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padilas [110]
4 years ago
7

Good Investments Company forecasts a $1.74 dividend for 2017, $1.87 dividend for 2018 and a $1.98 dividend for 2019 for Mountain

Vacations Corporation. For all years after 2019, Good Investments Company forecasts that Mountain Vacations will pay a $2.10 dividend. Using the dividend discount valuation model determine the intrinsic value of Mountain Vacations Corporation, assuming the company's cost of equity capital is 7%. Select one: A. $24.48 B. $18.12 C. $27.91 D. $29.37
Business
1 answer:
Alex17521 [72]4 years ago
5 0

Answer:

The correct option is D,$29.37

Explanation:

The intrinsic value of the company is the present value of the dividends plus the present value of the terminal value in year 3

present of dividends=$1.74/(1+7%)+$1.87/(1+7%)^2+$1.98/(1+7%)^3=$ 4.88  

Terminal value=dividend after year /cost of capital

                       =$2.10/7%=$30

present value of terminal value=$30 /(1+7%)^3=$ 24.49  

Note that the discount factor of year 3 is applicable to the terminal value as well.

sum of present value of dividends and terminal value=$ 24.49+$4.88=$29.37

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The consumer decision making process is comprised of these five steps: Need recognition, Environmental Scanning, Evaluation of a
Goshia [24]

Answer:

need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior

Explanation:

In simple words, A consumer refers to an individual who acquire a resource in exchange of money or some other resource, to satisfy his or her needs.

The customer decision-making process involves consumers becoming aware of and identifying their interests, gathering input about how to better meet those needs, weighing alternative possible choices, making a buying judgment as well as evaluating their investment.

5 0
3 years ago
How do the elements of the marketing mix work together to help create a<br>marketing strategy?​
alex41 [277]

Answer:

The marketing mix refers to the actions a company takes to market its product(s) and/or service(s). Typically, it acts as a framework for breaking down the four key components of marketing — product, price, place, and promotion.

Explanation:

4 0
3 years ago
Darby's company reported net income after taxes of $2,000,000, on sales of $225 million. her boss asked her to calculate the ear
Dafna1 [17]
Darby's correct response is $0.045 per share.
Because we can calculate earnings per share by taking net income after taxes and then dividing it by the total number of common shares that are issued.
Income after taxes = <span>$2,000,000
shares = $44,000,000
Earnings per share = $2,000,000 / $44,000,000
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3 0
3 years ago
Alternative workplaces are intended to a. limit the flexibility employees have in scheduling work. b. accommodate a narrower ran
Eduardwww [97]

Alternative workplaces are intended to enhance employee motivation and performance.

<h3>What is alternative workplace?</h3>

Alternative workplace are provisions made b a company to its employees, to carryout their routine duties other than their normal offices. This tends to give freedoms to workers in carrying out their duties.

The purpose of alternative workplace is to break the bond between workplace and work performance.

Hence, alternative workplaces are intended to enhance employee motivation and performance.

Learn more about alternative workplace here : brainly.com/question/20412413

6 0
2 years ago
Each month, Burrel Incorporated produces 500 units of a product that has unit variable costs of $22. Total fixed costs for the m
Gnom [1K]

Answer:

difference between the offered price and the variable cost per unit

Explanation:

The contribution margin per unit of a product is the difference between the selling price per unit and variable cost per unit. The contribution margin per unit shows the amount available from each unit sold that cater to fixed costs and profits. A higher amount of contribution margin is desirable as it assures that each unit sold is contributing to profitability.

When the variable costs are more than the selling price, it means a business is not meeting any of its costs. The firm is running at a loss and is likely to close down soon. Before accepting or rejecting the special offer, the business should compare the proposed price and variable costs. If the contribution margin is positive, then the order should be considered.

5 0
3 years ago
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