Answer:
The price of the stock today=$560
Explanation:
We can use the expression for calculating the required rate of return to calculate the price of the stock today:
RRR=(EDP/SP)+DGR
where;
RRR=required rate of return
EDP=expected dividend payment
SP=share price
DGR=dividend growth rate
In our case:
RRR=13%=13/100=0.13
EDP=$2.80 per share
SP=unknown
DGR=20% and 8%, the average DGR=(20+5)/2=12.5%=0.125
replacing in the original expression;
0.13=(2.8/SP)+0.125
2.8/SP=0.13-0.125
2.8/SP=0.005
SP=2.8/0.005
SP=$560
The price of the stock today=$560
Answer:
d. shifts in market psychology and successive waves of irrational exuberance.
Explanation:
Bubble in respect to financial market means an unexpected and non-explainable reason. This although the economists believes arises because of the emotional attachment and effects on an asset. As for example: when an asset is made using the specific raw material which is discovered to be precious in the terms it is ancient then, automatically the price of the asset increases in the market.
Thus, this is nothing but a market psychology that is basically an effect of emotional concerns of individual mindset, which is irrational.
This theory is explain by Keynesian the economists.
Answer: An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible
1. They lack physical existence.
2. They provide long-term benefits.
3. They are classified as long-term assets.
Explanation:
Examples of intangible assets include goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists. You can divide intangible assets into two categories: intellectual property and goodwill. Intellectual property is something that you create with your mind, such as a design.
Answer:
$119,159
Explanation:
The computation of the quick asset is shown below:
Quick assets = Cash + Marketable securities + Accounts receivable
= $18,105 + $36,753 + $64,301
= $119,159
Only these items i.e cash, marketable securities and the account receivable are shown in the quick assets
