Answer:
Required rate of return = 8%
Explanation:
<em>The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
</em>
This model is represented as follows
D(1+g)/(r-g) = P
Price, D- dividend payable in now, ke- required rate of return, g- growth rate
35 = 1×(1.05)/ke-0.05
35 × (ke-0.05) = 1.05
35ke - 1.75
= 1.05
35Ke = 1.05 + 1.75
35ke = 2.8
ke= 2.8/35= 0.08
Ke = 0.08× 100 = 8%
Required rate of return = 8%
Answer:
The marginal return of production of the second worker or marginal product of the second worker is 10 cones.
Explanation:
One worker can make 15 cones of ice cream in an hour.
Two workers can make 25 cones in the same time.
While three workers can make 30 cones in an hour.
The marginal return of the production of the second worker is the contribution of the second worker in the total output.
Marginal return
= 25 cones - 15 cones
= 10 cones
Answer:
The correct response is "145,000
".
Explanation:
The given values are:
Purchased cost,
= $150,000
Expenses,
= $5,000
Selling cost,
= $10,000
Now,
Logan's basis for depreciation will be:
= 
On putting the values, we get
= 
= 
= 
($)
