Answer:
In order to find the intrinsic value of a stock using the dividend discount method we need to know its growth rate, its last dividend and its required return. When we know these 3 things we can use them in the formula which is
Intrinsic Value = Dividend*(1+Growth Rate)/(Required return - Growth rate)
In this case we know all three of these values which are
D= 3
G= 3%
R= 17%
We will put these values in the formula in order to find the intrinsic value of the stock
3*(1+0.03)/(0.17-0.03)=22.07
The intrinsic value of the stock is $22.07
Explanation:
the answers are
1. Current members will pay more per month.
2. The quantity demanded for memberships will decrease.
4. The owner will make more money.
hope this helps :)
The reason why it is difficult to track the crime rate over time it is because as time or years pass, the definition of crime changes. Leading to difficulty of tracking crime rates and organizing records in keeping track of the crime rates. There is no consistency in terms of defining crimes as years pass for beliefs and the way of ruling changes, leading to difficulty and unorganized process or methods.
Answer:
b. 3.70 percent
Explanation:
Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.
Expected rate of return = SUM (probability *return)
Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%
Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%
Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%
Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;
= 1.5% + 2.8% -0.6%
= 3.7%
Therefore, the correct answer is choice B.