Answer:
The correct answer is $65.90 (approx.)
Explanation:
According to the scenario, computation of the given data are as follows:
Dividend paid = $8.50
Increase dividend = $6.50 per year
Require return = 16%
We can calculate the current share price by using following method:
=[($8.5 + $6.5) ÷ (1 + 16%)^1] + [($8.5 + $6.5 + $6.5) ÷ ( 1 + 16%)^2] +[($8.5 + $6.5 + $6.5 + $6.5) ÷ (1+16%)^3] + [($8.5 + $6.5+ $6.5 + $6.5 + $6.5) ÷ (1+16%)^4
= $15 ÷ 1.16 + $21.5 ÷ 1.16^2 + 28 ÷ 1.16^3 + 34.5 ÷ 1.16^4
= $65.90 (approx.)
Answer:
lender.
Explanation:
A lender is an individual or company that makes funds available another com[any. Lenders receive fixed payments based on a predetermined rate at an agreed time.
A shareholder is the owner of a company. A shareholder is a person who buys the stock of a publicly traded company
Supplier provides raw materials needed for production to a company
An investor can either be a lender or shareholder
Answer:
The first company with detailed information.
Explanation:
Financial statements show the financial position of a company at a particular period in time. The various types are balance sheet, income statement, and cash flow statement.
The income statement shows more clearly value of the company.
When Ashton is studying the income statement, he will need as much detail as possible so that he can make informed decision to invest.
The company with detailed income statement will be a better option. The company with condensed income statement will most likely not reveal some important information that will present itself as an unpleasant surprise in the future.
Exchange
<span>Exchange is simply the act of the of giving and receiving between two individuals or two groups. A trade is a typical example of an exchange.
For instance, if a farmer gives a fixed number of eggs to another farmer for a
fixed quantity of cow’s milk, this is an exchange. Similarly, if a house guest offers to cook and
clean in return for free accommodation, this is an exchange. </span>
Answer:
B. Negative
Explanation:
When all other things remain constant, there is an inverse relationship, or negative correlation, between price and the demand for goods and services.
Hope this helps!
