Answer:
a. The price of the stock today is $24.75
b. The price of the stock in three years will be $28.65
c. The price of the stock in 14 years will be $49.00
Explanation:
The stock is a constant dividend paying stock so the constant growth model of the DDM will be used to calculate the price of the stock. The formula for constant growth model to calculate price of the stock today is:
P0 = D1 / r - g
Where,
- D1 is the dividend next year of D0 * (1+g)
- r is the required rate of return
- g is the growth rate in dividends
a.
The current price of the stock is:
P0 = 1.65 * (1+0.05) / (0.12 - 0.05)
P0 = $24.75
b.
To calculate the price of the stock today, we use the expected dividend for the next period. To calculate the stock price in three years, we will use D4.
P3 = 1.65 * (1+0.05)^4 / (0.12 - 0.05)
P3 = $28.65
c.
To calculate the price in 14 years, we will use D15.
P14 = 1.65 * (1+0.05)^15 / (0.12 - 0.05)
P14 = $49.00
Answer: automatic stabilizers
Explanation:
Automatic stabilizers are the provisions in the law that automatically increase government spending or decrease taxes when real output declines.
It should be noted that automatic stabilizers can be used to reduce recession impact on people by helping them to survive even when there is a job loss.
Answer:
resources; capabilities.
Explanation:
While resources are things a firm has to work with, such as equipment, facilities, raw materials, employees, and cash, capabilities are things a firm can do, such as deliver good customer service or develop innovative products to create value.
Generally, in order to be able to manufacture goods or provide services that meet the needs of various customers (end users), all companies or industries have to make use of resources. These resources are either sourced for on a regular basis or gotten at the inception of the business.
Also, the capabilities of a business firm or company is its ability to provide finished goods and services that meet the requirements or needs of the end users (consumers), as well as effectively solve unique problems in the world.
Answer:
1/17
Explanation:
There are 13 hearts in a deck of cards
first picking = 13 / 52
without replacement the number of hearts will reduce by 1 so also will the number of total card will also reduce
second picking = 12 / 51
Probability of picking two cards without replacement = 13/ 52 × 12/51 = 1/17