Answer:
The current share price is $82.85
Explanation:
D1 = (2.85*1.25)
= 3.56
D2 = (3.56*1.25)
= 4.45
D3 = (4.45*1.25)
= 5.566
Value after year 3 = (D3*Growth rate)/(Required rate - Growth rate)
= (5.566*1.045)/(0.105 - 0.045)
= $96.95
current price = Future dividend and value*Present value of discounting factor
= 3.56/1.105 + 4.45/1.105^2 +5.566/1.105^3 + $96.95/1.105^3
= $82.85
Therefore, The current share price is $82.85
Answer:
hope it's help you ok have a good day
Answer:
Net cash flows from financing activities is $24,000
Explanation:
Cash flow from financing activities:
Proceeds from stock issue $20,000
Dividends ($5,000)
Sale of treasury stock $9,000
net cash flow from financing activities $24,000
The issue of long-term note payable of $35,000 does not involve an actual movement of cash,hence has zero impact on the cash flow from financing activities.
The dividends payment has negative sign because it is an outflow of cash unlike others that cash inflows.
Answer: The correct answer is "a. Review sites."
Explanation: Review sites are those websites where users can provide their opinion through a brief review or a score on a particular product or service. This tool provides information to potential new customers about the quality of the product or service they are looking for, it also serves the producers of goods or services to know how they can improve.
Answer:
The group of people that will launch Kathy's firm is called New Venture Team
Explanation:
As per the definition, a new venture team can be understood as a group of people who are -
- Founders
- Advisors
- Key employees
of some already existing firm and plan to develop a separate new firm which is fully functional as a new firm.
In the question the people in the group are already a member of some firm and prepared to launch a new firm so this group will be termed as new venture team.
