Answer:
option b is correct
current stock price is $42.64
Explanation:
given data
dividend = $1.75
growth rate = 25% for 2 year
growth rate 1 = 6%
required return 2 = 12%
to find out
current stock price
solution
we will find here first stock price after 2 year that is
stock price = cash flow at 2 year end × ( 1+rate ) / ( rate 2 - rate1 ) ..................1
so here cash flow at 2 year end = 1.75×1.25 = 2.1875
2.1875 × 1.25 = 2.734
stock price = 2.734 × ( 1+ 0.06 ) / ( 0.12 - 0.06 )
stock price = 48.30
so stock price at 0.12 return
= cash flow at 1 year / ( 1+ rate 2 ) + cash flow at 2 year / ( 1+ rate 2 )² + stock price / ( 1+ rate 2 )²
= 2.1875 / ( 1+ 0.12 ) + 2.734 / ( 1+ 0.12 )² + 48.30 / ( 1+ 0.12 )²
= $42.64
so option b is correct
current stock price is $42.64
Answer:
The correct answers are "How?"; "What?"; and "Who?" respectively.
Explanation:
To begin with, in the economics science there is a big importance that the professionals of the area give to answering the questions mentioned before. Those questions are: "What to produce?"; "How to produce it?" and "To who we produce it to?". And the importance in that resides in the fact that the economy itself as a whole and therefore the companies and small producers among them need to understand what are they going to produce for the economy, to who they will sell it to and how will the produce it.
In conclusion, when the firm decides to use skilled professionals to produce its output they are answering the question of "How?". When the firm decides to produce organic fruit rather than non dash organic fruit, then they are answering the question of "What?". And the when the firm finds out who gets the goods and services that are produced, they are answering the question of "Who?".
Answer:
WACC 10.42614%
Explanation:
<u>First we use CAPM to solve for the cost of equity</u>
risk free 0.04
market rate
premium market (market rate - risk free) 0.08
beta(non diversifiable risk) 1.1
Ke 0.12800
Then we calculate the WACC (weighted average cost of capital)
D 80,000 bonsd x 1,000 = 80,000,000
E 4,000,000 shares x 40 = 160,000,000
E+ D 80,000,000 + 160,000,000 = 240,000,000
equity weight: 2/3
liability weight: 1/3
Ke 0.128
Equity weight 0.6667
Kd 0.086
Debt Weight 0.3334
t 0.34
WACC 10.42614%
Answer: formal education
experience
Explanation:
Aptitude could be described as the capability to learn a particular job or skill. The vital way of learning and aptitude is by formal education experience. Formal education experience is a structured system of learning whereby the students are trained by teachers for a certain period of time. The environment are a classroom type which involves the student making use of various learning material, the learning process cuts across various fields of life.
