Answer:
r = 13.68%
Explanation:
We can use Gordon growth model to calculate the stock price.
P = Do x (1+g) / r - g
P: stock price (Given: $95)
Do: Last dividend paid ($5)
g: Dividend growth rate (8%)
r: required return (Missing value)
By inputting the number into the above equation, we have the following:
95 = 5 x 1.08 / (r - 0.08)
--> r = 13.68%
Answer:
well l'm not on instagram
Answer:
b.The good is a necessity
Explanation:
The price elasticity of demand = percentage change in quantity demanded/ percentage change in price
3% / 12% = 0.25
When the coefficient of elasticity is less than one, demand is inelastic.
Inelastic demand means that when price increases, there is little or no change in quantity demanded.
Necessity goods are goods that are very important to consumers and thus they tend to have an inelastic demand. For example, medications.
Substitute goods are goods that can be used in place of another good because of their similarity. E.g. butter and margarine
Goods with many substitutes have an elastic demand. If price of a good increases, consumers can easily shift consumption to substitute goods.
Narrowly defined goods have an elastic demand because it is easier to find subsituites for such goods.
Demand is more elastic in the long run because consumers have more time to search for substitutes.
I hope my answer helps you
Answer: the correct answer is a. Machine B
Explanation:
Machine A average rate return
40000 out of 300000. It means that 300000 is 100% and $ 40000 is X. We apply a simple three rule:
40000 X X= 4000000/300000
300000 100% X= 13.33%
Machine B average rate return
50000 out of 250000. It means that 250000 is 100% and $ 50000 is X. We apply a simple three rule:
50000 X X= 5000000/250000
250000 100% X= 20%
Machine C average rate return
$75,000 out of $500,000. It means that $500,000 is 1005 and $75,000 is X. We apply a simple three rule
$75,000 X X=7500000/500000
$500,000 100% X= 15%
The highest average is the one onf Machine B
Answer:
Explanation:
The preparation of the income statement is presented below using the generally accepted accounting Principles (GAAP) :
Sales $176,000
Less: Cost of goods sold ($97,200) ($54,000 + $43,200)
Gross margin $78,800
Less: Selling and administrative cost ($31,000) ($17,200 + $13,800)
Net income $47,800
Hence, we considered all the given information
