Answer:
Ks = 4%+6% = 10%
Explanation:
so we need to remember that tax rate doesn't affect Cost of equity
in this case the formula will be:
cost of equity is equal to=dividend yield+Growth rate or Ks = D1/P + g
Camp Company's expected dividend yield ( D1) is 4%
growth rate is 6%
SO we get Ks = 4%+6% = 10%
Answer:
$81.52
Explanation:
In this question, we are asked to state the price to pay for a stock at this present day.
To calculate this, we compute it mathematically.
Mathematically, we have;
dividend/(1+required return rate)^year
we then add together
we have
=3/(1.12) + 4.25/(1.12)^2 + 6/(1.12)^3 + 100/(1.12)^3 = 81.52
Often, products enter decline the stage of the product life cycle not due to any error in strategy but because of environmental changes.
<h3>What is product life cycle?</h3>
A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves. There are four stages in a product's life cycle—introduction, growth, maturity, and decline.
<h3>What is the decline stage?</h3>
The final stage of the product life cycle (after introductory stage, growth stage and maturity stage) when sales are dropping because the original need and want have diminished or because another product innovation has been introduced.
The sales of most products will decline at some stage. This can be due to factors such as technological advances, trends, innovation or changing consumer tastes. You will know when your product reaches the decline stage of its life cycle because you will notice a significant downturn in the revenue it generates.
Learn more about Decline Stage of Product on:
brainly.com/question/6960017
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Answer:
PV= $40,835.6
Explanation:
Giving the following information:
Quarterly withdrawal (A)= $2,700
Number of periods= 4*4= 16 quarters
Interest rate= 0.67% per quarter
<u>To calculate the initial investment, we need to use the following formula:</u>
<u></u>
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
PV= 2,700*{(1/0.0067) - 1 / [0.0067*(1.0067)^16]
PV= $40,835.6
Answer:
1. e. The Fed buys a security from a bank for $1,000.
In order to increase money supply, the Fed buys a security from the bank and gives them money.
2. d. The bank sets $100 aside as required reserves.
The bank will set aside 10% of the money paid by the Fed which comes to $100 leaving the bank with $900.
3. a. The bank lends $900 to a customer needing a loan.
The bank then lends this money to customer who needed it.
4. c. The customer spends the $900 at a store.
The customer then spends the money thereby transferring it to another party.
5. b. The store owner deposits the $900 in another bank.
The store owner then takes the money spent by the customer and deposits it in another bank. That bank then gives the Fed 10% and then the cycle repeats.
