Answer:
4.88 years
other methods should be used because payback method does not account for the time value of money
Explanation:
Answer:
The expected price after 1 year would be$55.5
Explanation:
According to the given data,
Price of the stock (Po) = $50
Dividend after 1year (D1) = $2
Equity cost of capital (KE) =15%
The formula for calculating the price after 1 year i.e.,(P1 ) is
Po = (D1 + P1 )/ 1+KE $50= ($2 + P1) / (1+0.15)
P1 = [$50(1.15)] - $2 = $55.5
Answer:
Option A. $7000
Explanation:
The reason is that in the statement of cash flow, the interest expense for the year paid is an cash ouflow and must be deducted from the operating activities as it the companies borrow to finance its operations to perform better. Hence it is related to operating activities, so it must be deducted from the operating activities.
The interest paid at the end of the year is $7000 ($100,000 * 7%).
Answer:
a. GDP will increase
b. No effect on GDP
c. GDP will increase
d. GDP will increase
e. GDP will rise
Explanation:
Gross domestic product is the total monetary value of all the finished goods produced in the country during a specific period. When a new house is constructed it will create value for the economy and GDP will rise but when an old house is resold again there is no addition in the monetary value so there will be no effect on GDP.
