Answer:
Ans. the value of the stock today is $6.31
Explanation:
Hi, we need to bring to present value all the cash flows of this stock, that is bringing to present value the cash flows from year 1 through 6 and the horizon value which is the value in year 6 of the cash flows from 6 and beyond.
The formula to use for the dividends from year 1 - 6 is:
Where:
r = is the discount rate
n = number of consecutive dividends
And the present value of the horizon value is:
So everything together is:
Now, the numbers
So based on the future cash flows of this share, its fair price is $6.31
Best of luck.
Depending on your state, it can go towards county taxes (e.g. Fire Protection, School Maint. Op.) Or it can go to state for transportation and other funds.
Answer:
departmentalization
Explanation:
Departmentalization is defined as the process of grouping various activities according to departments.
Each department tends to specialise in the assigned activity. This method promotes division of labour where a group of people specialise in one activity.
In the given scenario James is restructuring operations around three product lines to increase speed and effectiveness of decision making.
This is departmentalization with a view of increasing process efficiency
