Answer:
P14 = $55.69545045394 rounded to $55.70
Explanation:
The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 represents the expected dividend for Year 1 or the following year
- g denotes the constant growth rate for dividends
- r signifies the discount rate or the required rate of return
To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded to $1.67
Now applying the DDM formula for the price,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded to $55.70
25x - 0.25 = 150
25x = 149.75
x = 5.99
Each pair costs $5.99.
Cash flow from operating activities amounts to 3,800,000.
Explanation: Cash generated from sales is (A) 21,000,000. Cash expenses to suppliers (B) total (15,200,000). Interest paid is (1,000,000), and income taxes paid also amount to (1,000,000). Thus, cash flow from operational activities equals 3,800,000. (A) reflects sales and accounts receivable totaling 3,000,000 + 21,000,000 - 2,500,000, resulting in 21,500,000. (B) involves computations for purchases based on COGS and inventory assessments: purchases arrive at 15,000,000 + 3,000,000 - 2,400,000 equating to 15,600,000. Therefore, we solve for suppliers' payments, yielding 1,000,000 + 15,600,000 - 1,400,000 = 15,200,000.
