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Mnenie [13.5K]
3 years ago
8

App Holdings is expected to pay dividends of $1.50 every six months for the next three years. If the current price of App Holdin

gs stock is $22.60, and App Holdings' equity cost of capital is 18%, what price would you expect App Holdings' stock to sell for at the end of three years
Business
1 answer:
Y_Kistochka [10]3 years ago
8 0

Answer:

The answer is $34.36

Explanation:

FV = PV x (1 + R x ((1 + r))^T =  $22.6 x (1 + {($1.5 / $22.60) x [1 + (18% / 2)]}^6 = $34.36

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Harry goes to the local Staples store to purchase a laptop computer. He asks many questions of the salesclerk, compares various
zimovet [89]

Answer: Suggestive selling

Explanation: the recommendation to purchase an extended warranty service in addition to the purchase of a laptop computer by the salesperson is an example of suggestive selling. It is a form of stimulus-response presentation involving suggesting an initial or an additional purchase (the extended warranty). It is also known as add-on selling or upselling and is used to increase the purchase amount of the buyer thus increasing revenue of the store.

3 0
3 years ago
A conventional peg refers to. Multiple Choice where the exchange rate remains within a narrow margin of 2 percent relative to a
Trava [24]

A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows.

for better understanding lets explain what conventional peg means

  • conventional peg as related to when country formally (de jure) pinpoint their own currency at a fixed rate to the currency of another said country example is, from the currencies of major trading or financial partners and weights showing on the distribution of trade in different geographical zones
  • The known backbone or anchor currency or basket weights are public or notified to the IMF and a country authorities are able to maintain the fixed parity through direct intervention

From the above, we can therefore say that the answer A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows is correct.

learn more about exchange rates from:

brainly.com/question/21384395

3 0
2 years ago
Hi there !
Zanzabum

Answer:

Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period while revenue expenditures are typically referred to as ongoing operating expenses, which are short-term expenses that are used in running the daily business operations.

6 0
2 years ago
Read 2 more answers
Purely competitive industry X has constant costs and its product is an inferior good. The industry is currently in long-run equi
jasenka [17]

Answer:

increase in output, but not in the equilibrium price of the product. 

Explanation:

The options weren't provided. The full question can be found here - https://www.chegg.com/homework-help/questions-and-answers/perfectly-competitive-industry-x-constant-costs-product-inferior-good-industry-currently-l-q39354625

An inferior good is a good whose demand increases when income falls and whose demand falls when income rises.

When average income falls, the demand for good X rises. The level of output increases as a result of the rise in demand but price doesn't change.

I hope my answer helps you.

5 0
2 years ago
Companies HD and LD are both profitable, and they have the same total assets (TA), total invested capital, sales (S), return on
GaryK [48]

Answer:

Option D is correct.

Explanation:

Both company will have same Equity multiplier as total assets and equity are same of both companies. So Option A and B is incorrect.

Option C is also incorrect because there is no difference between the sales and total assets of both companies.

Option D is correct because the return on equity of the company LD is higher as the Net profit which is profit after interest and tax is higher than the profit after interest and tax of the company HD.

ROE = PAIT / Equity

Option E is wrong because when we say ROA is same this means that the operating income is same.

ROA = Operating profit / Total assets

Remember that the operating profit is earnings before interest and tax.

7 0
3 years ago
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