A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units t
1 answer:
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Answer:
market capitalization = current stock price x total stocks outstanding.
Since we are not given neither the total number of shares outstanding or current stock price, we can use another question as an example.
In the other question, the total number of outstanding shares was 3,225,987 and the current stock price is $20.76. So the current market cap = 3,225,987 x $20.76 = $66,971,490
If the stock price increases by 10% (to $22.836), then Chester's market cap = 3,225,987 x $22.836 = $73,668,639 or $73.7 million.
You can follow the example to determine the market cap in your question.
Answer:
current price of the stock P = $55.084
Explanation:
given data
dividend D1 = $3.25 per share
Dividend growth rate g = 5.1 % = 0.051
Required rate of return r = 11 % = 0.11
solution
We can find the price of the company stock today by using Gordon's Growth Model that is
current price of the stock P = ..................1
here D1 is dividend and r is rate of return and g is growth rate
so here value in equation 1 we get
current price of the stock P =
current price of the stock P = $55.084