Using the Gordon Growth Model (a.k.a. Dividend Discount Model), the intrinsic value of a stock can be calculated, exclusive of current market conditions. In this model, the value of the stock is equated to the present value of the stock's future dividends.
<span>Value of stock (P0) = D1 / (k - g)
</span>where
D1<span> = </span><span>expected annual </span>dividend<span> per share in the following year </span>
<span>k = the investor's discount rate or required </span>rate of return
g = the expected dividend growth rate
<u>From the problem:</u>
The value of stock is $10.80
D1 is $0.40
g is 0.08
k is unknown
Solution:
Rearranging the equation for Gordon Growth Model to solve for k:
k = (D1/P0) + g
Substituting the variables with the given values,
k = (0.40/10.80) + 0.08
k = 0.1170
In percent form, this is
0.1170 * 100% = 11.70%.
Thus, the total rate of return on the stock is 11.70%.
Answer:
its B don't listen to stupid people
Explanation:
Answer:
The answer is: A) Destiny did not state a claim for which relief can be granted.
Explanation:
A motion to dismiss is a request made by a party involved a court case (usually the defendant) that seeks to make the court dismiss the case. It can be filed on a variety of grounds based on legal deficiencies. One of the common grounds for filing a motion to dismiss is:
- Failure to State a Claim for Which Relief Can Be Granted: A plaintiff must comply with several requirements in order to file a complaint, including a valid cause of action. A motion to dismiss may be granted if the plaintiff fails to adequately allege all of the elements of the claim or if the complaint fails to allege a measurable injury.
both of the above are undermine the private sector.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
On October 1, 2014, Mann Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= 60,000/5=12,000
3 months depreciation= 12,000/12*3= 3,000
