Answer:
THE VALUE OF THE STOCK TODAY IS $35.63
Explanation:
The dividend discount model bases the value of the stock on the present value of the expected future dividends from the stock. Using the three stage growth model of DDM, we can calculate the price of this stock today. The price/value of this stock today is,
P0 = 3.1 * (1+0.04) / (1+0.12) + 3.1 * (1+0.04) * (1+0.08) / (1+0.12)^2 +
3.1 * (1+0.04) * (1+0.08)^2 / (1+0.12)^3 +
[ (3.1 * (1+0.04) * (1+0.08)^2 * (1+0.02) / (0.12 - 0.02)) / (1+0.12)^3 ]
P0 = $35.63
Answer:
<em>Span of control
</em>
Explanation:
The definition of "<em>Span of control
</em>," also recognized as management ratio, refers to the amount of directly superior-controlled subordinates.
Comprehending small business owners is an especially important principle since small businesses often find themselves in trouble when the entrepreneur ends up with far too large a span of command.
Span of control is a subject taught in schools of management and commonly used in big organizations such as the military, government agencies and academic institutions.
Answer:
By installing fingerprint security or password system.
Explanation:
Fingerprint security or password system will be installed in the radio, cellular and satellite transmissions which can only work after it receive the correct fingerprint or password. If this security system is used in these machines then no other person is able to use it so in my opinion these security systems should be incorporated in order to make these machines safe and secure.
The correct answer is: "I would recommend her not to increase the price, because with an elastic demand function this will cause a great decrease in the quantity demanded by consumers".
The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, given that the rest remains equal). <u>Therefore, when the price charged decreases, the amount that consumers are willing to purchase increases. </u>
In turn, the elasticity of the demand function measures the sensitiveness of the quantity demanded by consumers when there is a certain price change. If the demand function is elastic it means that a price variation would generate an even larger variation (in the inverse direction of course!) in the quantity demanded. <u>This is the case of the lemonade stand therefore the girl should not increase prices because this will not help her to reach her objective quicke</u>r, as she would loss a greater proportion of units sold than the size of the price increase that would have allowed her to earn more per unit.
Mary saved $61 by purchasing the tires through the mail
Solution:
Total for the 4 tires by mail order
= 4 x (57.60 + 4.30 + 7.58)
= 277.92
She paid $ 57.60 per tire
She paid $ 4.30 per tire for shipping and handling
She paid $ 7.58 including tax, per tire for mounting and balancing.
6% sales tax
At a local tire store, her total for the 4 tires
= $ 320 + 6% x 320
= 339.2
∴ 339.2 - 277.92= 61.28 ≈ $61
Mary saved $61 by purchasing the tires through the mail