Answer:
The price of the stock today will be $66.19
Explanation:
To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,
P0 = D1 / r - g
We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.
P8 = 14.25 * (1+0.06) / (0.14 - 0.06)
P8 = $188.8125
The price of the stock today will be,
P0 = 188.8125 / (1+0.14)^8
P0 = $66.189 rounded off to $66.19
Answer: A. Sales-type lease
Explanation:
A Sales type lease is one where the present value of all the lease payments of the Asset being leased is more than the cost/ carrying amount of the Asset.
The present value of the lease Payments is the Fair Value of the asset and as seen from the question, the fair value of the asset is more than the cost of the Asset. The lease will therefore be accounted for as a Sales type lease by the lessor.
It is worthy of note that this entry affects only the lessor.
Answer:
Option A is correct
Firms have different costs.
Explanation:
Option A is correct
Long run supply curve is upward sloping or constant horizontal line depends on the industry whether it is variable cost industry (increasing production cost) or a constant cost industry respectively. Option A is correct because if firms have different production cost and it is increasing as the output is increasing then it is upward Sloping long-run supply curve.
Answer:
(A). Customer value
Explanation:
<u>For a customer to obtain value or benefit from using a product, he or she must first make a sacrifice</u>, such as the amount of money spent or time taken to purchase the product.
Customer value refers to that <u>benefit the customer gets from using the product, compared to the sacrifice the customer makes to get it.</u>
