Answer:
The price of the stock today is $34.13
Explanation:
The price of the stock that grows at two different growth rates can be calculated using the two stage growth model of DDM. The DDM requires to discount back the dividends to calculate the price of the share today.
The price of the stock today is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
P0 = 1.8 * (1+0.08) / (1+0.11) + 1.8 * (1+0.08)^2 / (1+0.11)^2 +
1.8 * (1+0.08)^3 / (1+0.11)^3 + [ (1.8 * (1+0.08)^3 *(1+0.05) / (0.11-0.05)) / (1+0.11)^3]
P0 = $34.127 rounded off to $34.13
Because the consumers are losing jobs, which leads to less purchases. Hope this helps!
Answer:
Single Equivalent Discount % on final price = 41.58%
Explanation:
- The grill was initially priced at $769.99 and was discounted to $550.54 which is 28.5% ((550.54/769.99)-1)*100
- and then further discounted by 18.3% ((449.79/550.54)-1)*100 to $449.79.
but if we want to get the single discount rate for $449.79 (final price), we have to compare it with very first original price of $769.99 so the formula will be:
- ((449.79/769.99)-1)*100 = 41.58% which shows the actual discount % versus the original price of the grill.
Answer:
Fink's revenue from insurance premiums for the current year is: $13,500,000
Explanation:
Insurance premiums recognised for the current year -
Insurance collected + Beginning Deferred premiums account - Ending Deferred premiums account
= $ 17,900,000 + 4,000,000 - 8,400,000 = $13,500,000
Blake bliss is 22 years old
