Answer:
$38.375
Explanation:
In this question, we apply the Gordon model which is shown below:
Maximum price = Next year dividend ÷ (Required rate of return - growth rate)
= $6.14 ÷ 0.16
= $38.375
We simply divide the dividend rate by the required rate of return so that the accurate and maximum price can come. The growth rate is not given so we do not consider it.
Answer:
The correct answer is venture capitalists generally have an exit strategy
Explanation:
Venture capitalists are private individuals that make funds available to high growth startups in exchange for equity stake in the company.
Venture capitalists usually have an exit plan, in that their investment for short to medium term,as they intend to dispose their investment when it is most profitable to do so,with aim of reaping high returns overall on their initial investment.
Venture capital is not easy to obtain, as a business must show signs of high growth in near future to attract venture capitalists.
Venture capitalists do not invest in all forms of businesses as they only place their funds in selected business ventures
Answer:
the net cash flow will be negative for the amount of $141 this means the stockholders contributed to the firm with cash rather than the firm providing cash for them.
Explanation:
<u><em>cash inflow:</em></u>
555 cash idividends
<u><em>cash outflow:</em></u>
9,336 ending capitalization - 8,640 beginning capitalization = 696
the stockholder purchases shares for that amount.
net: -141
