Answer: $25
Explanation: Dividends are the returns the shareholders of the company get for investing the the company and bearing the risk and it is calculated as follows :-
Dividend = (value of share) * (rate of return)
Here we have,
Dividend = $5
rate of return = 20%
Therefore,
= $25
Customer-managed relationship (CMR) was practised in the company as an extension of customer relationship management. In order for the customers to have the ability in acquiring information with regards to ordering products from a specific company online, corporations uses this methodology for the matter.
Answer:
$2,000,000
Explanation:
Menesuah incorporation has a projected cash flow of $100,000
FCF is expected to grow at a constant rate of 6%
The weighted average cost of capital is 11%
Therefore the value of its operation can be calculated as follows
= 100,000/(11/100-6/100)
= 100,000/0.11-0.06
= 100,000/0.05
= $2,000,000
Hence the value of its operation is $2,000,000
Answer:
$36.41(Approx)
Explanation:
The computation of price of the company's stock is shown below:-
Dividend for 1 year = $1.2 × 1.15
= $1.38
Dividend for 2 year = $1.38 × 1.15
= $1.587
Dividend for 3 year = $1.587 × 1.15
= $1.82505
After 3 years value = (Dividend for 3 year × Growth Rate) ÷ Cost of equity - Growth Rate)
=($1.82505 × $1.05) ÷ (0.095-0.05)
=$42.5845
Current value of stock = Future dividends × Present value of discounting factor(rate in percentage,time period)
= $1.38 ÷ 1.095 + $1.587 ÷ 1.095^2 + $1.82505 ÷ 1.095^3 + $42.5845 ÷ 1.095^3
= $36.41(Approx)
