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3 years ago

The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks.

1 answer:

7 0

To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%

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El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about

BaLLatris [955]

Answer:

have a higher labor-to-land ratio than its imports from Honduras

Explanation:

The factor proportions theory (or Heckscher-Ohlin model) of trade states that countries will export the goods which they can produce using their abundant factors of production. For example, countries like Japan that have abundance of labor force and capital, but very little land, will produce and export industrial goods that require a lot of labor and capital. On the other hand, countries like Argentina which have abundant labor and land, will export agricultural products.

in this case, El Salvador compared to Honduras has abundant labor, so the products that El Salvador exports to Honduras will have a higher labor-to-land due to the abundance of labor.

7 0

3 years ago

Which of the given stakeholders form part of a company’s secondary stakeholders?

zepelin [54]

Explanation:

A company stakeholder can be either an individual group of people or an institution whose actions can affect a business or can be affected by the actions of that business. examples of those stakeholders include government, business, competitors, media groups.

5 0

3 years ago

Draw the tree for a put option on $20,000 with a strike price of £10,000. the current exchange rate is £1.00 = $2.00 and in one

telo118 [61]

Answer:

$ 0.000912 / pound

Explanation:

Current spot rate : 100 pound / $ or 0.01 $ / pound

In the next period the $ value of the pound can either increase or decrease by 15%

$ Risk-free rate = 5% and

pound Risk-free rate = 1%

Net Risk- free Rate = 5 - 1

= 4%

Risk-Neutral Probability of price Rise (p) = (0.04 - 0.085) / (1.15 - 0.85)

= 0.653

$ price of pound if price rises = 1.15 x 0.01 =$ 0.0115 / pound

$ price of pound if price falls = 0.85 x 0.01 = $ 0.0085 / pound

Strike price = current spot rate (as option is at the money) = 0.01 $ / pound

Therefore, pay offs one period later

if price is $ 0.0115 / pound, pay off (p₁)= 0.0115 - 0.01

= 0.0015$/ Pound

If price is 0.0085 $ / pound, pay off (p₂) = $0

Hence, Expecyed pay off = p₁ x p + p₂ x (1-p)

= 0.0015 x 0.633 + 0 x ( 1 - 0.633)

= $ 0.00095 / pound

Call price = Present value of Expected pay off at Net Risk-free risk

= 0.00095 exp (0.04)

= $ 0.000912 / pound

5 0

3 years ago

Spencer Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under

miv72 [106K]

Answer:

Explanation:

The journal entry is shown below:

Petty cash A/c $200

To Cash A/c $200

(Being the petty cash fund is established)

Simply we debited the petty cash account and credited the cash account so that the correct posting can be done with the correct item and the correct value.

All other information which is given is not relevant. Hence, ignored it

4 0

3 years ago

How would the law affect the supply for health insurance? Why?

PSYCHO15rus [73]

<u>The law affect the supply for health insurance:</u>

Medicare for high-salary laborers and expenses significant expense health care coverage plans. The ACA forces a duty on individuals without wellbeing plans. Since most specialists influenced by this duty will pay a sum disconnected to work exertion, the CBO gauges that this won't influence the work supply.

Five components can influence an arrangement's month to month premium: area, age, tobacco use, plan classification, and whether the arrangement covers wards. FYI Your wellbeing, clinical history, or sexual orientation can't influence your premium. The law's objectives were to diminish the quantity of uninsured, make inclusion progressively moderate, and grow access to mind. Notwithstanding these triumphs, the law confronted solid political headwinds from the beginning.

Absence of sufficient inclusion makes it hard for individuals to get the social insurance they need and, when they do get care, loads them with enormous doctor's visit expenses. Less inclined to get clinical consideration. Bound to be analyzed later.

8 0

3 years ago