Answer:
B. You made a profit of $75.00
Explanation:
shares x ( sale - buy)
20 shares x ( 35 & 1/4 - 31 & 1/2)
20 x (35.25-31.5)
20 x 3.75 = 75
The difference between purchase and sale price is positive, so eahc share yields a gain of $3.75
We multiply this by the amount of shares to determiante the gain
<u>D. A premium rooftop restaurant in the same city</u> will be a part of Golden Harvest's strategic group.
<u>Explanation</u>:
A 5 Star Hotel is a hotel that provides a luxury service to its customers through its operation. It is operated to serve their guest at high level. The materials, tables and each and everything used in the five-star hotel are set with high quality. They provide utmost care to their guest.
In the above scenario, Golden Harvest is the restaurant that is operated inside a five-star hotel. They provide quality dining to their customers. The customers visiting the restaurant expect only the quality and they don’t bother about the prices.
This shows that <u>a premium rooftop restaurant in the same city will be a part of Golden Harvest’s strategic group.
</u>
Answer:
$24.18
Explanation:
Dividend for year 0 = $2.2
Dividend at year end 1 = $2.2
Dividend at year end 2 = $2.2(1 + .05) = 2.31
Dividend at year end 3 = $2.31 (1 + .05) = 2.4255
Dividend at year end 4 = $2.4255 (1 + .17)= 2.8378
Dividend at year end 5 = $2.8375 (1 + .09)= 3.0932
Dividend at year end 6 = $3.0932 (1 + .09) = 3.371
MPS = ![\frac{D_{1} }{(1\ +\ k)^{1} } + \frac{D_{2} }{(1\ +\ k)^{2} } \ +\ \frac{D_{3} }{(1\ +\ k)^{3} } \ +\ \frac{D_{4} }{(1\ +\ k)^{4} } +\ \frac{D_{5} }{(1\ +\ k)^{5} } \ + \frac{1}{(1\ +\ k)^{5} } [\frac{D_{6} }{(k\ -\ g)\ ]}](https://tex.z-dn.net/?f=%5Cfrac%7BD_%7B1%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B1%7D%20%7D%20%20%2B%20%5Cfrac%7BD_%7B2%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B2%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B3%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B3%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B4%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B4%7D%20%7D%20%20%2B%5C%20%5Cfrac%7BD_%7B5%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%5C%20%2B%20%5Cfrac%7B1%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%20%5B%5Cfrac%7BD_%7B6%7D%20%7D%7B%28k%5C%20-%5C%20g%29%5C%20%5D%7D)
where MPS = Market price of share
D= Dividend for different years
k = Cost of equity
g= constant growth rate after year 5
putting values in above equation we get,
MPS = 1.864 + 1.65 + 1.478 + 1.463 + 1.352 + 0.4371 × 37.462
MPS = $24.18
The maximum price per share that an investor who requires a return of 18% should pay for Home Place Hotels common stock is <u>$24.18</u>
