Answer:
the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38
Explanation:
The calculation of the estimated price of the stock in 5 years is given below:
= 5th Year dividend ÷ (Required return - Growth Rate)
Dividend at year 5 should be
=Dividend at year 0 × (1 + Growth Rate)^5
= $8.69 × (1.061)^5 ÷ (0.11.5 - 0.061)
= $216.38
Hence, the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38
Answer:
been more rapid since the mid-nineteenth century than before.
Explanation:
One of the benefits resulting from the second industrial revolution (around 1870) and more specifically from mass production and electricity, is that it helped to increase the growth rate of real GDP per capita in almost all the world. Growth rate of the real GDP per capita has been steadily increasing during the last 150 years.
Of course there are bumps (recessions and wars) in the middle that alter the growth rate of different countries, but in general terms it has recovered swiftly in most places.
Answer:
B) To maximize profit, firms should produce at a level of output where price equals average variable cost
Explanation:
Firms maximize their profit by equating Marginal revenue with The Marginal cost. So, since for perfectly competitive firms, the price equals the Marginal revenue, for these firms profit is maximized by equating Price with Marginal cost not the average variable cost.
Answer:
service cost: 41,800
period cost: 20,590
Explanation:
<em><u>delivery service cost: </u></em>those who are related to the deliveries
Indirect materials 8,400
Depreciation on delivery equipment 11,200
Dispatcher's salary 5,000
Gas and oil for delivery trucks 3,200
Driver's salaries <u> 14,000 </u>
Total: 41,800
<em><u /></em>
<em><u>period cost: </u></em>those who can be linker directly or indirectly throught allocation of overhead into the delviery cost.
Repairs on office equipment 180
Office utilities 1,490
Office supplies 650
Property taxes on office building 870
Advertising 5,100
CEO's salary 12,000
*Repairs delivery equipment <u> 300 </u>
Total: 20,590
While the repair are made on delivery equipment they cannot be linked to an specific delivery or allocated as they do not incease the capacity, this isn't maintenance this is repairs those, expense for the period.
