Answer: $32.10
Explanation:
Here is the complete question:
What is the value of a stock which has a current dividend (D0) of $1.50, and is growing at the rate of 7%? The investor's required rate of return is 12%. a. $26.75
b. $30.00
c. $32.10
d. $21.42
e. $13.38
Current dividend =D0 = $1.50
Growth rate = g= 7% = 0.07
D1 = D0 × (1+g)
D1 = $1.50 × (1 + 0.07)
= $1.50 × 1.07
= $1.605
The value of the stock will then be:
P0 = D1 / (r - g)
P0= $1.605/(0.12 - 0.07)
P0 = $1.605 / 0.05
P0 = $32.10
<span>consume; recession; less; increase; The existing job helped him survive through new job search and avoid the recession effect on him and livelihood. This also has down side as he might be far from getting the new job as he would less motivated because of the existing job. This lack of motivation might waste his time in the job search.</span>
If you are an employee who is not working on a commission basis, then most likely, you are working as a salary based employee. Your salary would usually be based on your going rate or your market value to the employers. Based on your caliber, the employers will decide what your salary would be. For example, if you are a fresh grad, you will start with an entry level salary while if you are a manager, you will obviously be receiving a higher salary.
Answer: Option D
Explanation: In economics, inflation means the increase in the general price level of goods in an economy and the decrease in the value of money. This process occurs over a period of time.
In a scenario of inflation the purchasing power of the consumers decreases leading to a decrease in demand. Inflation could be controlled but is unavoidable and hence every economy faces some level of inflation every time.
Hence from the above we can conclude that the correct option is D.
Answer:
$7,120
Explanation:
Given that,
Assets = $85,900
Liabilities = $13,500
Fair value of assets = $90,500
Fair value of its liabilities = $13,500
Amount paid to acquire all of its assets and liabilities = $84,120
Net assets:
= Fair value of assets - Fair value of its liabilities
= $90,500 - $13,500
= $77,000
Goodwill = Purchase consideration - Net assets
= $84,120 - $77,000
= $7,120
