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Dafna11 [192]
3 years ago
13

ECONOMY

Business
1 answer:
timofeeve [1]3 years ago
7 0
1. False.
2. True
3. True
4. True
5. False
6. False
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Over the next three years, Distant Groves will pay annual dividends of $.65, $.70, and $.75 a share, respectively. After that, d
olganol [36]

Answer:

The share is worth $5.68 today.

Explanation:

The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.

The following is the formula for the price of the stock today,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  + ... +  Dn / (1+r)^n  +  Terminal value / (1+r)^n

The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes constant, like in this case, the terminal value is calculated as follows,

Terminal value = Dn * (1+g) / r - g

Where,

  • g is the Constant growth rate in dividends

So, the price of this stock today is,

P0 = 0.65 / (1+0.145)  +  0.70 / (1+0.145)^2  +  0.75 / (1+0.145)^3  +  

((0.75 * (1+0.02) / (0.145 - 0.02)) / (1+0.145)^3

P0 = $5.678 rounded off to $5.68

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3 years ago
Why do some companies state their core values but make little effort to ensure that individual personnel and the company in gene
Keith_Richards [23]

Answer:

The importance maxim just serves to make the business look good .

Explanation:

  • Throughout recent years, the once common image of ethics as individualistic, unchangeable and impervious to corporate pressures did not stand up to inspection.
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4 years ago
To save time, try a test solution after your first interview
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What is the question? There is no question in this statement.
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When a company's only potential common shares are convertible bonds:A. Diluted EPS will be greater if the bonds are actually con
geniusboy [140]

Answer:

Correct answer is (C)

Explanation:

Diluted EPS will be the same whether or not the bonds are converted.

Earning Per Share EPS

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________ assesses the consistency of observations by different observers.
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</span>in statistics, inter rater reliability agreement will determine similar measurements for several statistics.By doing this, the statistics could be done faster without having to compromise its consistency
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4 years ago
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