Answer:
$44.25
Explanation:
<u>procedure 1:</u>
we can determine the present value of the stock using the following formula:
present value = future value / (1 + constant growth rate)ⁿ
- future value = $50
- constant growth rate = 13%
- n = 1
present value = $50 / (1 + 13%) = $50 / 1.13 = $44.25
<u>procedure 2 (optional):</u>
future value = future dividend / (required rate of return - constant growth rate)
$50 = future dividend / (18% - 13%)
future dividend = $50 x 5% = $2.50
now we must determine the dividend for the current year:
current dividend = future dividend / (1 + constant growth rate)
current dividend = $2.50 / (1 + 13%) = $2.50 / 1.13 = $2.21
now we apply the Gordon growth model:
present value = dividend / (required rate of return - constant growth rate)
present value = $2.21 / (18% - 13%) = $2.21 / 5% = $44.25
Deep processing is better because then you internalize the information.
Explanation:
Deep processing and Surface processing are both ways of retaining information and learning concepts.
<u>Surface processing is focused on retaining details and statistics. It helps with knowledge of specific facts but not as much with concept</u>s.
<u>For a driving license test, apart from a few essentials most of the learning has to be intuitive</u> and from the cognition of the person themselves, this only comes with a c<u>larity of concepts which can be achieved with deep processing.</u>
It is compute the dilutes earnings per share. I think it’s B.
Answer:
A) increase by $1,200 is the correct option
Explanation:
Incremental savings [500 *26] =13000
Rental income=2,200
Total income=15200
Less:Incremental cost =[500*28] =- 14000
Incremental income 1200