Answers : last in, first out
Explanation:
Answer:
a. 9.04%
b. 4.96% approx.
c. 10%
Explanation:
a. As per dividend growth model,
Required rate of return = 
wherein, 
= Next year expected dividend
= Current market price of a share as on today
g = Annual growth rate in dividend ( in percentage)
r = Rate of return or cost of equity
Hence, required rate of return (r) = 
= 9.04%
b. R = 12%
= $24
= $1.69
Then, using the above formula, we have,
.12 = 
⇒ g = 4.96 % approx
c. g = 3%
Retention ratio (b) = 30%
Hence dividend payout ratio = 1 - 30 = 70%
g = b × r
.03 = .3 × r
⇒ r = 0.1 or 10%
Hence, rate of return earned by the firm on its's new investment is 10%.
Answer:
Cash + Equipment - Accumulated depreciation = Common stock + Retained = $46,460
Explanation:
Note: See the attached excel file for the horizontal statements model.
In the attached excel file, we have:
Accumulated depreciation = (Cost of cooktop or equipment - Estimated salvage value) / Expected useful life = ($39,000 - $3,200) / 5 = $2,440
From the attached excel file, the accounting equation can be proved from the balances as follows:
Cash + Equipment - Accumulated depreciation = $33,500 + 15,400 - $2,440 = $46,460
Common stock + Retained = $39,000 + $7,460 = $46,460
Therefore, we have:
Cash + Equipment - Accumulated depreciation = Common stock + Retained = $46,460
Answer: The more narrowly we define a market, the more elastic the demand for a product will be.
Explanation: Narrowly defined markets tend to have more elastic demand than broadly defined markets because it is easier to find close substitutes for narrowly defined goods.
For example, a broad category of food, has a fairly inelastic demand because there are no good substitutes for food while Vanilla flavoured ice cream, a very narrow category, has a very elastic demand because other flavors of ice cream (e. g Chocolate) are perfect substitutes for vanilla.
Answer:
as the price of bread increases, the quantity of bread supplied will increase.
Explanation:
The law of supply shows the positive relationship between the price and the quantity supplied keeping all other factors constant. that means if the price of one good is increased so the quantity supplied of that good also increased
So as per the given situation if the price of bread rises so the quantity of bread supplied also rises
Therefore the last option is correct
