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Novay_Z [31]
3 years ago
5

Ackert Company's last dividend was $4.00. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which d

ividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price?a. $87.00b. $89.87c. $80.31d. $104.21e. $95.61
Business
1 answer:
Elza [17]3 years ago
5 0

Answer:

First we need to use the ddm model when the growth rate is constant and find the price then,because the ddm model cannot be used when the growth rate  is not constant and then discount it back to present value at 12% which is the required return.

Last dividend = $4

Dividend one year from now = 4*1.015=4.06

Dividend 2 years from now = 4.06*1.015=4.12

Growth rate 2 years from now = 8%

R= 12%

Price = D*(1+G)/(R-G)

=4.12*(1+1.08)/(0.12-0.08)=4.45/0.04= 111.26

Price of stock 2 years from now $111.26, now we need to discount it to the present value. 111.26/1.12^2=88.69

Best estimate = b. $89.87

Explanation:

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Answer: (D) Transnational    

Explanation:

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 The main advantage of the transnational strategy is to providing the various types of simultaneous function in the multiple countries.  

According to the given question, the company using a transnational strategy for the purpose of balancing the efficiency to adjust the local preferences in the various types of other countries.          

 Therefore, Option (D) is correct answer.

4 0
2 years ago
Charlotte is trying to measure her salon's productivity during the first quarter. For this period, she should divide ________ by
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Answer:

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Explanation:

Productivity can be regarded as ratio of output volume to that of the volume of inputs. It give the measurements of

production inputs efficiency, these input could be labour, capital. Productivity helps to know how these inputs are been used in production of given level of output in economy.

7 0
2 years ago
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My Guest is P2P or Debit Card

Explanation:

3 0
2 years ago
Jack is a crook with an honest face. People easily trust him. Jack works a scam in which he convinces the elderly to invest thei
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Answer:

False Pretenses

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From the question given, jack is involved in the crime called false pretenses. He receives money by which he mentions things that are not true.

He brings out a false annual reports of profitable returns for a a non existing company or organisation. This representation is false with actual facts.

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3 years ago
With an ATM checking account, you are typically charged a fee if you use teller services (walk-in or drive-through).
romanna [79]

<u>Answer: </u>

With an ATM checking account, you are typically charged a fee if you use teller services is a false statement.

<u>Explanation: </u>

  • The ATM facility has been rolled out in order to dispense convenience to the users of cashless transactions or of withdrawing cash whenever need.
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