Answer:
$50.8
Explanation:
As per given Data
Dividend Paid = $3
Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.
Formula for PV of dividend
PV of Dividend = Dividend x ( 1 + growth rate )^n x ( 1 + r )^-n
1st year
PV of Dividend = $3 x ( 1 + 20%)^1 x ( 1 + 14% )^-1 = $3.16
2nd year
PV of Dividend = $3 x ( 1 + 20%)^2 x ( 1 + 14% )^-2 = $3.32
3rd year
PV of Dividend = $3 x ( 1 + 20%)^3 x ( 1 + 14% )^-3 = $3.50
After three years the dividend will grow at a constant rate of 5%, so we will use the following formula to calculate the present value
PV of Dividend = [ $3 x ( 1 + 20%)^3 x ( 1 + 5%) / ( 14% - 5% ) ] x [ ( 1 + 14% )^-3 ]
PV of Dividend = $40.82
Value of Stock = $3.16 + $3.32 + $3.50 + $40.82 = $50.8
Correct answers: Country B will eventually have a higher real GDP than country A if the economy of each county continues to grow this way.
Incorrect answers: Country A has a high real GDP. Country A has a modestly high quality of life. Country A’s economy has been in a period of contraction. Country B has a very high quality of life. #Smokeweedeveryday
<h2><em><u>Answer:</u></em></h2><h2><em><u>Answer:Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales)</u></em></h2>
The answer is d: to protect against high prices
it makes trading goods and services more effective i just took the test and got it right
