Answer:
Milton should buy the company
Explanation:
Comparing the intrinsic value of the company in both scenarios using the Gordon Growth Model we get:
PV = [D0 * (1 + g)] / (r - g) where
D0 is current dividend
g = growth rate
r = required rate of return
Case 1 = current
PV = 1.7 * (1 + 0.05) / (0.11 - 0.05)
PV = 29.75
Case 2 = buying company
PV = 1.7 * ( 1 + 0.065) / ( 0.12 - 0.065)
PV = 32.92
The present value of the share when buying the company is higher than the current present value, therefore Milton should go ahead buying the company.
The amount of income earned per share of a company's outstanding common stock is known as <u>Earnings per share</u><u> or </u><u>EPS</u>.
EPS indicates the corporation's profitability by displaying how plenty cash a commercial enterprise makes for each percentage of its inventory. The EPS parent is decided with the aid of dividing the employer's internet profit via its fantastic shares of common inventory. But, it's miles taken into consideration the higher the EPS range, the greater profitability of the organization.
Income in line with percentage is calculated by dividing the business enterprise's total income via the full range of shares top-notch. The system is straightforward: EPS = overall earnings / remarkable stocks. General income is the same as internet earnings on the profits statement. it's also referred to as profit.
Profits according to share is the economic price of income in step with a super share of common stock for an employer. It is a key measure of corporate profitability and is generally used to fee shares.
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I would first see what they know and how much they know in order to see what to change and or improve. (the people who are accountants). Second i would make the changes that would benefit me as well as followers who would also benefit me so that way i will stay in power. Then the rest is up to you to see how long you can rule by making the right decisions with money.
Answer:
Although leather is still used in the construction of the bags (the reinforcing trim is still made from leather) as a whole a Louis Vuitton coated canvas bag is much more durable than your average leather or fabric bag, making it a very sound investment.
Explanation:
Mr. Divers will be affected bey th unatnticpated inflation causng his retirement account to be worth less in the future than before inflation. Due to inflation, the prices of goods and services rise causing his money to be spent in a shorter time period on less items then it would have if it were spent without any type of inflation issues.