If expected dividends grow at 7% and the appropriate discount rate is 9%, what is the value of a stock with an expected dividend one year from now of $1.00?

P0 = $49.0825 rounded off to $49.08

Explanation:

The value of a stock whose dividends are expected to grow at a constant percentage is calculated using the constant growth model of DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price of the stock today under this model is,

P0 = D1 / (r - g)

Where,

To calculate the price today or P0, we use D1. Thus, as the constant growth rate will apply from Year 2, we will first calculate the price of the stock at Year 1 or P1 using the D2. Then we will discount this P1 back to P0 by dividing it by (1+r).

P1 = 1 * (1+0.07)  /  (0.09 - 0.07)

P1 = $53.5

Price of the stock today is,

P0 = P1 / (1+r)

P0 = 53.5 / (1+0.09)

P0 = $49.0825 rounded off to $49.08

they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.