Answer:
The price of the stock today is $15.63
Explanation:
The three stage Dividend Discount model will be used to calculate the price of this stock as the dividends are growing at three different growth rates. These dividends will be discounted back to calculate the price of the stock today.
The price per share today under this model will be:
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+gC) / (r - gC)] / (1+r)^n
Where,
- D1 is the dividend expected for the next period of Year 1.
- gC is the constant growth rate or third stage growth rate that will last forever.
P0 = 1.25 / (1+0.2) + 1.25 * (1+0.4) / (1+0.2)^2 + 1.25 * (1+0.4) * (1+0.2) / (1+0.2)^3 + 1.25 * (1+0.4) * (1+0.2)^2 / (1+0.2)^4 +
[1.25 * (1+0.4) * (1+0.2)^2 * (1+0.08) / (0.2 - 0.08)] / (1+0.2)^4
The P0 = $15.625 rounded off to $15.63
Answer:
video game
Explanation:
because I don't go outside, I'm a gamer
Your answer would be B. The price will go up because supply is low.
Answer:
A) taking the cost into account because money spent on pollution reduction is not available for other worthy activities.
Explanation:
The economic approach tries to find solutions for problems optimizing the use of economic resources, therefore reducing costs and increasing benefits for every dollar spent.
Resources are scarce and that includes everyone, from a normal individual, to the richest person in the world, or the richest country in the world. The economic approach states that we should all try to maximize the benefits we obtain while exchanging resources. For example, if we need to study for a text and we know that solving problems helps us to learn more than just reading, then we should spend more time solving problems than reading because that way we can increase our benefits.
The US government and every other government in the world works on a budget and the money it spends doing A, will not be spent doing B. So the government must decide which actions to take in order for maximizing the benefits of the population (i.e. choose between A or B depending on which causes the greatest common good).
Answer:
c. $7,500 ordinary gain
Explanation:
Depreciated value of Machine = $55,000 - $12,500
= $ 42,500
Sale price of Machine = $ 50,000
Gain on sale of Asset = $ 50,000 - $ 42,500
= $ 7,500
Therefore, The amount and character of Butte's gain or loss is $7,500 ordinary gain.
