Answer:
The current price per share is $84.16
Explanation:
The dividend discount model (DDM) estimates the value of a share/stock based on the present value of the expected future dividends from the stock. We will use the two stage growth model of DDM here as the growth in dividends of the stock is divided into two stages.
The formula for current price under two stage growth 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,
g1 is initial growth rate
g2 is the constant growth rate
r is the required rate of return
So, the price of the stock today will be,
P0 = 2.05 * (1+0.24) / (1+0.11) + 2.05 * (1+0.24)^2 / (1+0.11)^2 +
2.05 * (1+0.24)^3 / (1+0.11)^3 + [( 2.05 * (1+0.24)^3 * (1+0.07)) / (0.11 - 0.07)] / (1+0.11)^3
P0 = $84.1556 rounded off to $84.16
Answer:
The answer is below
Explanation:
The technical and socio-cultural dimensions of project management are two sides of the same coin because while they are different, they serve the same purpose. Project managers need to possess and apply both skills to be successful in project management.
The technical dimensions of project management include stuff like the scope of work, time duration, resource allocation, etc. In contrast, the sociocultural dimensions of project management have organizations' cultures and values. Both of which are essential to a project management success
Answer:
$366,287.15
Explanation:
Annual salary = $32000
No. of years (n) = 30 years
Increment in salary = $600
Deposit rate = 10%
Interest rate (r) = 7% or 0.07
Growth rate (g) = Increment in salary \div annual salary
Growth rate = $600 \ $32000
Growth rate = 0.01875
First deposit = $32000 x 10% = $3200
Future worth = [First deposit \ (r - g)] x [(1 + r)n - (1 + g)n]
Future worth = [$3200 \ (0.07 - 0.01875)] x [(1 + 0.07)30 - (1 + 0.01875)30]
Future worth = [$3200 \ 0.05125] x [(1.07)30 - (1.01875)30]
Future worth = $62439.0243902 x [7.6122550423 - 1.7459373366]
Future worth = $62439.0243902 x 5.8663177057
Future worth = $366287.15
Hence, the future worth at retirement is $366,287.15
Answer: Monopolistic
Explanation: In simple words, monopolistic refers to a structure under which the industry constitutes many producers that sells differentiated products and no one product is the perfect substitute of the other.
In the given case, the firms are few but they are manufacturing slightly different automobiles for the customers so that they can build a brand image and customer loyalty.
Hence from the above we can conclude that the correct option is B.
Answer:
c)consumer’s desired price is too low, producers may limit the amount produced
Explanation:
In a free market economy, price and quantity produced is determined by the forces of demand and supply. If there's a disequilibrium in the market, market forces bring about equilibrium.
In this question, there's a disequilibrium; there seems to be excess supply. To restore equilibrium, supply has to fall so equilibrium can be restored.
I hope my answer helps you.
