Answer:
$28.57
Explanation:
Dividend growth model can only be used in a situation where the firm pays a dividend which can tend to grow at constant rates reason been that the stock has been influenced by the growth rates which is involved in the dividends which means the firm can increase the dividends.
Therefore the Dividend that is to be paid next year will be:
$2Growth rates
5 %Rates of return
12% Return on Investment
Formular for the calculation of current price of the stock = D1/(r-g)
Where:
D1=2%
r=12%
g=6%
Hence:
2/ (0.12-0.05)= $ 33.33
=2/0.07
=$28.57
Therefore the amount I should be prepared to pay for the stock today will be $28.57
Answer:
$247,000
Explanation:
Calculation to determine the total of Hunter Products' liabilities at the end of May
Total of Hunter Products' liabilities=(400,000-150,000) - 60,000 + 63,000
Total of Hunter Products' liabilities=250,000 - 60,000 + 63,000
Total of Hunter Products' liabilities=$247,000
Therefore the total of Hunter Products' liabilities at the end of May will be $247,000
Answer and Explanation:
Economy is divided into two main fields: <em>Microeconomics and Macroeconomics</em>. Microeconomics studies the decisions of individuals and businesses while Macroeconomics is in charge of analyzing the economy as a whole including decisions made by governments and their countries. Thus:
A) <em>The effect of government regulation on a monopolist's production decisions (Macroeconomics).
</em>
B) <em>The optimal interest rate for the Federal Reserve to target (Macroeconomics).
</em>
C) <em>The government's decision on how much to spend on public projects (Macroeconomics).</em>
Answer:C
Explanation: I have worked for 3 banks over the course of the last 10 years.