Answer:
c. $76.48
Explanation:
The value of the stock is the present value of future cash flows
First, calculate each year's dividend
First year dividend = D1 = D0 x ( 1 + first year growth rate ) = $2.25 x ( 1 + 30% ) = $2.925
Second year dividend = D2 = D1 x ( 1 + Second year growth rate ) = $2.925 x ( 1 + 10% ) = $3.2175
Second year dividend = D3 = D2 x ( 1 + Second year growth rate ) = $3.2175 x ( 1 + 5% ) = $3.378375
Now calculate the present value of each year's dividend
Present value of D1 = D1 / ( 1 + required return )^1 = $2.925 / ( 1 + 9.00% )^1 = $2.6834
Present value of D2 = D2 / ( 1 + required return )^2 = $3.2175 / ( 1 + 9.00% )^2 = $2.7081
Present value of D3 = [ D3 / ( Required return - Growth rate ) ] / ( 1 + required return )^2 = [ $3.378375 / ( 9.00% - 5.00% ) ] / ( 1 + 9.00% )^2 = $71.0878
Now take the sum of the present value of all the dividends to calculate the value of stock
Value of Stock = Sum of Present value of all dividend = Present value of D1 + Present value of D2 + Present value of D3 = $2.6834 + $2.7081 + $71.0878
Value of Stock = $76.4793
Value of Stock = $76.48
Supply is the amount of specific goods and services that are available in the market to the consumers. The law of supply states that a higher price leads to increase in the quantity being supplied by producers or suppliers and a lower price leads to a lower quantity supplied. In this case when price of goods rises while maintaining other things constant, there is a movement up along the supply curve to a larger quantity supplied.
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Explanation:
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Answer:
credit default swap is a financial swap agreement that the seller of CDS will compensate the buyer in the event of a debt default or other credit event
Based on the information given his gross sales price will be:$69,149.
Gross sales price:
Using this formula
Gross sales price=Net price/(1-Broker's fee percentage)
Where:
Net price=$65,000
Broker's fee percentage=6%
Let plug in the formula
Gross sales price=$65,000/(1-6%)
Gross sales price=$65,000/94%
Gross sales price=$69,148.9
Gross sales price=$69,149(Approximately)
his gross sales price will be:$69,149.
Inconclusion his gross sales price will be:$69,149.
Learn more about gross sales price here:brainly.com/question/26103201
