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Vlad1618 [11]
3 years ago
11

Low Fly Airline is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of 15% per ye

ar. The required return is 30%. What is the intrinsic value of the stock?
Business
1 answer:
Bond [772]3 years ago
4 0

Answer:

Intrinsic value of the stock = $46.67

Explanation:

D1 = $7

Required return = 30%

Growth rate = 15%

Intrinsic value of the stock = D1 / (Required return - Growth rate)

Intrinsic value of the stock = $7/(0.3 - 0.15)

Intrinsic value of the stock =  $7 / 0.15

Intrinsic value of the stock = $46.67

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Answer
I think it’s D
Explanation
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A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly s
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exporting

Explanation:

The exporting refers to the trade in which the goods and services are produced and sold to the another country. In this, the person who sells the goods and services is known as exporter while the foreign buyer who buyed the goods and services is known as importer

According to the given situation, the company is looking for growth opportunities and it is a fairly small company. Moreover it focused on exporting the goods and services

Hence, the option C is correct

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3 years ago
Control based on the use of pricing mechanisms and economic information is referred to as:
soldier1979 [14.2K]
It is referred as market control<span />
3 0
3 years ago
As a general rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of
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Answer:

A. last; equal to

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A profit maximising firm would produce up to a point where the marginal product of last factor enjoyed in equal to the factor's price.

The marginal cost of Labour should equal to the marginal product of labour

4 0
3 years ago
A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold th
AleksAgata [21]

Answer: 21%

Explanation: The developer purchased 3 properties and he can buy each property for $20 per square foot.

Therefore: 75 × 110 =8250 square feet.

8250 × $20 = $165 000 per lot.

Each lot was sold for $200 000. Which means the developer made profits of:

$200 000 - $165 000 = $35 000 per lot.

The percentage of profit on each lot is:

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= \frac{35 000}{165 000}

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3 years ago
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