Answer:
Current value per share is $13.33
Explanation:
The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,
P0 = D0 * (1+g1) / (1+r) + [ (D0 * (1+g1) * (1+g2) / (r - g2)) / (1+r) ]
Where,
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 5%
- r is the required rate of return
P0 = 1 * (1+0.2) / (1+0.14) + [ (1 * (1+0.2) * (1+0.05) / (0.14 - 0.05)) / (1+0.14) ]
P0 = $13.33
Answer:
<em>Explained below.</em>
Explanation:
<em>According to the current rules of the WTO(which is also known as World Trade Organization) and as well as GATT(which is known as The General Agreement on Tariffs and Trade),</em> the United States effort is been allowed as long as the subsidies(which is also known as government incentive) do not involve a direct payment to the industry.
It’s true !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!