Answer:
$73.47
Explanation:
2.87 is the current dividend paid (D0)
Use that to find dividends for the next 5 years;
D1 = D0(1+g) ; g being the growth rate
D1 = 2.87(1.08) = 3.0996
D2 = 3.0996(1.08) = 3.3476
D3 =3.3476(1.08) = 3.6154
D4 = 3.6154(1.08) = 3.9046
D5 = 3.9046(1.08) = 4.2170
Next, find terminal cashflows;
D6 (yr 2024) = 4.2170 (1.03) = 4.3435
Find Present values of all the dividends using the 8% discount rate with the formula; PV = FV/
PV(D1) = 2.87
PV(D2) = 2.87
PV(D3) = 2.87
PV(D4)= 2.87
PV(D5)= 2.87
PV of terminal value; PV(D6 onwards) =
= 59.1223
Sum up the PVs to find value per share;
$2.87 +$2.87 +$2.87 +$2.87 +$2.87+ $59.1223 = $73.47
Answer:
By how much are customers paying early or late?
Explanation:
Days sales outstanding (DSO) represents the average number of many days it takes a business to collect its accounts receivables.
DSO = (accounts receivables / total credit sales) x 365 days
DSO = ($60,000 / $325,000) x 365 days = 67.38 days
customers are paying late by 67.38 days - 45 days = 22.38 days
<span>Bank of America, with 14,058 million common shares outstanding in 2015, and with dividends of $0.05 paid 4 times per share in 2015, the dividends paid overall in 2015 was $2,812 million.</span>
Answer:
b. increasing in volume and scope
Explanation:
Outsourcing refers to assigning routine day to day tasks of less significance to an outside firm at a contractual price, with dual motive of saving time and focusing upon more important tasks and also to avail specialized services of an outside firm to ensure efficiency.
For example, a company may outsource it's human resource management function to third party consultants rather than conducting recruitment on it's own.
With the growth in businesses and with increased competition, the need to focus upon strategic tasks has increased which calls for growth in outsourcing function owing to which outsourcing of services has increased both in volume and scope.