Answer:
$93.22
Explanation:
Data provided in the question:
Dividend paid, D0 = $2.30
Expected growth rate, g = 15% = 0.15
Growth rate for after year 8, g' = 6% = 0.06
Required return, r = 14% = 0.14
Now,
the Dividend for the year 8, D8 = D0 × (1 + g)⁸
= $2.30 × (1 + 0.15)⁸
= $2.30 × 3.06
= $7.036
Thus,
Price of the stock today = D9 ÷ (r - g' )
= [ D8 × ( 1 + g') ] ÷ (r - g' )
= [ $7.036 × ( 1 + 0.06 ) ] ÷ ( 0.14 - 0.06 )
= 7.46 ÷ 0.08
= $93.22
Answer:
D.
Explanation:
Based on the information provided within the question it can be said that the design should positively influence consumer behavior. This is because it has been implemented specifically for this. Marcus hopes that the smell would put customers at ease and make them like the store as well as the products more, which in term would increase sales.
I would like to buy a car with the income I would make, it would be a equity investment. I chose this item because it would help me get to work and places on my owns. I would also like to buy or rent a house with my income, this would also be a equity investment, it would give me a place to live to a long-period of time. I would like to invest in a strong company would wants to help the good in the world, this is a debt investment, it would give a strong face to the world.
The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because the yen is stronger in most of the time over the U.S. dollar. When the yen is stronger than the U.S. dollar, it's cheaper for Japanese customers to buy the U.S. products. This type of agreement should lead to more sales for the Ozark Bike Company which means their profits will in-turn be higher. Not only will profits rise, so will awareness of the product and help grow the Ozark Bike brand.
