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
The trend this business is following is necessities, since those are things we need.
Based on the number of peacocks and turkeys that can be owned, the opportunity cost of one peacock is<u> 20 turkeys. </u>
<h3>What is opportunity cost?</h3>
- Refers to the benefit that we forego when we choose an alternative over another.
In this scenario, Susie can either have 100 turkeys or 5 peacocks. The opportunity cost of a single peacock would be:
<h3>Opportunity cost of peacock </h3>
= Number of turkey / Number of peacock
= 100 / 5
= 20 turkeys
In conclusion, opportunity cost of a single peacock is 20 turkeys.
Find out more on opportunity cost at brainly.com/question/3597509.
Answer:
d.Equilibrium price will be indeterminate and equilibrium quantity will go up.
Explanation:
An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. ... If demand and supply change in the same direction, the change in the equilibrium output can be determined, but the change in the equilibrium price cannot.
<span>Farmers who sell their fruit and vegetables to consumers at roadside stands or farmer's markets use a producer to consumer marketing channel.
Producer to consumer means that it goes straight from the person who produced the good or service to the hands of the consumer with no middle man. In this case, instead of going from producer to the grocery store and then to the consumer - they skipped the grocery store step. :)</span>