Answer:
The correct choice is C)
The most logical thing to do would be to calculate the value of the stock in 5 years time.
Explanation:
This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.
The formula for the DDM, which assumes constant growth in dividends, is provided below.
P0 = D1/(r-g)
Where,
P0 = intrinsic value of stock
D1 = dividend payment one year from today
r = discount rate
g = growth rate
Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:
t0 = $0
t1 = $0
t2 = $0
t3 = $0
t4 = $0
t5 = $0.20
t6 = $0.20 * 1.035
Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.
Based on the information above, we are able to prove that the answer is '5'.
Cheers!
Answer:
- government contracting
- advocacy
- entrepreneurial development
- access to capital
Explanation:
SBA is a US government agency whose core mandate is to support the growth of small businesses. The Small Business Association(SBA), promotes economic growth by providing useful resources and information to help them start and develop small businesses.
The SBA supports the advancement of small businesses in the following ways.
- Education and training,
- Providing information and links to affordable credit
- Connecting to government contracts
- Offering business advise
Pros:
No one can stop you from picking that person/place/thing.
Cons:
you don't know what to decide.
Answer:
d) Purchasing $18,000 (000) worth of plant and equipment
D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.
Explanation:
<em>Missing information:</em>
a) A $5 dividend
b) Liquidate the entire inventory
c) Retiring the oldest bond
d) Purchasing $18,000 (000) worth of plant and equipment
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A) dividends would not be the cause as they are determinated by the company they can chose not to declare it.
B) lquidate the inventory means selling and not replenish. This generates cash it doesn't use cash
C) re-rolling the debt (by issuing new bonds) is a course of action planned and that in hte end will not affect the cash of the company as will be paying the bonds and receiving from the new bonds thus the changes in cash would be controlled.
D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.
<span>Small businesses are hesitant to involve in global business because it involves various trade laws or tariffs. Taking that kind of plunge in the business world for a business of small scale is risky situation or at least the small business owners feel. Sometimes this would be the turning point for these businesses to break out huge.</span>
