Answer:
P14 = $55.69545045394 rounded off to $55.70
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected in Year 1 or next year
- g is the constant growth rate in dividends
- r is the discount rate or required rate of return
To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded off to $1.67
Now using the equation for Price as provided by the DDM model,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded off to $55.70
Answer:
3 then 1
Explanation:
Supply is said to be increased when the quantity supplied expands but the price and quantity demanded remains unchanged. As quantity supplied has increased whereas the quantity demanded is what it was before this change, there is first a surplus of bottled water in the market. This surplus will have a downward pressure on price, reducing the quantity supplied a bit and, as the law of demand suggests ,the quantity demanded will increase. Given that the demand is relatively price elastic, the change in quantity demanded will be greater than the change in price. Therefore the revenue will increase.
Answer:
There are many things that a company can do to institutionalise learning and knowledge. Some of them doesn't even cost much and take a lot of time to be implemented.
Empowerment of individual employees. Giving them more autonomy in the job and the capacity to work freely with the peers.
Making teams rather than working individually. Team spirit is essential in the learning process and to promote sharing.
Conducting internal development and training programs on a regular basis.
Using social media platforms to connect the employees so that they are able to share their knowledge, expertise on a real-time basis.
Reducing the power gap between the employees and their superiors.
Explanation:
<span>Assuming all other costs remain constant, if hourly wage increased by ten percent next week from the current week, the variance of total payroll will also increase by ten percent. This is derived using the Smith BBQ Restaurant report.</span>
