Answer:
This answers may help you
Trina wants to start a company that makes clothing. She has a lot of ideas, but she doesn’t have any sewing machines to use to m
1 answer:
You might be interested in
Answer:
The stock current intrinsic value is: $39,46
Explanation:
We solve using the gordon model for dividend growth to valuate the price of the stock:
d0 = 2.50
d1 = 2.50 x 1.03 = 2.575
Value: 42,91666666666667
This value is three years therefore, we need to discount:
Maturity $42.9167
time 3.00
rate 0.09000
33.1395
We also have to calcualtethe present value of the first, second and third year dividends
discount rate 0.09
# Cashflow Discounted
1 2.5 2.29
2 2.5 2.1
3 2.5 1.93
PV 6.32
We ad this to the PV of the infinite future dividends growing at 3%
6.32 + 33.1395 = 39,4595
Answer:
Approximately 71 .11 months
Explanation:
This is a Future Value question. However we are solving for the Number of periods to determine how long it would take Joan to accumulate $3688.
Interest compounded monthly means Joan will be paid interest on her deposit on an annual basis prorated. she gets to earn interest on the accumulation of interest + principal monthly.
The formular for calculating Future Value is
FV = PV ( 1 + R )ⁿ
Our R which is the Rate(5%) will be adjusted to 12 months. =
However we need to solve for the N since we already have our FV. Therefore the revised formular is :
Continuing with the formular
Which is equals to 71.11 months approximately 6 years.