Answer:
$14.49
Explanation:
Present P/E ratio = Current stock price/(Net income/Shares outstanding)
Present P/E ratio = 14.75/($8,000,000/5,500,000 shares)
Present P/E ratio = 10.1406
EPS after 1 year = 8000000*125%/ 7000000
EPS after 1 year = 1.4286
Stock price = EPS after 1 year * Present P/E ratio
Stock price= 1.4286* 10.1406
Stock price = $14.49
<span>Given Data:
</span><span>
The return = 12%</span><span>
Stock price = </span>$43/share
<span>
Dividend = $1.00
Growth rate = </span><span>30% per year
</span> D₄ = $1.00 × (1.30)⁴
<span> = $2.8561.
</span><span>
Stock's expected constant growth rate after t = 4
</span>
Stock's expected constant growth rate:
X = 6.34%
Answer:
Prices ensure an equal distribution of goods and services among consumers.
Explanation:
The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.
Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.
For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.
Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.
The correct answer is D.
If you don't include something in the subject line of an email the recipient might delete your message or send it to the spam folder. The whole purpose of a subject line is to include a compelling reason for the recipient to open the email and read it. If there is nothing in the subject line then the recipient will have no reason to open the email and might just automatically delete it of forward it to spam.
