Answer:$10,350
Explanation:
3,450* 3 (month minimum) = 10,350
Answer:
P0 = $51.9956 rounded off to $52.00
Explanation:
The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.
The formula for price of the stock today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]
Where,
- D0 is the dividend today or most recently paid dividend
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 8%
- r is the required rate of return
P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +
2.5 * (1+0.2)^3 / (1+0.15)^3 +
[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)
P0 = $51.9956 rounded off to $52.00
Answer:
create rituals to demonstrate the company's efforts to support sustainability action.
Explanation:
If a company wants to incorporate a culture of sustainability in its organization it should bring everyone on board with its goals.
Defining a culture in an organization is difficult and in intangible. Company should involve employees to clearly express its views about sustainability and create a culture to support company's efforts toward sustainability actions.
Answer:
Find attached question containing the cash flows under the purchasing option,note that the discount rate in the attached is 7.1% but the main question has 6.9%,hence I would make use of 6.9%
The present value of leasing option is lower,hence it is preferred.
Explanation:
The cash flows under the purchasing option is $39,200 now and $2000 each year for 5 years.
In determining the better of the two options we determine the present value of each option as follows:
leasing option=$10,100/(1+6.9%)^1+$10,100/(1+6.9%)^2+$10,100/(1+6.9%)^3+$10,100/(1+6.9%)^4+$10,100/(1+6.9%)^5=$ 41,523.11
Purchase option=$39,200+$2000/(1+6.9%)^1+$2000/(1+6.9%)^2+$2000/(1+6.9%)^3+$2000/(1+6.9%)^4+$2000/(1+6.9%)^5=$ 47,422.40
