Answer:
The expected return on the company common stock is 4,03%
Explanation:
We can use the dividend growth model to determine the expected return on the company's common stock.
The formula is as follows P = 
/ ( k - g )
Where P = fair price of share ( current share price )
g = dividend growth rate (4%)
k = required rate of return
D = dividend expected in the following year ($1,50)
We need to solve for k and rearrange the formula to solve for K.
k = D/p + g
k = 4,03%
If we substitute K into the original formula we also end up with P = 45 which is the current share price.
Answer:
represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
Explanation:
The budget line is a graph which shows the two combinations of goods a consumer can consume given price and income level
<u>Properties of the budget line </u>
- When income increases, the budget line shifts outward and shifts inward when income decreases
- the horizontal and vertical intercepts represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
- the budget line is a straight line. This indicates that the marginal rate of substitution is constant
- the budget line is negatively sloped
Peer pressure is the notion of mutual friends coxing you into a rash situation and you, in a attempt to fit in, you agree to such a situation. This is bad and it’s practically impossible to avoid unless you care not for those opinions of those you hang around
Have a peer pressure filled day (jk btw lol)
Answer:
The Journal entry with their narrations is shown below:-
Explanation:
The Journal entry is shown below:-
Cash Dr, $1,200
Notes Receivable Dr, $2,800
To Accounts Receivable -R. Roy $4,000
(Being office supply of Vikram is recorded)
Therefore for recording the office supply we simply debited cash and notes receivable and credited the accounts receivable
