Dee’s made two announcements concerning its common stock today. first, the company announced that the next annual dividend will be $1.94 a share. secondly, all dividends after that will decrease by 1.25 percent annually. what is the value of this stock at a discount rate of 14.5 percent?

The answer is: $12.32

Explanation:

Dee's stock can be considered a perpetuity with a negative growth rate. So we can use the following formula to calculate the value of Dee's stock:

price of Dee's stock = dividend / (discount rate - growth rate)

where:

price of Dee's stock = $1.94 / [0.145 - (-0.0125)] = $1.94 / (0.145 + 0.0125) =

$1.94 / 0.1575 = $12.32

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

answer; ///liability;