Answer:
a.
15%
b.
29.57
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach. The DDM values the stock based on the preset value of the expected future dividends from the stock. The price of the stock today under this model is,
P0 = D1 / r - g
Where
P0 = Price of stock
D1 = Future Dividend
r = Expected rate of return
g = Growth rate
a.
As we have the price of the price of the stock, we need to calculate the expected rate of return by extracting the formula.
r = (D1 / P0) + g
As per given data
P0 = Price of stock = $34
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
Placing Values in the formula
r = ( $3.4 / 34 ) + 0.05
r = 0.15 = 15%
b.
As per given data
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
r = Expected rate of return = 16.5%
Placing Values in the formula
P0 = D1 / r - g
P0 = $3.40 / (16.5% - 5%)
P0 = $29.57
Answer:
Express Warranty
Explanation:
Express Warranty -
It is a type of agreement by the seller in order to provide the replacement or repair the product , any service or component ,which is faulty , with in a given period of time frame , is known as express warranty .
The consumer gets the guarantee about the goods or service and feel secure about the purchase .
Hence , from the question , the term according to the given statement of the question is express warranty .
Answer:
-$1,035,000
Explanation:
The computation of the cash flows from investing activities is presented below:
Cash flows from investing activities
Loans made to affiliated corporations -$1,340,000
Add: Process from sale of equipment $305,000
Net cash used by investing activities -$1,035,000
The loan made is an cash outflow whereas the proceeds from sale of an equipment is cash inflow so we did the adjustment accordingly
Answer:
C) a local school district
Explanation:
Many school districts already carry out similar policies through Local School Wellness Policy programs. Malnutrition negatively affects kids the most and that is why school districts are currently trying to fight it. Malnutrition is not simply not eating enough food, it means not eating nutritious food at the right amounts. Obese children can suffer from malnutrition, while a slender kid can have a proper and balanced nutrition.
So if someone is seeking for a grant to fight malnutrition, they should go to their local authorities first and get in touch with the school district.
