Answer:
The correct choice is C)
The most logical thing to do would be to calculate the value of the stock in 5 years time.
Explanation:
This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.
The formula for the DDM, which assumes constant growth in dividends, is provided below.
P0 = D1/(r-g)
Where,
P0 = intrinsic value of stock
D1 = dividend payment one year from today
r = discount rate
g = growth rate
Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:
t0 = $0
t1 = $0
t2 = $0
t3 = $0
t4 = $0
t5 = $0.20
t6 = $0.20 * 1.035
Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.
Based on the information above, we are able to prove that the answer is '5'.
Cheers!
Answer:
c. you need a lot of money to buy a home
Explanation:
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D. $2,333,572
To find the future value of annuity ordinary the formula is
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value?
PMT payment per year 3000
R interest rate 0.1025
N time 45 years
So
Fv=3,000×(((1+0.1025)^(45)−1) ÷(0.1025))=
<h2><u>$2,333,571.66
</u></h2>
Good luck!
Answer:
The aggregate investment of the project is $1,000,000
Explanation:
Total or the aggregate investment is the term which is described as the amount of money which a person or a company needed or required to complete the task, work or the project.
In this situation, the project needed a purchase of equipment which is worth $1,000,000 due to which there is increase in inventory as well as increase in accounts payable. Therefore, the total investment amounts to $1,000,000.As the equipment is the necessary item in order to complete the project and due to which the inventory rise and also the equipment is purchased on credit because of which the accounts payable also increase.
Answer:
Starting at equilibrium point D, if the cost of inputs rises, the short-run equilibrium will move to the point B, and thus real output will Decrease and the price level will Increase.
Explanation:
This means it will go down but the price is gunna increase.
-<em>Hope This Helps!</em>
<em>-Justin:)</em>