Answer:
Present value = $9.7150 rounded off to $9.72
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3 + D4 / (1+r)^4
Where,
- r is the required rate of return
Present value = 3 / (1+0.14) + (3+0.25) / (1+0.14)^2 +
(3+0.25+0.25) / (1+0.14)^3 + (3+0.25+0.25+0.25) / (1+0.14)^4
Present value = $9.7150 rounded off to $9.72
This question is true, as business continue to prosper and grow. Many investors would want to invest into a stock market like a gamble or a faster way to gain more money, based on how you trust your stock market.
I use my credit card to help my friends buy stuff they cannot afford
Answer: B. Lower Taxes and increase in spending
Explanation:
Recession is a period of less productive activity , demand deficiency , deflationary gap .
Fiscal Solution is that approach to solve such issues - which uses government budgetary elements (tax , govt spending /subsidy) to adjust excess / deficient demand
To correct the demand lack while recession , government should - Reduce Taxes , Increase govt spending / subsidy . So that ,people's disposable income & hence their demand increases .
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