Answer:
The price of the stock today will be $66.19
Explanation:
To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,
P0 = D1 / r - g
We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.
P8 = 14.25 * (1+0.06) / (0.14 - 0.06)
P8 = $188.8125
The price of the stock today will be,
P0 = 188.8125 / (1+0.14)^8
P0 = $66.189 rounded off to $66.19
Answer:
The correct answer is letter "C": Critical Thinking.
Explanation:
Critical Thinking is the type of thinking that allows individuals to discriminate and have a particular judgment over a specific matter. It helps by determining accuracy and validity on that topic by gathering a certain quantity of information to then highlight the most relevant.
Answer:
Nonprofit companies as the name implies are those that work through donations made by certain entities. If it is known that a non-profit company does not know how to manage its resources, then these entities or individuals who want to make donations for the cause, will not do so because the idea is that the purpose of the association is fulfilled.
For example if a company donates medical equipment to a hospital and instead of medical equipment they buy a car then we would be saying that they would not be taking advantage of resources
Answer: predatory pricing
Explanation: In simple words, it refers to a pricing strategy in which the organisation price its goods very low with the objective of capturing the whole market and forcing to leave the other competitors.
In the given case, Lofonitt captured the mp3 market by offering lower price [products leading to failure of their competitors.
Hence we can conclude that they were indulged in predatory pricing.
