Answer:
d. The stock price is expected to be $54 a share one year from now.
Explanation:
Using dividend discount model(DDM), find next year's dividend;
P0 = D1/ (r-g)
50 = D1/(0.14-0.08)
50 = D1/ 0.06
Multiply both sides by 0.06 to solve for D1;
50 *0.06 = D1
3 = D1
Next, year's dividend is $3
Dividend yield = D1/P0;
= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.
Next year's price; P1 = P0(1+g)
P1 = 50(1.08) = $54 hence choice D is correct
Answer:
A. Retained earnings
Explanation:
At the end of the period, the temporary accounts are closed, their balance is transfer to retained earnings, so the COGS and the sales revenue involved in the intra-entity transfer are contained in the retained earnings account
It should be noted that a sustainable society would emphasize using energy efficiently and reusing and recycling matter.
<h3>What is a sustainable society?</h3>
A sustainable society can be regarded as a society that based her source of energy on resuable source.
This source can be solar because it is resuable unlike crude oil , therefore using energy efficiently and reusing and recycling matter should be a target.
Learn more about sustainable society at;
brainly.com/question/3406415
Answer:
The price of the stock today is $3.49. The right answer is A.
Explanation:
In order to calculate the price of the stock today, we need to calculate first Value after year 5 with the following formula:
Value after year 5=(D5*Growth Rate)/(Required return-Growth Rate)
To find D5 we need to make the following calculations:
IF D1=0.3
, hence D2=(0.3*1.1)=0.33
, D3=(0.33*1.1)=0.363
, D4=(0.363*1.1)=0.3993 and D5=(0.3993*1.1)=0.43923
Therefore, Value after year 5=(0.43923*1.05)/(0.15-0.05)
=$4.611915
Therefore, now we can calculate the the price of the stock today with the following formula:
current price=Future dividends and value*Present value of discounting factor(rate%,time period)
=0.3/1.15+0.33/1.15^2+0.363/1.15^3+0.3993/1.15^4+0.43923/1.15^5+$4.611915/1.15^5
=$3.49
The accessory designer is required to actually design accessories with their knowledge of fadhion, while the sales representative only needs the ability to sell the accessory.
