Answer:
The stock should sell for = $2.01
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 model is given as </em>
P = D× g/(r-g)
P- stock value, g- growth rate , r-m required rate of return
PV of dividend in year 30 = 12/(0.15- 0.06)=133.3333333
PV of dividend in year in year 0 = 133.3333333 × 1.15^(-30)= 2.01
The stock should sell for = $2.01
Answer:
The correct answer is C
Explanation:
Neo-classical economists is the one who believe or perspective is on the importance of the aggregate supply which should be for long run. And its first and foremost concern is that to maximize the personal satisfaction.
He emphasize or focus on the importance of supply in order to determine or evaluate the macroeconomy size which should for the period of long run.
Explanation:
The goods refer to the items, products, of the company which the company sells to the customer so that the company could able to maximize its revenues and generated a maximum profit in a year
The goods can be depended upon the nature of the business
Suppose we take an example of accessories used in a mobile-like - data cable, earphone, headphone, earbuds, back cover, etc
The other examples are Food, clothing, traveler bags, furniture, etc.
Answer:
c. Do nothing with the information. The statistics reported are invalid
Explanation:
Answer:
The stock will be correctly priced at $54.39
Explanation:
we solve for the value of the dividends using the gordon model:
(10 x 1.05) / (0.115 - 0.05) = 161.5384615
ow, as this is 10 years into the future we have to discount this for 10 years:
Maturity $161.5385
time 10.00 years
rate 0.11500 (we use the required rate of return)
PV 54.3910
The stock will be correctly priced at $54.39