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Blababa [14]
2 years ago
10

Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm w

ill, however, pay two liquidating dividends. The first will be paid one year from now in the amount of $17 a share. The second and final payment will be paid two years from now at an estimated $32 a share. What is the value of this stock today at a discount rate of 6 percent
Business
1 answer:
xz_007 [3.2K]2 years ago
4 0

Answer:

$44.52

Explanation:

The value of the stock today can be determined by finding the present value of the liquidating dividends

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 17

Cash flow in year 1 = 32

I = 6%

PV = $44.52

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Explanation:

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An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and ge
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3 0
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If the same number of units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two
andrey2020 [161]

Answer:

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It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.

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Eg : Good1    Good2     MOC [∆Good2/∆Good1]

      0               20             _        

      10             10           -10/10 = -1                  (10-20)/(10-0)

       20              0           -10/10 = -1                   (0-10)(/20-10)

So , same (1) good 2 is sacrifised to attain a good 1 each time.

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