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alekssr [168]
4 years ago
7

Type the correct answer in the box.

Business
1 answer:
sveticcg [70]4 years ago
6 0

Answer:

Capital

Explanation:

Factor of production are defined as resources or input that are used in production process to get output.

The factors of production includes land, labour, and capital.

Although these are not part of the final product , they facilitate production.

In the given scenario Louis is planning to raise funds for her new business venture.

This is an activity aimed at raising capital for the business.

Capital is a sum of money that is used to start or run a business.

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Liabilities- debts you owe (loans)

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The Highfield Company is going through a five-year of fast growth at 20% initially, and then it will grow at a perpetual rate of
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Answer:

P0 = $66.6429 rounded off to $66.64

Option c is the correct answer

Explanation:

Using the two stage growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock today is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  +  [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]

Where,

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P0 = 2* (1+0.2) / (1+0.1)  +  2 * (1+0.2)^2 / (1+0.1)^2  +  2 * (1+0.2)^3 / (1+0.1)^3  

+  2 * (1+0.2)^4 / (1+0.1)^4  +  2 * (1+0.2)^5 / (1+0.1)^5  +

[(2 * (1+0.2)^5 * (1+0.04)  /  (0.1 - 0.04)) / (1+0.1)^5]

P0 = $66.6429 rounded off to $66.64

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