate transactions, real estate licensees can protect themselves by documenting and disclosing pertinent information.
Record and reveal important facts. Hint: Doing everything in their power to protect themselves is the only option for professionals who seek to advance and thrive in their chosen vocation. Documenting the disclosure of material facts, or information that could have an impact on the property's worth or desirability, is one way to accomplish this. The Borrower is not aware of any significant information that has not been provided to the Agent but that, in the event that it had been, could have reasonably been expected to have influenced a person's decision to make lending facilities of the kind contemplated by this Agreement.
Learn more about disclosing pertinent information here.
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Answer:
The Income Statement is-
Sales = $435,000
Costs = 216,000
Depreciation = 40,000
EBIT= $179,000
Interest = 21,000
EBT = $158,000
Taxes = 55,300
Net income = $102,700
I have done this question before in my "Money Management" Dual enrolled class.
:)
