Answer and Explanation:
The computation is shown below:
Last years Dividend, D0 = $2.48
Growth Rate, g = 7%
Required Return, r = 12%
Now
D1 = D0 × (1 + g)
= $2.48 × 1.07
= $2.6536
Now
1 The Current Price is
P0 = D1 ÷ (r - g)
= $2.6536 ÷ (12% - 7%)
= $53.072
2. For the stock price in 5 years is
P5 = P0 × (1 + g)^5
= $53.072 × 1.07^5
= $74.436
3. For the stock price in 20 years is
P20 = P0 × (1 + g)^520
= $53.072 × 1.07^20
= $205.37
Answer:
$17
Explanation:
Calculation for that minimum price
Sales of port wine $32 per bottle
Less Variable costs ($15 per bottle)
Minimum price $17
($32-$15)
Therefore that minimum price is $17
The statement that provides the financial position of a company as of a specific date is the balance sheet.
<h3>What is a statement of financial position?</h3>
A balance sheet is often known as a statement of financial situation. It serves as a summary of a company's financial situation at a specific moment.
A balance sheet is a summary of the financial positions of a person or an organization in financial accounting, regardless of whether they are a sole proprietorship, a business partnership, a corporation, a private limited company, or another type of organization like the government or a not-for-profit entity.
An organization's assets, liabilities, and shareholder equity are listed on a balance sheet, which is a financial statement. One of the three primary financial statements used to assess a company is the balance sheet. It offers a snapshot of the assets and liabilities of a corporation as of the publication date.
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Increases outputs by smaller and smaller amounts.
Diminishing returns means that at a certain point with all other factors equal, increasing the inputs will yield more and more decreased outputs.
The Federal Reserve System can do all the given options except A. lender of last resort for consumers.
<h3>What does the federal reserve system do?</h3>
The federal reserve system of the United States is the central bank of the nation and as such, they engage in services like check clearing and regulating the money supply.
They also act as a lender of last resort to banks in order to ensure that they don't fail. The Fed does not lend money to consumers directly so this is not one of their roles.
Options for this question:
- A. lender of last resort for consumers
- B. regulation of the money supply
- C. supplying currency
- D. check clearing
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