Answer: $50
Explanation:
We can use the Gordon Growth Model of Stock Valuation. The formula is thus,
P = D1 / r – g
D1 = the annual expected dividend of the next year
r = rate of return
g = the expected dividend growth rate (assumed to be constant)
There is no growth potential and dividends are expected to stay the same so no growth rate and D1 will be the same as D0.
Plugging that into the formula therefore will give us
P = D1/r
P= 4.5/0.09
= $50
Current Stock Price is $50.
A tomatoes cost more than the other tomatoes in this produce department because the cost of production is higher.
<h3>Why will product cost more?</h3>
A product can cost more when the demand for the product is high thus increasing the price of the product.
A product can cost more if the cost of production is higher than any other products.
Therefore, tomatoes cost more than the other tomatoes in this produce department because the cost of production is higher.
Learn more on demand here,
brainly.com/question/1288364
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You should sturter allot or say the same word over again
Maximize shareholder value.
