A.the first graph all the way to the left, hope this helped :P
Answer:
$34.22
Explanation:
The computation is shown below:
Value of the stock = Next year dividend ÷ (Required rate of return - growth rate)
where,
Growth rate equal to
= {($0.76 ÷ $0.632)^1 ÷ 3} - 1
= 6.34%
And, Next year dividend would be
= $0.76 × (1 + 6.34%)
= $0.81
So, the value of the stock would equal to
= 0.81% ÷ (8.70% - 6.34%)
= $34.22
The answer is letter C.
Cognition refers to the methods involved in processing information, applying knowledge, forming perceptions, and making decisions. It is an important trait that separates the human brain from other organisms, because we are able to perceive and make decisions based on our senses and our previous experiences.
The rich made sure only they could get education and all the right tools, etc. So the poor were left out of the advantages that rich people kept hoarding. So the poor were rarely able to catch up.
Answer:
The maximum price that should be paid for one share of this stock today is $46.86
Explanation:
Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.
The price of this stock at time zero (t=0) will be,
Prcie = 2 / (1+0.08) + 2.5 / (1+0.08)^2 + 50 / (1+0.08)^2
Price = $46.86
