Answer:
Option (a) is correct.
Explanation:
Given that,
Dividend pay in year 7, D7 = $2 per share
Growth rate of dividend, g = 2.2 percent per year
Required return, ke = 16 percent
Present value of the future dividend at year 6:
= D7 ÷ (ke - g)
= $2 ÷ (0.16 - 0.022)
= $14.49
Therefore, the present value of dividend now is as follows;
= Present value of the future dividend at year 6 × (1 + ke)^{-6}
= $14.49 × (1 + 0.16)^{-6}
= $5.95
Answer:
C. They are impersonal, which can result in dissatisfied customers.
Automated call service systems can help you, but if you have a more in depth question, it can't. The automated voice is impersonal, they don't show any emotional qualities, so they can't say, "sorry that happened to you," or, "sorry for the wait," (etc).
Answer: a decrease in government expenditure and an increase in taxes by a decision of Congress; a decrease in transfer payments and an increase in taxes with no interference by Congress (D)
Explanation:
Discretionary fiscal policy is a government policy that changes government spending or taxes. The purpose of discretionary fiscal policy is to either expand or shrink the economy. It needs approval from the Congress and President. Its examples are increases in spending on bridges, roads, stadiums etc.
Automatic fiscal policy use spending in the form of taxes and transfer payments to automatically steady the economy. An example is when unemployed become eligible for the unemployment benefits after when losing their jobs during a recession.
<span>When you are buying a car, the advance esteem depends on the whole cost of the car, less your up front installment and exchange esteem. With the auto rent, you just pay the contrast between the auto's cost and what it's required to be worth toward the finish of the rent, which is known as its remaining quality.</span>
Answer:
$45.85
Explanation:
Price today = Next year dividend / (Rate of return - Dividend growth rate)
Next year dividend = $1.85 * 1.041% = $1.92585
Therefore, we have:
Price today = $1.92585 / (8.3% - 4.1%) = $45.85
Therefore, you will be willing to pay $45.85 today to purchase one share of the company's stock.
