Answer:
Explanation:
Using dividend growth model formula for finding dividend per year can be used to find the growth rate per year;
The formula would be D1 = D0(1+g)
and D2 = D1(1+g)
D3 = D2 (1+g) and so on....
Starting with 2.00 dividend, <u>growth rate from yr1-yr2;</u>
2.07 = 2.00*(1+g)
Divide both sides by 2.00;
1+g = 2.07/ 2.00
1+g = 1.035
g = 1.035-1
g ( y1-y2) = 0.035 or 3.5%
<u>Growth rate from yr2-yr3;</u>
2.24 = 2.07(1+g)
Divide both sides by 2.07;
2.24/2.07 = 1+g
1.0821 = 1+g
1.0821-1 = g
g= 0.0821 or 8.21%
Therefore, g(y2-y3) = 8.21%
<u>Growth rate from yr3-yr4;</u>
2.34 = 2.24(1+g)
Divide both sides by 2.24;
2.34/2.24 = 1+g
1.0446 = 1+g
1.0446 -1 =g
g =0.0446 or 4.46%
Therefore, g(y3-y4) = 4.46%
<u>Growth rate from yr4-yr5;</u>
2.50 = 2.34(1+g)
2.50/2.34 = 1+g
1.0684 = 1+g
1.0684-1 = g
g=0.0684 or 6.84%
Therefore, g(y4-y5) = 6.84%
When you buy a car, you own the car when you finish paying. Leasing is when you rent it.
Answer: B. because it is important for a business to be trusted by investors, customer and the public if it is to succeed
Explanation: Ethics is defined as the set of moral principles and standards or judging whether something is right or wrong and as such, it is quite vital for managers of corporations, firms and businesses to act in an ethical manner. This is because it is important for a business to be trusted by investors, customer and the public if it is to succeed in both the short and long term.
Answer:
The correct answers are the following:
a - 4 Sunk
b - 5 Opportunity
c - 3 Fixed
d - 2 Variable
e - 6 Incremental
f - 1 Recurring
g - 7 Direct
h - 8 Non-recurring
Explanation:
a) <em>Sunk costs</em> are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.
b) <em>Opportunity costs</em> are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.
c) <em>Fixed costs</em> are those that are always the same amount and do not change with the activity level of the production of the company.
d) <em>Variable costs</em> are those that do change with the amount of activity level that the company has during the production process.
e)<em> Incremental costs</em> are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.
f) <em>Recurring costs</em> are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.
g) <em>Direct costs</em> are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.
h) <em>Non-recurring</em> costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.
Answer: $12,600
Explanation:
Based on the information that have been given in the question, the cash flow to stockholders for the year would be calculated as:
= Dividends Paid - (Ending Common Stock - Beginning Common Stock)
= $4250 - {[$49850 - $8350] - $49850}
= $4250 - [$41500 - $49850]
= $4250 - (-$8350)
= $4250 + $8350
= $12,600
