Answer:
The answer is: The current share price is $47.96.
Explanation:
The current share price is equal to the present value of its expected dividend stream discounting at required return rate of 16%.
We have the dividend stream as followed:
Year 1: $22.00; Year 2:$10.00; Year 3: $8.20; Year 4: $2.80; Year 5: $2.80 * 1.05 = $2,94 and will be growing at 5% constantly afterward ( as dividend will be growing at 5% per year from Year 4 afterward).
So, the current share price is equal to:
22/1.16 + 10/1.16^2 + 8.2/1.16^3 + 2.8/1.16^4 + [Present value as at the end of year 4 of growing perpetuity which is dividend payment after year 4] / 1.16^4 = 33.20 + [ 2.94 / ( 16% - 5%) ] /1.16^4 = $47.96.
So, the current share price is $47.96.
Answer:
Does a high value of our Diversity Index mean the site is more diverse or less diverse?
It is more diverse...
diversity index has to do with increase in quantity of data available, an increase in such diverse index makes it to be more diverse
Explanation:
i think it's" B" , from the explanation!
Explanation:
Free trade increases the size of the economy as a whole. It allows goods and services to be produced more efficiently. ... Free trade is good for consumers. It reduces prices by eliminating tariffs and increasing competition. Greater competition is also likely to improve quality and choice.
Answer: a. DN
Explanation:
The Minimum Acceptable Rate of Return (MARR) which is also known as the Hurdle Rate is the rate of return that will be earned by an investment to ensure that it will cover its cost.
This means that below the MARR, the project will bring in less than the costs it incurred. This is therefore not ideal.
The rate of return on each increment was less than the MARR of 17% which means that they are not profitable.
The company should not invest or rather Do Nothing.