Both A and B so answer C.
A. you own a home other options are just qualifications. good luck
Assuming the required return is 12 percent, the stock price today is $40.61.
Given:
Dividend=$2.58 per share
Increase in Dividend=20% and 15%
Number of year=2 years
Increase in Annual Dividend=3.6%
Required return=12%
P2=Stock price today
Now let calculate the stock price today
P2 = [$2.58(1+0.20)]/(1+.12) + [$2.58(1+.20)(1+.15)]/(1+.12)^2 + {[$2.58(1+.20)(1+.15)(1+.036)]/(0.12 − 0.036)}/(1+.12)^2
P2 = [$2.58(1.20)]/1.12 + [$2.58(1.20)(1.15)]/1.12^2 + {[$2.58(1.20)(1.15)(1.036)]/(0.12 − 0.036)}/1.12^2
P2=($3.096/1.12)+ ($3.5604/1.2544)+ [($3.68857/0.084)/1.2544]
P2=$2.7643+$2.838329+($43.91155/1.2544)
P2=$2.7643+$2.838329+$35.0060
P2=$40.61
Inconclusion assuming the required return is 12 percent, the stock price today is $40.61.
Learn more here:
brainly.com/question/24314972
The decision to expand depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients.
<h3>What is marginal cost and marginal revenue?</h3>
Marginal revenue is the change in total revenue when output is increased by one unit. Marginal cost is the change in total cost when consumption is increased by one unit.
Economic theory suggests that output should be increased if the marginal revenue exceeds the marginal cost. If marginal cost is greater than marginal revenue, the business should not be expanded. Profit is maximised when marginal revenue is equal to marginal cost.
To learn more about marginal revenue, please check: brainly.com/question/7781429
Answer:
Total of Xavier's share = $49750
Explanation:
The allocation of net income to both Xavier and Yolonda will be as follows,
Net Income 90000
<u>Interest on Capital:</u>
Xavier(0.15 * 100000) 15000
Yolonda(0.15 * 50000) <u> 7500</u> <u> (22500)
</u>
67500
<u>Salary:</u>
Xavier 22000
Yolonda <u>20000</u> (<u>42000)</u>
25500
<u>Share of remaining profit:</u>
Xavier 12750
Yolonda <u>12750</u> <u>25500
</u>
<u />
Total of Xavier's share = 15000 + 22000 + 12750 = $49750