Answer:
The current market price per share is $14.82
Explanation:
The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.
The following is the formula for the price of the stock today,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + Terminal value
The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes zero, like in this case, the terminal value is calculated as follows,
Terminal value = Dividend / r
Where,
- r is the required rate of return
- Dividend is the dividend which will remain constant through out the future
So, the price of this stock today is,
P0 = 1.52 / (1+0.11) + 1.60 / (1+0.11)^2 + 1.62 / (1+0.11)^3 +
(1.65 / 0.11) / (1+0.11)^3
P0 = $14.82
Answer: Signature included on the front or back of a check acknowledging that both parties have agreed to exchange the specified amount on the document
Nominal GDP is a good snapshot of the current value of production in an economy but it cannot be used to make comparisons over time because prices change.
Nominal GDP is an indicator used to understand a country's economy. It measures the current value of production of a country. But it cannot be considered as a good measure. One important drawback of Nominal GDP is that it cannot be used to make comparisons of production prices over time because it doesn't take inflation into account.
Nominal GDP works only with current prices and the price changes will not be seen when calculated through years.
So Real GDP is considered for comparisons of product prices over time.
Learn more about Nominal GDP at brainly.com/question/8151973
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Answer:
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Explanation:
Answer:
last
equal
Explanation:
A profit maximising producer would produce up to the point where the marginal product of the last unit of factor employed equals the factors price.
After, this point is reached, diminishing returns sets in
