Do u also want some sources?
Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y
Price elasticity of demand measures how changes in price affect the quantity of product demanded. A good or service's price elasticity of demand is calculated by dividing percentage change in the amount sought by percentage change in the price.
The ratio of the percentage change in quantity supplied to the percentage change in price is price elasticity of supply. A good or service's price elasticity of demand is calculated by dividing percentage change in amount sought by the percentage change in price.
The ratio of percentage change in quantity supplied to percentage change in price is price elasticity of supply.
To learn more about price elasticity, click here
brainly.com/question/13691796
#SPJ4
Answer:
Net Income : $16.616
Retained Earnings: $92.256
Please see details below:
Explanation:
Income Statement 2017
Sales $71.920
Advertising Expenses -$2.232
Miscellaneous Expenses -$50.096
Utilities Expenses -$2.976
Net Income $16.616
Retained Earnings Report
Opening retained earnings $ 83.080
Add: Net Income $ 16.616
Subtotal $ 99.696
Less: Dividens -$ 7.440
Total $ 92.256
Hey there!
the answers is
Answer:
Certificates of deposits =$.13000
Bonds =$.6000
thank you
Best regards
OFFICIALLYSAVAGE2003
