Answer:
* The stock price in five years if the P/E ratio remained unchanged: $33.64
* The price be if the P/E ratio increased to 22 in five years: $37.77.
Explanation:
As the dividend has been growing at 7.25% each year in the next five years, earnings per share in the next five years should grow at the same rate, and earnings per share in year five will be: 1.21 x (1+7.25%)^5 = $1.717.
* The stock price in five years if the P/E ratio remained unchanged will be equal to:
Earning per share in the next five years x Current P/E ratio = 1.717 x 19.59 = $33.64
* The price be if the P/E ratio increased to 22 in five years will be equal to:
Earning per share in the next five years x New P/E ratio = 1.717 x 22 = $37.77.
<span>Essential goods does not affect demand for we cannot live without it. That is why the demand for essential goods will remain constant even if there is a change in price. An example is medicine; people will buy this to cure their ailment regardless of a price increase.</span>
A. An example of an increase in human capital <u>is your labor productivity increases</u>.
More about human capital:
Human capital is the term used to describe how valuable an employee's skills and expertise are economically. Employers value qualities like punctuality and loyalty as well as skills, knowledge, and abilities, as well as physical and mental well-being.
It is an intangible asset or quality because a corporation cannot list it on its balance sheet. Investments in human capital are thought to increase productivity and profitability. The more a firm invests in its employees, the more likely it is that it will be productive and successful.
Learn more about capital here:
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I believe that would be Supply and demand.
Hope I helped