Answer:
Current share price =$77.81
Explanation:
Price of the stock today = .
where P4 =
where D5 = D4(1+g)
Price of the stock today = = $77.81
The shareholders elect the board of directors.
Answer:
The $200,000 represents the revenue and the $50,000 represents the profit.
Explanation:
Answer:
The correct answer is $57.
Explanation:
According to the scenario, the computation of the given data are as follows:
Dividend = $11.40
Growth rate = -0.05
Required rate of return = 0.14
So, we can calculate the price by using following formula:
Price = Dividend × ( 1 + Growth rate) ÷ ( return rate - growth rate)
By putting the value, we get
= $11.4 × ( 1 - 0.05) ÷ ( 0.14 + 0.05)
= $57
Answer:
The correct answer is letter "C": Earn zero economic profit.
Explanation:
For markets that have many companies offering similar products or services, monopolistic competition exists. Restaurants, grocery stores, and clothing stores, for example. Such similar products or services are not ideal replacements for each other in monopolistic competition. In the short run, the economic profit of the firms is positive but in the long run, the economic profit approaches to zero.