Answer:
$124.58
Explanation:
Year 1 dividend=$2.75*(1+30%)=3.575
Year 2 dividend =3.575
*(1+25%)=4.46875
Year 3 dividend=4.46875
*(1+25%)=5.5859375
Termina value=Year 3 dividend*(1+constant growth rate)/(required return-constant growth rate)
Termina value=5.5859375
*(1+5%)/(9%-5%)=146.6308594
stock price=3.575
/(1+9%)^1+4.46875
/(1+9%)^2+5.5859375
/(1+9%)^3+146.6308594
/(1+9%)^3
stock price=$124.58
Answer:
D: 5 years
Explanation:
Cash payback period calculates the amount of years it takes for the amount invested in a project/ product / equipment to be recouped from revenue.
The cost of the computer is $40,000
Net income increases by $ 5,000 yearly
Depreciation expense is $3,000 yearly
Revenue = $5000 +$3000=$8,000
Pay back period = $40,000 / $8000 = 5 years
I hope my answer helps you.
The number of buyers in the market for gardening equipment increases, this will impact the market for gardening equipment by increasing the demand for gardening equipments.
An increase in the price of a good or service always tend to decrease the quantity demanded. A decrease in the price of a good or service will increase the demand for the quantity
Demand is an economic concept which is related to the consumer's desire to purchase goods and services and he is willing to pay a specific price for them.
To know more about demand here:
brainly.com/question/13334895
#SPJ4
It generates a positive net present value to the shareholders of an acquiring firm.
<h3>Why Do Companies Merge With or Acquire Other Companies?</h3>
Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
KEY LESSONS
- Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
- A merger is the joining of two companies in which one of the companies ceases to exist after being absorbed by the other.
- A merger occurs when one company acquires a majority stake in the target company, which keeps its name and legal structure.
To learn more about merger and acquisition from the given link
brainly.com/question/14195407
#SPJ4
