Answer:
Expected return=5.1%
Explanation:
The expected rate of return on the stock can be determined using the dividend valuation model
<em>According to this model, the value of a stock is the sum of the present values of the future dividend that would arise from it discounted at the required rate of return.</em>
Using this model,
Cost of equity (Ke) =( D(1+g)/P) + g
Div in year 0, P= ex-div market price, g= growth rate in dividend
For this question
Expected rate of return = (1.42×(1+0.02)/46 + 0.02= 5.1%
Expected return=5.1%
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Correct question:
The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance. When courts uphold the validity of such promises, the resulting agreement is a(n) ______.
A. absolute contract
B. differentiated contract
C. void contract
D. relative contract
E. enforceable contract
Answer:
When courts uphold the validity of such promises, the resulting agreement is an (E) enforceable contract.
<h3>
What is an enforceable contract?</h3>
- An enforceable contract is one that may be enforced in a court of law, whether written or oral.
- If the law allows for contract enforcement, the assenting parties are obligated to carry out an agreement.
- Terms cannot be violated or breached without rendering the contract null and void.
- An enforceable contract is formed when two or more people enter into an agreement or contractual obligation that allows one of the parties to legally compel the other to do anything.
- The ultimate goal of a contract is to create an agreement that courts will require parties to perform or pay penalties for failing to perform.
- A contract must contain both an offer from one party and an acceptance from the other party in order to be enforceable.
<h3>Reason -</h3>
As the definition above states that the ultimate goal of a contract is to create an agreement that courts will require parties to perform or pay penalties for failing to perform.
Therefore, when courts uphold the validity of such promises, the resulting agreement is an (E) enforceable contract.
Know more about contracts here:
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Answer:
Effect on income= 7,500 increase
Explanation:
Giving the following information:
Variable costs are $0.50 per unit.
Current monthly sales are 183,000 units.
Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Sales= 15,000*1= 15,000
Variable cost= 15,000*0.5= (7,500)
Effect on income= 7,500 increase