Answer:
Price of stock- $26
Explanation:
<em>Using te dividend valuation model, the price of a stock is the present value of the future cash flows expected from the stock discounted at the required rate of return.</em>
Where a stock is expected to pay dividend growing at a specific rate, the price of the stock can be dertermined as follows:
Price = D(1+g)/(ke-g)
D -dividend payable now,
Ke-required rate of return,
g - growth rate in dividend
So we can work out the price as follows:
Price = 1.25( 1+0.04)/(0.09-0.04)
= $26
Price =$26
Answer:
1040 Z is the correct answer
Explanation:
Answer: False
Explanation:
Being able to determine the effect on price would have to be circumstantial
Answer: Option A
Explanation: One of the major advantage of using newspaper is that an individual can reach to the prospects on such demo-graphical areas where other mediums might not work effectively and efficiently.
If an entity wants to advertise its product to smaller audiences at living in difficult places then it should go for newspaper. Also newspaper is the most common medium as one might not watch tv or listen radio daily but most of the individuals read newspaper everyday at morning.
Hence the correct option is A .
