How can a company take advantage of viral diffusion in a rapidly growing market?

Sew ‘N More just paid an annual dividend of $1.42 a share. The firm plans to pay annual dividends of $1.45, $1.50, and $1.53 ove

andre [41]

Answer:

Stock Worth Today: $3,71 + $10,93 = $14,64

Stock Worth Today: Present Value (3 Next Years) + Present Value (Perpetuity)

Explanation:

We need to apply two financial methods to find the value of the shares today.

First, the Present value formula for the next 3 years, and for the rest we apply the Perpetuity formula, then to the result of Perpetuity we apply the Present Value because it's expressed in values of Year 4.

Present Value Formula : C/(1+r)^t to each cash dividends each year.

Perpetuity Formula : Dividend / r

PV of the perpetuity = Periodic cash inflow/ Interest rate

Perpetuity = 1,60/ interest rate

Perpetuity = 1,60/ 0,10

Perpetuity = $16

The Perpetuity it's expressed at the moment of Year 4, we need to discount the Perpetuity to the current time:

Present Value Formula : C/(1+r)^t = 16/(1,10)^4 = $10,93

PV of the the next 3 years dividends.

Present Value = 1,45/(1+0,1)^1 + 1,50/(1+0,1)^2 + 1,53/(1+0,1)^3

Present Value = 1,32 + 1,24 + 1,15

Present Value = $3,71

7 0

3 years ago

What is the Racial Wealth Gap?

Gemiola [76]

Explanation:

the racial wealth gap in the United States is the disparity in median wealth between the different races . This gap is most pronounced between whitehouseholds and racia minorities

5 0

2 years ago

Leah and Mason are parties to a contract for the sale of Mason’s day care facility to Leah. Before the deal closes, they agree t

vladimir2022 [97]

Answer:

The correct answer <em>is performance of original contract by all of the parties.</em>

Explanation:

The perfection of a contract is the moment at which it begins its existence, validity and validity, being binding from that moment to the parties that have signed it.

The phases through which a contract passes from its gestation to its termination are:

- The generation.

- The perfection.

- The consummation.

4 0

3 years ago

The geographic principle under which particular peoples and particular places concentrate on the production of particular goods

natita [175]

Answer: local functional specialization

Explanation:

The geographic principle under which particular peoples and particular places concentrate on the production of particular goods is known as local functional specialization.

Local Functional Specialization was actually Europe's economic hallmark which spread to many parts of the world later whereby some specific people in some certain places would concentrate on production of certain goods and services.

4 0

3 years ago

If a brand manager for honda creates an offbeat and funny video featuring its latest model, the best social networking site to p

irinina [24]

<span>Given the theory that, the goal of brand management is to keep a brand image that is appealing to as many potential buyers as possible. The key to accomplishing this goal of course being, exposure of the appealing brand marketing to the potential buyers. I think you tube would be best.</span>

5 0

3 years ago