Answer:
The correct answer is $65.90 (approx.)
Explanation:
According to the scenario, computation of the given data are as follows:
Dividend paid = $8.50
Increase dividend = $6.50 per year
Require return = 16%
We can calculate the current share price by using following method:
=[($8.5 + $6.5) ÷ (1 + 16%)^1] + [($8.5 + $6.5 + $6.5) ÷ ( 1 + 16%)^2] +[($8.5 + $6.5 + $6.5 + $6.5) ÷ (1+16%)^3] + [($8.5 + $6.5+ $6.5 + $6.5 + $6.5) ÷ (1+16%)^4
= $15 ÷ 1.16 + $21.5 ÷ 1.16^2 + 28 ÷ 1.16^3 + 34.5 ÷ 1.16^4
= $65.90 (approx.)
Answer:
A
Explanation:
Cadillac is responding to one of the geographic demographic trends in the United States, which has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.
Answer:
D. identifying new ways for people to fulfill their wants and needs
Explanation:
Entrepreneurs start new businesses in society. They are quick to spot and identify needs and wants in the market. Entrepreneurs establish businesses to provide solutions to these needs and want at a profit.
Entrepreneurs use their creativity to come up with new and unique products that offer solutions to society's problems. They innovate better products and ways of offering services that are friendly and more cost-effective. Entrepreneurship goes hand-in-hand with creativity and innovation.
Answer:
C) AccuroDisk creates a greater economic value than TD Storage.
Explanation:
Economic value can be defined as the value added by a producer of a good and it is measured by the maximum amount that consumers are willing to pay for that good minus the costs of production.
AccuroDisk economic value = $47 - $32 = $15
TD Storage economic value = $50 - $37 = $13
Answer:
$1,600
Explanation:
It is important to note that the company uses accrual basis accounting. The Service Revenue account should be credited for $1,600
