Answer:
Price of stock = $74.636
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>
<em>The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity</em>
<em>Present value of dividend from year 1 to 8</em>
The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )
<em>A- dividend payable now , r- required of return, g-growth rate, number of years</em>
PV = 1.52×(1.19)/(0.1-0.19) × (1 -(1.19/1.1)^8)= 17.605
<em>PV of Dividend from year 9 and beyond:</em>
<em>P = D× g/(r-g) </em>
<em>This will be done in two steps:</em>
Step 1: PV(in year 8)of dividend = (1.52× 1.19^8× 1.05)/(0.1-0.05)= 122.250
Step 2 : PV in year 0 = 122.25× 1.1^(-8)= 57.030
Price of stock = 17.60 + 57.030= 74.63
Price of stock = $74.636
1 what will be produced?
2 how will it be produced?
3 how will the output society produces be distributed?
Answer:
workplace in New York City and delivered a summons to appear in court in Maryland. The lawsuit against her relates to property damage that occurred in a home sh rented in New Jersey, which
Answer:
(B) a cash cow
Explanation:
Based on the information provided within the question it can be said that in this scenario AI Rubber would be considered a cash cow. This term refers to a business and/or product that generates a steady revenue or profit for the owning company or individual. Since AI Rubber has a 45% market share we can say that they are the cash cow of the corporation.