Answer:
The correct answer is "$ 30.34".
Explanation:
The value of the stock can be computed by the following formula:
⇒ ![\frac{Dividend \ in \ year \ 3}{(1 + Required \ return \ rate)2} + \frac{Dividend \ in \ year \ 4}{(1 + Required \ return \ rate)3} + \frac{Dividend \ in \ year \ 5}{(1 + Required \ return \ rate) 4 } + \frac{1}{(1 + Required \ return \ rate)4 }\times [\frac{( Dividend \ in \ year \ 5 (1 + Growth \ rate)} {( Required \ return \ rate - Growth \ rate)}]](https://tex.z-dn.net/?f=%5Cfrac%7BDividend%20%5C%20in%20%5C%20year%20%5C%203%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%292%7D%20%20%2B%20%5Cfrac%7BDividend%20%5C%20in%20%5C%20year%20%5C%204%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%293%7D%20%20%2B%20%5Cfrac%7BDividend%20%5C%20in%20%5C%20year%20%5C%205%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%29%204%20%7D%20%2B%20%5Cfrac%7B1%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%294%20%7D%5Ctimes%20%5B%5Cfrac%7B%28%20Dividend%20%5C%20in%20%5C%20year%20%5C%205%20%281%20%2B%20Growth%20%5C%20rate%29%7D%20%7B%28%20Required%20%5C%20return%20%5C%20rate%20-%20Growth%20%5C%20rate%29%7D%5D)
On putting the values, we get
⇒ ![\frac{1.50}{1.08^2} + \frac{1.60}{1.08^3} + \frac{1.75}{1.08^4 } + \frac{1}{1.08^4} \times [ \frac{( 1.75\times 1.03)}{(0.08 - 0.03)}]](https://tex.z-dn.net/?f=%5Cfrac%7B1.50%7D%7B1.08%5E2%7D%20%20%2B%20%5Cfrac%7B1.60%7D%7B1.08%5E3%7D%20%20%2B%20%5Cfrac%7B1.75%7D%7B1.08%5E4%20%7D%20%2B%20%5Cfrac%7B1%7D%7B1.08%5E4%7D%20%5Ctimes%20%5B%20%20%5Cfrac%7B%28%201.75%5Ctimes%201.03%29%7D%7B%280.08%20-%200.03%29%7D%5D)
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($)
Answer:
An arbitration agreement is a contract in which you and your employer agree that certain disputes will be decided in arbitration, not litigation. When you sign a binding arbitration agreement, you are giving up your right to go to court.
Explanation:
Answer:
Optimization
Explanation:
Since we were told that the brand manager has limited budget of $25,000 which makes the manager to decide that television adverts is much more effective than radio adverts making him to allocates, at least 70% of the time to television, based on this I wiill run OPTIMIZATION test reason been that optimization will help and enable me to make the best or most effective use of available resource which will in turn Reduce costs while improving the performance which is why the brand manager decide to allocate 70% to Television in order to make the business more efficient as well as cost effective.
Answer:
Explanation:
- Given the equation ; Qxd = 10,000 − 4PX + 5PY + 2M + AX
- where PX is the price of X = $50
- PY is the price of good Y = $100
- and AX is the amount of advertising on X = 1,000 units
a) Calculate the quantity demanded of good X ; Plugging all the values into the equation ;
= 10,000 − 4(50) + 5(100) + 2(25,000) + 1000
Qxd = 61,300units
b) Calculate the own price elasticity of demand for good ;
= d(Qxd)/dpx X px/Qxd = -4 x 50/61,300
= 0.0033. hence he demand for goods is inelastic
c) l will surely recommend lowering the price as this is evident from the value of the price elasticity of demand which is negative as such an increase in the price of their goods will give rise to total loss
d ) cross-price elasticity between goods X and Y = %change in quantity/ %change in price
e) Calculate the income elasticity of good X. Is good X normal or an inferior good? = dQ/dM X M/Q = 2(25000) /61300
= 0.82.
Yes! Good X is a normal goods since the value of the income elasticity is positive.
