Answer:
A) Positive, because higher prices yield larger quantities supplied.
Explanation:
The correct answer to the question is A) Positive, because higher prices yield larger quantities supplied. The price elasticity of supply determines the change in price as a response to the change in supply of the good or service supplied. This is usually calculated in a figure that determines that if price increases what will be the impact on its supply, which usually is a positive figure.
Answer:
Oct 1
DR Cash............................................................................$20,000
CR Common Stock.........................................................................$20,000
Oct 2. No entry required
Oct 3
DR Office Furniture .....................................................$2,300
CR Accounts Payable................................................................$2,300
Oct 6
DR Accounts Receivable.............................................$3,600
CR Service Revenue - Realty services...................................$3,600
Oct 27
DR Accounts Payable ..................................................$850
CR Cash .......................................................................................$850
Oct 30
DR Salaries Expense ....................................................$2,500
CR Cash ..........................................................................................$2,500
Based on the information, it can be deduced that it's an indication of the uncertainty that exists in the Vietnamese cultural model.
From the complete information, Vietnam has low points in the avoidance index. This implies that they're less associated with their cultural roots and don't have concern for hiring white people.
Some of the solutions that can be applied for training the workers include providing them with ethical and language-based training and also encourage a team culture.
Learn more about model on:
brainly.com/question/25993624
Answer:
a)
$34.4
b)
$37.20
c) $59.57
Explanation:
Given:
Dividend paid = $2.15
Growth rate = 4% = 0.04
Required return = 10.5% = 0.105
Now,
a) Present value = ![\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7BDividend%20paid%7D%5Ctimes%5Ctextup%7B%281%20%2Bgrowth%20rate%29%7D%5En%7D%7B%5Ctextup%7B%28Required%20return-Growth%20rate%29%7D%7D)
for the current price n = 1
thus,
Current price = ![\frac{\textup{Dividend paid}\times\textup{(1+growth rate)}^n}{\textup{(Required return-Growth rate)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7BDividend%20paid%7D%5Ctimes%5Ctextup%7B%281%2Bgrowth%20rate%29%7D%5En%7D%7B%5Ctextup%7B%28Required%20return-Growth%20rate%29%7D%7D)
= ![\frac{\textup{2.15}\times\textup{(1 +0.04)}^1}{\textup{(0.105-0.04)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7B2.15%7D%5Ctimes%5Ctextup%7B%281%20%2B0.04%29%7D%5E1%7D%7B%5Ctextup%7B%280.105-0.04%29%7D%7D)
= $34.4
b) Price in 3 years
i.e n = 3
= ![\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7BDividend%20paid%7D%5Ctimes%5Ctextup%7B%281%20%2Bgrowth%20rate%29%7D%5En%7D%7B%5Ctextup%7B%28Required%20return-Growth%20rate%29%7D%7D)
= ![\frac{\textup{2.15}\times\textup{(1 +0.04)}^3}{\textup{(0.105-0.04)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7B2.15%7D%5Ctimes%5Ctextup%7B%281%20%2B0.04%29%7D%5E3%7D%7B%5Ctextup%7B%280.105-0.04%29%7D%7D)
=
$37.20
c) Price in 15 years
i.e n = 15
= ![\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7BDividend%20paid%7D%5Ctimes%5Ctextup%7B%281%20%2Bgrowth%20rate%29%7D%5En%7D%7B%5Ctextup%7B%28Required%20return-Growth%20rate%29%7D%7D)
= ![\frac{\textup{2.15}\times\textup{(1 +0.04)}^{15}}{\textup{(0.105-0.04)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7B2.15%7D%5Ctimes%5Ctextup%7B%281%20%2B0.04%29%7D%5E%7B15%7D%7D%7B%5Ctextup%7B%280.105-0.04%29%7D%7D)
= $59.57
Answer:
C. All else being equal, the growth rate of the dividends is greater than 2%
Explanation:
The formula to calculate the fair price of a stock with a constant growth in dividends is as follows,
- P = D1 / r-g
- Where D1 is the dividend next period
- r is the required rate of return
- g is the growth rate in dividends
- P = 1.5 / 0.1 - 0.02 = 18.75
- We are taking 1.5 as D1 as it is the dividend per share DeepMind will pay next year.
So, we will be willing to pay more than 18.75 if the fair price per share today is greater than 18.75. We check all the 3 options.
A. say the required rate is 10.1%
- P = 1.5 / (0.101 - 0.02) = 18.52
- So if the required rate of return increases from 10%, the fair price per share is falling and we will be willing to pay less than 18.75 per share.
B. P = 1.2 / (0.1 - 0.02) = 15
- If D1 = 1.2,the fair price per share will be 15 which is less so we will not be willing to pay more than 15 for such share.
C. Say the growth rate in dividends is 2.1%
- P = 1.5 / (0.1 - 0.021) = 18.99
- The fair price per share increased to 18.99 if the growth rate in dividend increases by 0.1 percentage point. Thus, C is the correct answer